Some tips for pricing of your learning management system (LMS)

Craig Weiss is a leading analyst for learning systems and has been monitoring and reporting on the industry for many years.  To see more of Craig's information and services please click here.

In a recent post on the business sharing platform LinkedIn entitled 'Vendor Secrets - An what you need to know' Craig highlights some key things to watch out for when discussing LMS pricing with your provider:

1. How pricing of Active Users is calculated particularly if you make payments upfront.
   1. Unlike iwise2ebusiness who bills monthly on actual active user counts,  Craig highlights that many LMS Vendors who are charging up front will not take into account monthly variations in users.
   2. Our suggestion is to examine whether you are paying too much and examine the actual way Active Users are calculated with you LMS vendor.
2. Discounts offered and length of contract.
   1. Craig highlights that 10% for one year or 15% for a 3 year deal are fairly common on standard pricing.
   2. Our suggestion is examine the length of your contract.  Technology and more importantly your needs will be changing very fast.  It is important to have flexibility and a partner with whom you can grow your needs and adapt to changing technologies.
3. Opting out at the end of the contract
   1. At iwise2ebusines we have always had the ability for a client to opt out with a reasonable notice period.
   2. Craig suggests that getting an ability to opt out is important and guard against changes in ownership of lock in on a set of features that do not meet your requirements.
4. Technology review of a proposal
   1. Craig highlights the need to ask if a technologist has reviewed a proposal.
   2. We believe it is vital to ensure that those actually delivering or developing the solution for your learning system are a key cog in the sales proposal.  This is going to increase your satisfaction but also ease the implementation process.
5. Demo and RFP
   1. Craig highlights the needs to sequence the demo and RFP so you truly get your questions answered and your requirements clear.
   2. Our suggestion is to write down a list of requirements, share those with the vendor and then see a demo and discuss gaps and needs and then crystalise into an RFP.  This will help all parties.

Craig highlights some key points when discussing pricing an LMS and having had many years delivery learning solutions and bespoke eLearning solutions these are great guidelines.

For those on LinkedIn Craigs post can be found at here.

If you would like us to help your with your digital solution then please speak to us.