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AdviceStrategy

How do you describe cloud hosting fees?2972

Regina, Saskatchewan Canada
Queen_City_3D private msg quote post Address this user
Does anyone have a script that they use to explain why there is an ongoing cost for hosting?

The majority of our scans are for real estate purposes and the agents are typically told that we'll have their models available to them until sold. I'm comfortable with that arrangement as most are sold within a few days, weeks or possibly a few months. Occasionally a house is still for sale after several months, but this is not the norm.

For businesses, however, the idea is to have the model online for an indefinite period of time.

My current tactic is to explain how the model is cloud-based which allows it to be available to individuals to view on their devices without any requirement to download any software or large files (unless they want it offline on the iPad and then I explain that there's a free app to download, plus the downloading of each model desired to be available offline). I then explain that we ourselves have cloud hosting fees that we unfortunately have to pass along to the consumer. And then I explain what those ongoing fees are which I have chosen to charge per year.

Admittedly, it's not the smoothest conversation.

I'm curious if anyone else has a better way to convey why there are ongoing costs for continued cloud hosting.
Post 1 IP   flag post
Louisville, KY
JohnLoser private msg quote post Address this user
I think you have a good handle on it. So far, I have shared basically the same information and the real estate agents understand. (In fact, they have already been on the Matterport site and understand my costs.) So far, everyone has said, "That sounds fair."

We offer 6 months of "cloud model hosting" free with the scanning service. Then, we have two hosting plans - 6 months and 12 months, with the hosting fees being non-refundable. Again, the reaction is that our pricing is fair. (As we are new to this, we will see if they still feel that way when the first "free" model hosting plans run out in 5 months.)

Take the positive approach - and you will be fine. They want your service. You are explaining it well. They will decide this is the "future - here today."
Post 2 IP   flag post
srennick private msg quote post Address this user
@Queen_City_3D I always tell my clients that the hosting fee also provides them with any available upgrades that Matterport releases, usually every quarter. Available meaning, if it is something I can easily do for them, then I will. For instance, mattertags and VR viewing.
Post 3 IP   flag post
Regina, Saskatchewan Canada
Queen_City_3D private msg quote post Address this user
@srennick very good point!
Post 4 IP   flag post
davidpylyp private msg quote post Address this user
I remind the customer the hosting is for 6 months

If they want the model to remain as a LISTING presentation sample the hosting is approximately $15 per month in 6 month blocks.
Post 5 IP   flag post
skycamguatemala private msg quote post Address this user
Does anyone knows what Would hapens to your iPad Models ones you stop paying The hosting plan????

Would The iPad check ones in a while The connections and your matter port status????

Because I am doing my scans for porfolios for architects and designers. And they would want their models for a long time, time that I don't know if I would be around with my matter port.

Also a good usage for this lawyer, he ask me to scan a house with a lot of expensive artwork, and the reason of this is for heritage reasons!!!

So each peace of work, has this button to push and get info (I don't remember now the name of this feature).

In case you can offer the same service.
Post 6 IP   flag post
Frisco, Texas
Metroplex360 private msg quote post Address this user
I don't charge for hosting because I'm super nice. I also shoot enough scans each month to offset my hosting fees -- so charging a client for hosting would be inventing a way to nickel and dime.

Now, in the future, if I theoretically hit my quota and have to open up another account -- then I might run into a problem.

I actually wish that Matterport would provide us with a reseller console so that we can, if we choose, move tours into a sub account where they get billed by Matterport and we collect a residual -- in credit possibly towards our own accounts.
Post 7 IP   flag post
Premium
Member
North Palm Beach, FL
hometakes private msg quote post Address this user
I structure mine for 60 days free hosting. Therefore, mine is automatically described in the low price that I charge to shoot a 3D Tour.I offer 90,180 or 360-day renewals with an auto-renew for 90 days unless they tell us to cancel renewal (or opt for a bigger renewal plan).

My pricing is way cheaper than most other 3D tour companies. The majority of agents want to spend the very least money that they can get away with on a listing. The average agent (not all of course) cares more about price than quality. That's not to say that we do sub-standard tours. Look at it as two identical looking cars on the outside. However, one is loaded with extras and add on's and comes with a full tank of gas, the other doesn't have any extras and comes with a 1/4 tank of gas. The Gas is the hosting part. One cost $20,000, the other $35,000. Only the few buy the $35,000 car.

I saw Matterport as a way to keep my Realtor Tour business customers with me and not so much as a large profit center and so my profit is very small on the 3D Tour aspect but I make up the money on the video and photos.

So I have two pricing structures for my 3D offerings to agents. One is for a stand alone 3D order and another if it's packaged with other services.

Here's a sample of the stand alone pricing:
Up to 1499 $199
1500 to 2999 $299
3000 to 3999 $399

Here's a sample of the packaged pricing:

0 to 1499 $99
1500 to 1999 $124
2000 to 2999 $149
3000 to 3999 $174

As you can see, it costs substantially less for packaged pricing. This encourages clients to order my 3D tours with a package. Want Mattertags? It takes extra time to add them so its an add on - remember, they want the lowest price possible. The proof is in the pudding. Since Mattertags were offered as an 'add-on' which have been on the last 20 tours we've done, no one has added them to their order. This again affirms that the majority want the lowest price. Want the tour play button? I don't offer that as an option to a packaged order as it was pointed out to me by a couple of customers who ordered packages "why would anyone want to watch a 3D tour auto play if they just watched the video"?.... Both clients said exactly the same thing. They wanted the viewer to interact with the 3D tour because it's a better experience.

We do as few as scans as possible to get the whole house covered. If say there's a room where we can just scan in the center of it we will. No need for all four corners if everything can be seen from the middle. Because of this, it takes us around 15 minutes for every 500 sq. ft of home. Therefore we are covering the cost our time and a little bit more....
Post 8 IP   flag post
Regina, Saskatchewan Canada
Queen_City_3D private msg quote post Address this user
@hometakes And how do you describe the hosting itself?

Do you say something to the effect of, "the model is viewable on almost any device and is hosted in the cloud. There are ongoing costs for that hosting and so my prices cover 60 days free hosting and additional months cost $X?"

or how do you actually describe why it isn't a one-time cost?

I find that some folks don't understand what hosting is and why once the 3D model exists why it wouldn't exist forever.
Post 9 IP   flag post
WGAN Basic
Member
New Brighton, PA
frstbubble private msg quote post Address this user
I use a licensing fee. They get 6 months wich costs x per every $500,000.00 listing price. To have it listed longer they can pay for another 6 months at half the original licensing cost. And every 6-month renewal has the original licensing price.
Post 10 IP   flag post
Premium
Member
North Palm Beach, FL
hometakes private msg quote post Address this user
I honestly haven't been asked any of those questions. I just say, includes 60 days free hosting. When the hosting is 10 days out from expiring, my system emails them and tells them that their hosting plan will renew for another 90 days (in 10 days time) unless they reply and cancel it. If it has sold or under contract, they cancel it. If it hasn't sold, most don't reply and the renewal takes place. This is the email that gets sent:

Hello [FIRST NAME LAST NAME],

Your 3D tour hosting plan will automatically renew in 10 days for a period of 90 days ($35). You don't have to do anything if you're okay with 90 days.
If you would like to extend your hosting to 180 days or 360 Days, please click here and tell us how long you'd like. 180 Days is $55 and 360 Days $79.

However, If you sold the home or the listing is contingent/pending and you do not wish to renew, you must click here and tell us that you wish to cancel the renewal. Once the hosting is cancelled. Clicking the link creates a ticket number as a cancellation reference. We cannot give refunds or credits for hosting plans.

If I had to describe it to them, I would say "I'd rather keep your initial cost as low as I can and charge you 7 cents a square foot and give you the option to choose a hosting plan rather than to just give you a years hosting plan and charge you 9 cents a square foot". "Sometimes you just want a burger and small fries and not a Big Mac and Bucket of Fries. Prices are better off low with options rather than one price fits all.
Post 11 IP   flag post
Regina, Saskatchewan Canada
Queen_City_3D private msg quote post Address this user
@hometakes What program do you use for invoicing?
Post 12 IP   flag post
Premium
Member
North Palm Beach, FL
hometakes private msg quote post Address this user
My whole ordering system is customized by my programmer....Expensive, but targeted exactly for my needs and therefore on point.....
Post 13 IP   flag post
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