SMALL DISTRICT PROMOTION FAQ Q: What is Schoolwires

Schoolwires Acclaim2
Effective Immediately
Schoolwires Small District Package
For further guidance please contact your Sales
Regional Manager or Michelle in Sales
Operations.
For further information
Michelle Sweigart – Sales Operations
Peggi Munkittrick – Solutions Management
Schoolwires Small District Package
PROPOSAL
Objective
To improve our market penetration in the small district
segment of our market (Tier 0-1) by 9 districts per
month through December, 2011.
To realize a 10% increase the number of pro-rated
contracts won in Q4 2011 as compared to Q4 2010.
To realize a 10% increase in our 470 response win-rate
in the small district segment of our market as compared
to July 2009 – June 2010.
Centricity2
Acclaim
Software
Centricity2 Acclaim (price: $175/site)
o This is the same package as Centricity2 Core, minus
Forms & Surveys
o Software pricing was calculated at 30% of the
proposed $600/site price.
COMMENT
No change.
The recommendation was to rename Acclaim as
Acclaim2. However, that creates a name of Centricity2
Acclaim2. The other alternative is to come up with a
new name (i.e., Accord). However, to avoid the delay
incurred by coming up with a new name, my
recommendation is that you stay with Acclaim and the
original package definition (C2 Core w/o Forms &
Surveys).
Pricing was determined by taking the original approved
Acclaim pricing and determining what the per/site
price was for a 1-school district that purchased two
sites (district and school).
1 site
2 sites
3 sites
4 sites
Old
New
$1,150
$1,150
$1,150
$1,150
$600
$1,200
$1,800
$2,400
NOTE: My recommendation is to sell Acclaim at $600
per/site to Tier 0 and Tier 1. The price ranges from
$600 for a 1-site deal to $3,000 for a 5-site deal (4
schools and 1 district).
Centricity2
Acclaim Hosting
Schoolwires Hosting (1/50) (price: $425/site)
o Hosting pricing was calculated at 70% of the
proposed $600/site price.
Required
Services
Activation ($150/site)
1 2-hr. online training session ($400)
The recommendation was to bundle the hosting with
the software and to cost allocate the eligible service.
Changing our approach would require us to submit an
updated product/service list to USAC and to provide a
justification for the new cost allocation. We can do
this, and I’m confident it will be approved. But it’s
quicker and faster just to use our current approach
(software and hosting on separate lines), and then readdress this when we submit a new cost allocation
proposal for all C2 packages.
I couldn’t find the spreadsheet that Don and I used to
determine the service bundle pricing. However, since
list pricing for activation is $200/site and $400 for one
online training session, then I had to discount both by
20% to get to an approved price of $650 for two sites
(district and school). (($400+$200+$200)*80%=$640)
Based upon the above assumption, my
recommendation is to break out the required services
on separate line items with the following pricing:
1 site
2 sites
3 sites
4 sites
Old
New
$650
$650
$650
$650
$500
$650
$800
$950
NOTE: My recommendation is to sell activation at
$150 per/site and training at $350/account to Tier 0
and Tier 1.
Optional
Services
Bronze Template ($600)
Silver Template ($1,850)
Gold Template ($7,500)
No change. This is the approved template pricing from
the original Acclaim promotion.
Value
Proposition
In tough economic conditions, it is more important than
ever for districts to increase communication with all
their stakeholders (i.e., media, taxpayers, senior
citizens, board members) in order to gain support for
the district’s key initiatives.
No change.
We offer a cost-effective, turn-key solution – designed
specifically for small districts - that allows them to
communicate more effectively with their internal and
external communities while minimizing the demands on
their IT infrastructure and staff.
Effective Dates
No change.
Effective immediately
Eligible
Participants
Public school districts in Tiers 0 and 1
o NOTE: Existing clients are not eligible for this
promotion.
o NOTE: Private schools are not eligible for this
promotion.
Do we want to open this up to private schools?
Sales Orders
Estimated 2011 Sales Orders = ($1,200 + $650) x 36 =
$66,600
o Assumes 1 district with 1 school purchasing
software, hosting, activation, and training.
Estimated Monthly Sales Orders = ($1,200 + $650) x 9 =
$16,650
o Assumes 1 district with1 school purchasing
software, hosting, activation, and training.
Updated to reflect the base case as proposed by Doug.
Promotional
Cost-effective, turn-key solution “priced right” for small
districts
No change
Offer
Offer
Restrictions
Offer
Exceptions /
Exception
Process
This promotion may not be used in Texas!!
No additional discounts may be applied.
Only available to Tier 0 and Tier 1 public school districts
Because this is a low-margin package, there will be no
exceptions to the eligibility requirements or the
restrictions.
What do you want to do about Texas?
No change.
Supporting
Collaterals
The following documentation will be available for use
by the sales team:
o Small District Promotion Overview Document
o FAQ
o One-page leave behind (flyer?)
o Marketing email campaign
 Due to the CANN SPAM act, the sales team will
not be able to initiate their own email
campaigns. However, they will be able to
follow up with anyone who responds to
Marketing’s email campaign. And they can
contact anyone with whom they already have a
pre-existing relationship.
No change.
E-rate
Implications
There are no E-rate implications. The fee for the
hosting service is listed separately on the contract and
is 100% eligible for E-rate support.
No change.
CRM
Implications
There will be a minimum of four items listed on the
contract:
o Centricity2Acclaim Software Subscription
o Centricity: Schoolwires Web Hosting Service (ASP)
(1/50)
o Implementation: Centricity2 Acclaim
o Training: Online Session
The major change is that I have broken up the service
bundle that previously included both implementation
and training into two line items on the agreement. This
is required to eliminate the manual data-entry and
back-end reporting challenges that we encountered as
a result of the bundle.
SMALL DISTRICT PROMOTION FAQ
Q:
A:
What is Schoolwires Hosting 1/50? What does that mean?
There are now 4 hosting products that can be sold to Schoolwires customers. Our standard hosting unit is 1/100,
which means that for each unit (i.e., site) purchased, the client will receive 1 GB of storage and 100 Flexsites
(sections). The other three options are:
 Schoolwires Web Hosting Service (1/50): 1 GB of storage and 50 Flexsites (sections) per site
 Schoolwires Web Hosting Service (2/250): 2 GB’s of storage and 250 Flexsites (sections) per site
 Schoolwires Web Hosting Service (5/500): 5 GB’s of storage and 500 Flexsites (sections) per site
Q:
A:
For districts applying for E-Rate, are they allowed to sign a pro-rated contract?
Yes. There is no restriction that prevents a district from signing a pro-rated contract with any vendor. However,
the pro-rated contract is not eligible for E-Rate support. Therefore, if a district wants software and web hosting on
their pro-rated contract (in order to start before July 1), they need to understand that the web hosting portion of
their purchase will not be covered by E-Rate.