SolidWorks backpedals on penalties
From an anonymous source:
Dear SolidWorks Reseller,
This note is to inform you that we will not implement the new Subscription start date or late fee increases which were scheduled to be effective on October 15, 2008. Based on feedback we received from you, our field sales team, and our customers over the past several weeks, we will review our overall Subscription policies to ensure that we remain easy to do business with and provide the best value for all of our customers.
Appended to this email is a letter to send to those customers who you feel should be informed of this information.
Together, we are dedicated to providing even more value and earning even higher levels of satisfaction from all of our customers worldwide. Further, we will always welcome non-Subscription customers back to our community any time at an affordable price. If you have any questions or concerns, please contact Paul Mazur, your Regional Subscription Manager, or myself.
Thank you,
Rich Welch
Vice President, Customer Services
Dassault Systèmes SolidWorks Corp.
And here is the appended email:
Dear SolidWorks Customer,
This note is to clear up any confusion over SolidWorks Subscription policy changes that, if they had been implemented, would have affected a very small percentage of SolidWorks users. It is also to assure you that subscription prices are absolutely not increasing. The subscription price has been constant since our inception and will remain so for the foreseeable future.
We understand that you need to focus on designing better products and improving your business performance, not worrying about software tools or subscription terms.
You may have heard of plans to increase a fee for late subscription payments (and late payments only). Based on valuable input from customers and resellers over the past few weeks, we have decided not to implement these changes. Instead, we are carefully weighing this input and reviewing our overall subscription policies. We have two imperatives in this review: 1) to remain easy for you to do business with and 2) to ensure you receive the best value for your investment. This means that you will continue to gain value from our subscription offerings, and non-subscription customers can rejoin our community any time at an affordable price.
Nothing is more important to us than our relationship with you. We’re pleased that your overall satisfaction with our support services and value added-resellers continues to increase and has never been higher, according to our annual independent satisfaction survey of nearly 10,000 customers conducted in July. Although the ratings are good they need to be better, and we will continue to provide better performance, value, and quality throughout our entire product suite and services.
If you have any questions or concerns about Subscriptions or our products in general, please call your local reseller, or send email to me (rwelch@solidworks.com) or Paul Mazur (pmazur@solidworks.com) and we’ll be happy to respond.
Thank you,
Rich Welch
Vice President, Customer Service
Dassault Systèmes SolidWorks Corp.
Just so you know, I am sick of this topic. But it’s important, so I write.
Since the penalty didn’t really affect anyone, neither will this move.
Based on this reaction, do you think Mr. Welch understands anything that you have said in comments here and in other places on the net?
It is impressive that SW got off their collective ass and did something, but to me it’s a little surprising that it is so pointless.
Interestingly, all the resellers that have contacted me have said they hate this penalty. It is a PITA for them, and makes them look mean spirited to customers. So ironically, resellers are cheering this decision. Resellers have not been cheering the other recommendations we have made, but this much is a victory for them, and at least not a loss for us.
What do you think?
Well I would hope that “remaining easy to do business with” includes no longer penalizing people for not wanting to pay to be shafted (on time : ) )? What is this “we will always welcome …” bs.. I guess as long as they are willing to pay, and even pay penalties they will be welcomed back?
Matt, you’re sick of this subject? I think you deserve to be proud of it.. isn’t this Reseller letter partly a result of this blog subject?
Tim
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I would be proud of it if I actually believed that SW is going to do something that would make users happy. The topic is eating a lot of my time, and frankly is going to earn me a lot of ill will from certain corners. Still, SW continues with their head in the sand and it looks like they do not plan to offer options.
SolidWorks as a corporate entity and viable product has become “pointless” as far as I’m concerned. While I did renew my subscription in 2008, after trying to familiarize myself with SW 2008, I found it be “pointless” and less productive and capable than SW 2007 SP4. Exit SW 2008. Will I try SW 2009? Yes, but I will trash it too if it does not
provide a significant increase in productivity and/or capabiltiy. Will I resubscribe to the MA? Not unless SW adopts most, if not all, of our recent recommendations before the SW 2009 rollout.
SW 2007 is doing a reasonable job for me. Could it be better? You bet, but again, my only reason for upgrading would be for added productivity and capability that I can use to satisfy my clientele. I refuse to pay [again] for
anything less. I’d rather switch than fight.
One thing SW could do to show they really are taking us seriously is to make their product backwards compatible. In so doing they would be saying to everyone “You only have to upgrade if you feel we’ve improved the product.” Wow! Wouldn’t that be refreshing?
****
Functionality is hobbled by the aggressive business plan that forces users into a forward ratcheting version scheme.
Whoa:
“a very small percentage of SolidWorks users”
“your overall satisfaction with our support services and value added-resellers continues to increase”
Whatever.
Look, overall I see this as a positive step — really. It’s very easy for me to see the negatives in things right away, but the fact is that this policy change was repealed (apparently by the noise from the customer base) and that they “are carefully weighing this input and reviewing our overall subscription policies”. Perhaps there is more good news to come? If there really is a comprehensive review of the subscription policies to come, I see it taking more than a few days — particularly if painful to resellers or corporate SolidWorks.
“Based on valuable input from customers and resellers over the past few weeks, we have decided not to implement these changes. Instead, we are carefully weighing this input and reviewing our overall subscription policies.”
Let’s not twist the knife any more than necessary. SW has capitulated on the penalty fees. Let’s give SW the benefit of the doubt, be patient, and see just how much they have listened and care about the disgruntled user base. At this point I see no need for more gauntlets to be thrown.
I say congratulations to the users who commented here, and especially to Matt for sticking his neck out the furthest. I also commend SW for this response. Time will tell if they are to be further commended, or whether further (more drastic) action is necessary.
Cheers.
That’s pretty much what I expected. Repeal the part of the policy that nobody was complaining about. Notice that none of our suggestions were to lower the fees? Typical corporate wash-over. I find it fitting that Rich claims that they are changing the policy because “a very small percentage” of us complained. I mean, didn’t he claim that the penalties were being raised to make up for a small percentage of users that use support without paying in the first place?
Ah, what do I know anyway…
Eltron,
To be fair, the letter stated, “… if they had been implemented, would have affected a very small percentage of SolidWorks users”, not that, ““a very small percentage” of us complained”.
“your overall satisfaction with our support services and value added-resellers continues to increase and has never been higher, according to our annual independent satisfaction survey of nearly 10,000 customers conducted in July.”
Hmm. What percentage of the user base does 10,000 make up? 2%? I’ve been using SolidWorks since the beginning of 1999 and have never seen or participated in the mentioned satisfaction survey. I commend Rich Welch’s efforts, but I haven’t seen the proof yet. My recommendation would be to first get some feedback from the user base before announcing any official change to subscription. I’m sure there’s a lot of number crunching to be done and they aren’t looking to lose revenue for themselves or the VARs. That goes without saying. Let’s be patient and see what they come up with.
jeffro, you bring up a good point. I’ve never seen a survey either, and 10,000 users seems to be an awfully small percentage.
To my recollection, the aforementioned survey was given before the subscription announcement. And since, as far as I know, the survey is sent to customers with current subscriptions they missed a segment of customers. It will be interesting to see if the next surevy generates the same results and if the spin is genuine. The subscription issue for me has been one of Solidworks evolving into a systemic corporate culture, ie Microsoft driven, that says you’ll take what we give you and like it. Look at Vista, if it ain’t fixed don’t break it.
I might just add that most corporations fall into the category of a benevolent dictatorship, hardly a democracy except where the bottom line is concerned. Unfortunately, we will see more corporations following the doctrine of ‘more money for less service’. I hope Solidworks will be different, and overcome the growing pains of transitioning from pusuing market share to having market share.
I have a good working relationship with my VAR, and although Solidworks has lost some of my trust they have not damaged it permantently. I am optimitic that changes will come and they will be well thought out, they will listen to their VAR’s and maybe, just maybe seek a nod from the ‘software holders’ before jumping in with both feet.
Well, the original complaint was about the new subscription policy, and they’ve reversed it. While I don’t think that’s all they need to do, it’s a start for sure. It’s more than I thought they would.
I guess a “thank you for listening” is in order. I’m sure they are thinking about the rest of this, but you can’t expect them to make decisions on this type of thing in days or even weeks.
Paul
I participated in the SW survey. It did not ask any of the important questions. It seemed like the author of the survey has never used Solidworks.
How nice of Solidworks to not increase the penalty. The existance of a penalty is the real issue. The payment for subscription fees for years missed is another penalty with a different name.
Users who do not maintain the annual subscription are allready dissatisfied with something; Maybe quality, service, value, or performance. These customers may not need much more to convince them to change to another system.
Matt-
Congratulations.
Thanks to your leadership, SolidWorks has reacted in a positive way.
SolidWorks, please acknowledge and thank Matt Lombard.
Devon T. Sowell
http://www.3-ddesignsolutions.com
Matt,
Hopefully the only person you alienated within SolidWorks is Mr. Welch, everyone else should be thanking you. By hosting this discussion you performed a valuable service as a customer advocate. Your actions should help SolidWorks in the long run.
I don’t hold out much hope for Mr. Welch learning any lessons since he created the firestorm and just kept adding fuel to the fire each time he talked down to us, his customers.
I would love to see a copy of the SolidWorks “annual independent satisfaction survey” and the results Mr. Welch keeps referring to, because they sure seem skewed.
Wow
Bad decision reversed. Customer comes out on top, in getting their views listened to. There’s strength in numbers and making a noise.
I don’t think this would happen with any other CAD vendor because the users aren’t so passionate and perhaps more importantly, so well connected – and vocal.
Nice job to all.. There’s power when there’s a true community.
Al Dean
Now all we need is to mobilise the users in the UK to get the prices and terms the same as USA Al
I wonder how many UK users on Standard would opt for Premium if they could buy at USA levels?