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As an offering our core business model for our Online Food Ordering & Delivery Software is to sell the entire system with source code for single user license to clients to set-up on their own server and run their business. Many of our clients opt for Rental/SAAS Based Software offerings to reduce the starting costs due to budget constraints. This is not a good step as you may save money upfront but will be loosing a lot of profits in long term. We do not believe a rental/SAAS based software offering is good in long term for entrepreneurs and business owners. Online Ordering is meant to increase your revenues and profits and rentals/SAAS based software do exactly the vice-versa. Each rental/SAAS based software have different ways(usually hidden) to take pie of your revenue/profit apart from the monthly charges and set-up costs. some of them are:-
- There will be a per transaction charges on any order placed through their system.
- Usually rental/SAAS based software will not allow you to have your local payment gateway- you will need to use their payment gateway and there will be additional commission from what the payment gateway charges that will go in system providers pocket.
- You will be charged per restaurant.
- There will be commissions on total order amount.
- You maybe charged additional for using marketing tools like mailing, coupons etc.
- There maybe separate charges for each page of your website.
- Vendor will try to sell you their hardware’s like printers/POS/tablets etc.
- When you grow you will get exorbitant charges for adding new locations or expanding.
- There will be other exaggerated charges for any custom work.
Apart from eating into profits there are many other disadvantages of using a rental/SAAS Based Online Ordering. Read our article here to know more about them. This is the main reason we have never ventured in offering eDeliveryApp as a Rental/SAAS based Offering.
However now we have come up with WIN WIN model called BUILD-OPERATE-TRANSFER that combines the cost benefits of a Rental/SAAS based and Value benefits of self owned and hosted system.
HOW THE BOT[BUILD-OPERATE-TRANSFER]Model Works?
You start on Rental/SAAS model with a Small Set-up cost and monthly charges. In our model the monthly charges are FLAT RATE – there is NO additional or hidden charges like per transaction charges or commissions etc. You are free to use any payment gateway you want to use.
A Unique feature of our model is that our client have an option of buying this same running system with source-code/database and move to their own server – This client can do anytime down the line. You run your business on this and whenever you are ready and want to own the system/put on your own server – you simply make payment for the system source[which is pre-agreed as per our regular pricing] and we handover the system to you as it is.
Also the period when the system is on Rental/SAAS model it will not be a typical SAAS based Software. The only primary difference between self hosted/owned system and BOT model would be that you wont have access to source code. Apart from that you are free to make any kind of customization/changes to the system.Even the mobile apps will be published on your own Google play and Apple store accounts. We provide resources to do the custom changes at very nominal price.
The Advantage of this model is that you have true controlled per month pricing/cost an can own the system anytime you want and retain your branding/assets/customers etc. and don’t need to start all over again and most importantly you are not limited or controlled by any 3rd party.
You can try the system software and even the business model on low budget and then can move the entire system to your own server retaining all the assets you have built as business including your customer database, their search engine rankings and all business branding/goodwill they have created through their own marketing practises. We also do not have any per transaction charges also. we only have flat per month charges. The payment gateway will be yours and the domain will be owned by you. Also the price for which we will sell you the entire system will be agreed to when we start the rental contract so that when we increase the price you are not affected.
Note – This model is only available to Single Restaurant owners(including multi-location) as of now. For Multi-restaurant commission based business we don’t provide the BOT model however if you are interested then do contact us – we’ll discuss your requirement and may provide the BOT model on case to case basis.
|Component/Platform||Set-Up Cost||Monthly Rental|
|Customer Android App||$75.00||$15.00|
|Customer iOS App||$75.00||$15.00|
|Order taking iOS App||Free||Free**|
What is Included in the set-up cost
The set-up costs includes setting up and configuring the system on the server. Then making changes to the system to brand as yours – like logo updation/theme color changes/Making Design changes(only minor ones)/adding your custom images & Graphics/adding your content to the site and the apps/customizing emails etc. for your system. We provide total of 40 hours of manual efforts in setting up the system for all 3 i.e. web + iOs + Android This is more than enough time for setting up standard system – for requirement where there is lot of design changes or adding many complicated features a dedicated team member will be provided on weekly basis costing $299/per week(thats less than $7.5/hr!)
Website – Customer will buy domain of their choice from any domain provider and will own the domain. The code will be hosted on our server. Customer needs to point the domain name-server towards our server. We will provide the name-server to be updated. Your domain provider can do this or we can update this for you. This way the domain will be owned by you and the code will be on our server.
Mobile apps – Customer needs to have their own account for uploading the mobile apps. Apple store charges $100/yr per account and android google play store charges $25(we can provide google play account for uploading if customer wants- apple does not allow to upload from providers account). The back-end access will be with us and the source code will not be provided to customer till you move from rental model to self hosted one.
CAN I HAVE ONLY MOBILE APPS WITHOUT WEBSITE?
No, The website is needed for database and back end management so it is mandatory to have the website. You may choose to hide the front-end and use only the back-end if you plan to publish only mobile apps.
CAN I HAVE ONLY WEBSITE AND EITHER ONE OF THE APPS I.E. ANDROID OR IOS?
Yes, you can run only website and one of the apps. The monthly cost would be reduced proportionately.
WHAT IS THE COST OF OUTRIGHT PURCHASE OF THE SYSTEM?
Standard cost for outright purchase of the system is $1200 for all 3 i.e. website, android and ios apps for the default system and default designs. However our pricing changes on regular basis so plz confirm with your sales rep/account manager about the Outright purchase pricing for confirmation.
ARE THE SET-UP COSTS INCLUDED WHEN I OUTRIGHT PURCHASE OF THE SOURCE CODE?
The set-up cost are manual efforts and are not included in outright purchase of source code.There is also no cost for re-setting up the system on your server when you buy the source code. Our pricing is very competitive and if you break down to hourly pricing for set-up cost of 40 hours manual efforts then it hardly come to $6/hr cost and if you include re-setting up the system on your server the 2nd time at no additional cost then the set-up cost further comes down to nearly $3/hr.
AFTER SETTING UP THE RENTAL SYSTEM I WOULD NEED MULTIPLE CUSTOM CHANGES AND FEATURES. WOULD THIS BE INCLUDED IN THE SET-UP COST OR OUTRIGHT PURCHASE COST? HOW WOULD THIS COSTING WORK?
The efforts and cost for custom changes and features are additional to set-up and/or outright purchase cost. Any custom changes done will be for lifetime and will be passed onto your server when you buy the source code.