Eight million dollars. Think about that number for one second. Eight million dollars. It is a lot by far, and it was what a buyer (i.e. company) over paid for their LMS. The LMS vendor got away with charging an outrageous amount for their system, with a “deal for them”.
$48 a seat. Seems high right? Once again, a buyer paid that under the $4/pp/per month, angle, which equates to $48 per seat. With 1,000 end users. Again, a “deal” according to the vendor.
APIs included at no charge, but our setup fee is $75,000. $75,000 to setup a pre-packaged system, where you get the base configs everyone else gets? What is the 75K actually for? Oh, wait, I forgot it’s a deal.
The Pricing Wars
Whenever a recession hits the e-learning industry, and especially at the learning system market, pricing should drop. Rates should be lower, and services provided expanded.