Transparency & Your Decision on Software

This article is sponsored by Bangert.

Where do I start? Let's just start with this: There is a problem with transparency in the construction software industry that makes customer choice more difficult than it should be.

Read on to understand why and explore the domino effect that follows.

Construction Software Platforms

This section refers mainly to construction accounting platforms, since they are the last to be experiencing any meaningful change.

In the competitive landscape of construction software, it’s challenging to differentiate between providers. Many tout similar-sounding benefits in their sales pitches, often relying on vague terms such as “cloud software,” when they are really offering a cloud-hosted legacy system that was built in the 1990s, or “#1 construction software,” when they aren’t and never have been. It makes it hard to weed out what you don’t want early on and save yourself a lot of time. “Spin” is a nice way to put it.

However, the industry is at the point where superior cloud-native software is available. Software that makes no excuses, is truly modern, and is set to deliver efficiencies for your company for years to come. Software built on a modern platform is poised to grow and offers longevity and productivity that legacy products cannot regardless of whether they are cloud-hosted or not.

Just because they say it’s “cloud” and sell it as a subscription does not make it modern or equivalent to a cloud-native system.

Pricing & the Sales Process

One of the first things anyone wants to know is how much does it cost? But where can you find the prices without having to go through a discovery session, schedule a demo with a business development representative, talk to a pre-sales engineer, or engage a salesperson, and then, after the demo, wait two weeks to get a quote? Hardly anywhere, and all you wanted to know was the price.

Let’s face it, we are all used to going online and finding, researching, and getting a price for what we want; so why is this so difficult?

The answer is that if you are willing to endure the process, then it says you are committed. The price is revealed later, in the hopes that you will love the offer so much that price is no longer an issue. You’ll get to have fun with trial closes, efforts to gain commitment, etc., all the latest sales techniques.

As a salesperson for over 40 years, I have nothing but the greatest respect for good salespeople; it is a noble profession that I highly recommend for the people with integrity that are suited to it. It also means I know it inside and out and have sold to well over 1,000 construction companies. And this article explores my view, which is that the process needs to change.

Demos

Demos have long been the go-to method for selling software, but let’s take a closer look.

I’ve been on both ends of the spectrum, from wrapping up a sale in a brisk 15 minutes (not advisable) to enduring a series of demos that collectively spanned no more than four hours. One to four hours is not much in terms of time for evaluating a software system that could, if selected well, have a profound, years-long positive impact on your company. For the same reason, one to four hours spent resulting in a poorly selected system can also profoundly impact your company, just not in the way you’d like.

The way in which these two scenarios play out depends a lot on the salesperson.

Good salespeople tell you what is, not what they think you want to hear, and this is critical to making a good choice. Transparency is essential; hopefully, your value-added reseller is committed to making you a 100% happy customer. The only way to achieve that goal is to be completely transparent, making sure that expectations are completely aligned from beginning to end.

A preferable method is to know what you are evaluating before engaging a salesperson. The tools needed to allow you to conduct your own unbiased research exist — all that is needed is for the information to be put on these open platforms (like YouTube) for free, unfettered access.

You might still want to engage a salesperson, but at least you can fact check and get your questions answered in greater detail online rather than in a relatively short demo.

Quoting a Price, Particularly Services

At this stage, you will have to come to a decision, and it’s time to get a final price for the system including the required services. The software part is pretty straightforward, as prices are usually set by the publisher and there are discounts from time-to-time, which you should ask about. The services are where things get pretty murky.

The vast majority of providers price services by the hour. There is a trend toward offering services as a subscription, but let’s examine both:

If services are quoted by the hour, understand that there is no real way for a salesperson to quote the budget accurately. There just is not sufficient information to do it. So, what you will get is a ‘guesstimate’ based on past experience. According to industry data, budgets are significantly exceeded in more than 70% of the cases. In other words, double the number presented to avoid disappointment.

Service subscriptions require even more discernment. We normally imagine a subscription as an “all-you-can-eat” situation with access anytime you want it — think Netflix.

In the service world, this may not be the subscription offered. Often, with construction accounting service subscriptions, it is a metered subscription. Terms may be something like this: $X,XXX/month until the software is live, and then a lower amount afterward.

But here's the catch, you get a limited number of limited time, pre-scheduled sessions per week for the subscription price. This is really just a different way to price by the hour, usually at a premium. Not really what you expect of a subscription. So be mindful of this question: How long will it take you to be live? Does anyone really know? The answer is likely no, they really don’t, because just like hourly models, there isn’t enough information to predict it accurately.

We advocate for service subscriptions, as the billed hour is an ancient practice that needs to be put to bed for good, however, we advocate for real subscriptions that offer anytime, unlimited access.

The Domino Effect

If you start with assuming all software platforms are equal, then that is the first domino to fall. Take time to understand why cloud native should be the first choice — and in 2024, the only choice — unless the budget simply cannot allow it.

Under those conditions, it is advisable that it may be better to continue what you are doing rather than putting time and money into a system that you are likely to change in less than five years. You would ultimately be ahead by delaying an investment a year or two than investing in software that can be argued is already aged-out and will certainly be out of date in five years.

Find a provider that publishes in-depth information on all aspects of the software you are considering, do your own research and evaluation, and then engage a salesperson. Preferably, you would have nearly all of the information you need including pricing before being put though a sales process. Watch the customer videos, as you’ll learn a lot from them and gain some insight into the process and solve some problems.

Lastly, take the time to really understand the charges you could face implementing the software. Overages can be budget-busting and are common. If the provider charges by the hour or offers a metered subscription plan, then it is wise to get a guaranteed cost not to exceed the total from the provider in writing.

If they aren’t willing to do that, then you may want to reconsider. There are few areas of construction where open-ended contracts are acceptable; software services should be no different.

Starting with an inferior platform, a lack of knowledge-building content, and ending with a service contract with no cost limits is a game of dominoes that you likely do not want to play.

There Is a Better Way

There are software providers that publish detailed, useful information daily on platforms like YouTube, along with advice and commentary. Many of them also publish their actual customer stories so that you can hear directly from the end user. This is Important because it allows you to gain knowledge before engaging a salesperson and sets you on a good course to make it the best decision for your company.

Freely offered training content and customer stories are another fantastic first step on your journey. Partners with a modern approach will also offer the opportunity for you to price a system on your own, without strings attached, all in an effort to give you an effort to become educated without the influence of a sales process.

Once you’ve made your decision, the next step would be to verify that your provider can give you a single, guaranteed price that will carry you from beginning to live with known cost — this is the true modern way of deploying software.