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Quote_Medivest-Sigma-01082024V2.docx

Document

This is a sample quote from a company I am currently with.

The quote provided in the document outlines the terms and pricing for an "Ambulance Booking Mobile Application Project" for Medivest, managed by Sigma Info Analytics Sdn. Bhd. Here are the primary points:

Project Scope:
- Client, Driver, and Admin Panels: Development includes a mobile app for clients, a mobile app for drivers, and a web app for administrative functions.
- Interactions and Integrations: The system will facilitate data exchange among various panels and relevant stakeholders.
Pricing Structure:
- 2024 Initial Development Cost: RM350,000 as a one-time fee.
- Monthly Subscription: RM50,000 per month starting October 2024 after the successful UAT.
- Additional Usage Charges: RM1,000 for every additional 100 trips beyond the base of 2,000 trips/month.
- Estimated Total for 2024: RM530,000, including SST.
2025 and Subsequent Years:
- Subscription Cost: RM600,000 per annum.
- Maintenance & Support: 30% of the initial development cost (RM105,000 per year).
- Rebate Clause: A rebate of RM105,000 per year if deals with three additional companies are secured.
- Final Total for Subsequent Years: RM636,000, including SST.
Terms:
- Payment Terms: Monthly payments within 14 days of invoice.
- Additional Costs: Outstation and accommodation costs for business trips can be borne by Medivest.

This quotation is valid for 14 days from the quotation date, August 1, 2024.

This is from a potential partner: Here the pricing structure if your company become our integrator/reseller or white label AP a) Reseller/Integrator: Onboarg fee: RM4,500 one off (can request to waive, promotion for MY company) Minimum subscription fee for 60K docs with unlimited legal entity (send and/or receive) : RM11,550 yearly b) Whitelabel AP (peppol own digital certificate) and LHDNM own (digital certificate) Onboarding fee: RM4,500 one off (can request to waive, promotion for MY company) Minimum subscription fee for 60K docs with unlimited legal entity (send and/or receive) : RM11,550 yearly LHDNM own cert : RM4,500 yearly Peppol own cert : RM4,500 yearly Charging only on a yearly basis. Attached the pricing table for reference. Regards, Zamri Osman Country Manager Malaysia mobile +6019-2299015

This pricing proposal outlines two main partnership options for integrator/reseller or white-label access point (AP) services, as well as associated fees for digital certificates, if your company partners with them.

Pricing Structure Overview:

Option A - Reseller/Integrator:
- Onboarding Fee: RM4,500 (one-time, with potential for waiver as a promotional offer for your company).
- Minimum Subscription Fee: RM11,550 per year, covering up to 60,000 documents with unlimited legal entity transactions (both sending and receiving).
Option B - White-Label AP:
- Onboarding Fee: RM4,500 (one-time, waiver available under the promotion).
- Minimum Subscription Fee: RM11,550 per year for 60,000 documents with unlimited legal entity transactions.
- Digital Certificate Fees:
  - LHDNM Certificate: RM4,500 per year.
  - Peppol Certificate: RM4,500 per year.
Billing Cycle:
- All charges are applied on an annual basis.

This proposal, led by Zamri Osman, the Country Manager for Malaysia, provides a flexible structure, allowing your company to operate as either a reseller or a white-label provider with digital certificate options as required.

This is what Zamri Osman mentioned further: Kalau bayar kat Storecove anggaran MYR 11550 + MYR 4500 + MYR 4500= RM 20550 setahun Bayar peppol membership dlm euro 2825 Kalau white label lhdnm sahaja hanya perlu bayar MYR 4500 setahun Dan digital certicate LHDN kena beli dgn pos digicert MYR 1500 mcm tu Please design a quotation from Sigma to any potential customer based on these information so that Sigma will still make a decent profit AND pay commission to me and another coworker. Provide two separate quotes for the two options.

Below are two sample quotes that Sigma can offer to potential customers based on the provided information, structured to ensure a profit margin and to include a commission for you and your coworker. Each quote covers the two options: Reseller/Integrator and White-Label AP.

QUOTATION

From: Sigma Info Analytics Sdn Bhd
To: [Customer Name/Organization]
Date: [Today's Date]
Validity: 14 days

1. Option A: Reseller/Integrator

Onboarding Fee: RM6,500 (includes RM2,000 profit and commission allowance)
Minimum Annual Subscription (60,000 documents): RM15,000 per year
(includes RM11,550 base cost + RM3,450 margin for profit and commission)
Annual Total: RM21,500
(includes profit for Sigma and commission)

Summary for Reseller/Integrator Option:

Item	Unit Price (RM)	Quantity	Total (RM)
Onboarding Fee	6,500	1	6,500
Annual Subscription Fee	15,000	1	15,000
Total			21,500

2. Option B: White-Label AP (Peppol + LHDNM Certificates)

Onboarding Fee: RM6,500 (includes RM2,000 profit and commission allowance)
Minimum Annual Subscription (60,000 documents): RM15,000
Peppol Certificate Fee: RM6,000 per year
(includes RM4,500 base cost + RM1,500 margin for profit and commission)
LHDNM Certificate Fee: RM6,000 per year
(includes RM4,500 base cost + RM1,500 margin for profit and commission)
Peppol Membership Fee (paid in euros; approximate in MYR): RM3,500
Annual Total: RM37,000

Summary for White-Label AP Option (Peppol + LHDNM Certificates):

Item	Unit Price (RM)	Quantity	Total (RM)
Onboarding Fee	6,500	1	6,500
Annual Subscription Fee	15,000	1	15,000
Peppol Certificate	6,000	1	6,000
LHDNM Certificate	6,000	1	6,000
Peppol Membership (approx. MYR)	3,500	1	3,500
Total			37,000

Additional Notes:

Commissions: Allocated within the additional profit margin, shared between Zamri Osman and another coworker.
Validity: This quotation is valid for 14 days from the issuance date.
Terms: Payments are billed annually in advance.

This structure allows Sigma to make a reasonable profit, covering the original fees and digital certificate costs, while accommodating commissions for you and your coworker.

As a reseller, we get to charge the client per transaction. One transaction will cost Sigma around 20 sen, MYR. The onboarding fee can be waived but it has not been confirmed yet. Suggest how much should we charge the customer, what should be our charge structure to the customer so that it'll be competitive and will interest small clients. This is for option a (as a reseller or systems integrator).

To make the pricing attractive for small clients while ensuring a sustainable profit margin, I recommend implementing a tiered transaction-based pricing model with flexible onboarding terms and low entry barriers. This approach appeals to smaller clients who may have unpredictable volumes and need cost control.

Suggested Pricing Structure for Option A: Reseller/Integrator

1. Transaction-Based Pricing (Flexible per-transaction rate)

Cost to Sigma per transaction: RM0.20
Recommended Customer Charge per Transaction: RM0.50 (for a 60% gross margin after costs)

Breakdown:

Transaction rate of RM0.50 gives Sigma a margin of RM0.30 per transaction.
No volume commitment required for entry-level clients, making it more accessible.

2. Volume Discounts for Larger Monthly Transaction Volumes

Offering tiered rates based on transaction volumes can encourage higher usage while reducing per-transaction costs for clients with larger volumes. Here’s a tiered rate structure that would scale based on monthly transaction volume:

Monthly Transactions	Rate per Transaction (RM)	Sigma's Cost (RM)	Margin per Transaction (RM)
Up to 1,000 transactions	0.50	0.20	0.30
1,001 - 5,000	0.45	0.20	0.25
5,001 - 10,000	0.40	0.20	0.20
10,001+	0.35	0.20	0.15

This model rewards higher transaction volumes, appealing to both smaller and mid-sized clients by reducing costs as they scale.

3. Optional Annual Subscription Fee (for clients preferring a predictable cost structure)

Annual Subscription for 60,000 Transactions: RM12,000
(Equivalent to RM0.20/transaction but provides Sigma RM0.10 margin on the annual amount)

This option could be offered to clients as a fixed annual fee instead of a per-transaction charge, allowing them to control costs without worrying about fluctuating usage levels. This would be particularly attractive for clients who prefer budgeting on a yearly basis or have a fairly consistent transaction volume.

4. Onboarding Fee (Flexible or Promotional Waiver)

Standard Onboarding Fee: RM4,500 (with flexibility to waive partially or fully for certain clients or during promotional periods)
Optional Waiver Offer: Promote that the onboarding fee is discounted or waived for clients committing to an annual subscription or a specific transaction volume.

By offering a conditional waiver (e.g., waive onboarding for an annual subscription), Sigma can incentivize more substantial commitments while remaining competitive.

Pricing Strategy Summary

Feature	Option	Client Benefit
Transaction Rate	RM0.50 per transaction (up to 1,000)	Competitive entry cost for low-volume users
Volume Discounts	Reduced rates at higher volumes	Lower costs as transaction volume increases
Annual Subscription	RM12,000 for up to 60,000 transactions	Fixed pricing for clients with steady needs
Onboarding Fee	RM4,500 (with waiver options)	Option to waive with annual subscription

This structure keeps the cost accessible for small clients, provides growth incentives, and ensures a healthy margin for Sigma to cover costs, provide commissions, and remain competitive in the market.

Does that include the profit to Sigma and commission the two of us?

Let's revise the structure to ensure Sigma’s profit and a commission for both you and your coworker. I'll adjust the margins and add a specific commission allocation to each component.

Revised Pricing Structure for Option A: Reseller/Integrator (Including Profit and Commission)

1. Transaction-Based Pricing with Commission and Profit

Cost to Sigma per transaction: RM0.20
Customer Charge per Transaction: RM0.60
- Sigma Profit per Transaction: RM0.20 (after covering costs and commissions)
- Commission per Transaction: RM0.10 (split as RM0.05 each for you and your coworker)

Breakdown:

This charge of RM0.60 per transaction covers:
- RM0.20 for Sigma’s cost
- RM0.10 commission (RM0.05 each for both commission recipients)
- RM0.20 for Sigma’s profit

2. Volume Discounts with Profit and Commission for Higher Monthly Transactions

To attract higher-volume clients, we’ll maintain a tiered structure, but with built-in profit and commission at each tier level.

Monthly Transactions	Rate per Transaction (RM)	Sigma’s Cost (RM)	Profit per Transaction (RM)	Commission (RM)
Up to 1,000 transactions	0.60	0.20	0.20	0.10
1,001 - 5,000	0.55	0.20	0.15	0.10
5,001 - 10,000	0.50	0.20	0.10	0.10
10,001+	0.45	0.20	0.05	0.10

Commission is consistent at RM0.10 per transaction at all tiers, split as RM0.05 each.

3. Annual Subscription Option with Built-in Commission and Profit

Annual Subscription for 60,000 Transactions: RM15,000
- Base Cost to Sigma: RM12,000 (RM0.20 per transaction for 60,000 transactions)
- Total Sigma Profit: RM2,000 (over the year)
- Annual Commission: RM1,000 (split as RM500 each for both commission recipients)

Breakdown:

This fixed annual price of RM15,000 covers:
- RM12,000 base cost to Sigma
- RM2,000 annual profit for Sigma
- RM1,000 annual commission split for both recipients

4. Onboarding Fee with Optional Waiver

Standard Onboarding Fee: RM6,500
- Sigma Profit: RM2,000 (if charged fully)
- Commission on Onboarding: RM500 (RM250 each if applicable)
Waiver Offer: Consider offering a conditional waiver for clients choosing the annual subscription or reaching a specified transaction volume.

Final Pricing Summary (Including Sigma Profit and Commission Allocation)

Feature	Option	Total Charge (RM)	Sigma Profit (RM)	Commission (RM)
Transaction Rate	RM0.60 per transaction	0.60	0.20	0.10 (split at RM0.05 each)
Volume Discount	Scaled rate for higher volumes	0.45 - 0.60	0.05 - 0.20	0.10 per transaction split
Annual Subscription	60,000 transactions	15,000	2,000	1,000 per year (split)
Onboarding Fee	Standard RM6,500 (waiver option)	6,500	2,000	500 (if not waived; split)

This structure not only provides Sigma with a competitive edge and a healthy profit margin but also ensures a consistent commission for you and your coworker across different pricing models.

What if Storecove did not waive the onboarding fee?

If Storecove does not waive the RM4,500 onboarding fee, we need to adjust the customer-facing onboarding fee to ensure Sigma’s profitability and commission structure without eroding the margin.

Revised Pricing with Non-Waived Onboarding Fee

Given Storecove's onboarding charge, Sigma’s onboarding fee should cover this cost plus an additional margin for profit and commission. Here’s a revised structure that accounts for this scenario:

1. Adjusted Onboarding Fee

Customer Onboarding Fee: RM7,500
- Breakdown:
  - RM4,500 goes directly to cover Storecove’s onboarding fee.
  - Sigma Profit: RM2,000
  - Commission: RM1,000 (split RM500 each for you and your coworker).

This approach keeps the onboarding fee competitive while ensuring Sigma covers external costs, achieves a profit margin, and provides commission.

Updated Pricing Structure Summary with Non-Waived Onboarding Fee

Feature	Option	Total Charge (RM)	Sigma Profit (RM)	Commission (RM)
Transaction Rate	RM0.60 per transaction	0.60	0.20	0.10 (split at RM0.05 each)
Volume Discount	Scaled rate for higher volumes	0.45 - 0.60	0.05 - 0.20	0.10 per transaction split
Annual Subscription	60,000 transactions	15,000	2,000	1,000 per year (split)
Onboarding Fee	Standard RM7,500	7,500	2,000	1,000 (split RM500 each)

Additional Considerations

This onboarding fee adjustment allows flexibility if Storecove enforces the onboarding charge. Clients still see a reasonable setup fee, especially if transaction costs are competitively positioned.

Now generate a sample for options a and b, option a must have two scenarios, with or without onboarding fee waiver from Storecove. Provide detailed explanation on how Sigma will earn a decent profit and can indeed pay the commission to the two of us. Finally, also generate excel files for all the quotes.

Below are sample quotations for Option A (Reseller/Integrator) with two scenarios (with and without the onboarding fee waiver from Storecove) and Option B (White-Label AP). Following the breakdown, I'll prepare the detailed explanation on Sigma's profit and commission structure, and generate Excel files for each quote.

Quotation: Option A (Reseller/Integrator)

Scenario 1: Onboarding Fee Waived by Storecove

Onboarding Fee: RM6,500 (charged to client for Sigma’s profit and commission).
Transaction-Based Pricing:
- Per Transaction: RM0.60
  - Sigma’s Cost: RM0.20 per transaction.
  - Sigma Profit: RM0.20 per transaction.
  - Commission: RM0.10 per transaction (split as RM0.05 each).
Annual Subscription Alternative:
- Annual Charge: RM15,000 for up to 60,000 transactions.
  - Sigma’s Cost: RM12,000.
  - Sigma Profit: RM2,000 per year.
  - Commission: RM1,000 per year (split as RM500 each).

Scenario 2: Onboarding Fee Not Waived by Storecove

Onboarding Fee: RM7,500 (to cover Storecove’s fee plus Sigma’s profit and commission).
- Breakdown:
  - Storecove’s Onboarding Fee: RM4,500.
  - Sigma Profit: RM2,000.
  - Commission: RM1,000 (split as RM500 each).
Transaction-Based Pricing (same as Scenario 1):
- Per Transaction: RM0.60.
- Annual Subscription Alternative: RM15,000 for up to 60,000 transactions.

Quotation: Option B (White-Label AP)

Onboarding Fee: RM7,500 (with Sigma profit and commission as in Scenario 2).
Transaction-Based Pricing:
- Per Transaction: RM0.60 for up to 60,000 transactions.
- Additional Digital Certificates:
  - LHDNM Certificate: RM6,000 (RM4,500 cost + RM1,500 for profit and commission).
  - Peppol Certificate: RM6,000 (same breakdown as LHDNM).
- Peppol Membership Fee: RM3,500 (for external Peppol membership costs in euros).

Explanation of Profit and Commission Structure

Transaction-Based Pricing Profit:
- RM0.60 per transaction charges yield RM0.20 profit for Sigma per transaction after covering costs.
- A consistent RM0.10 commission per transaction ensures that each transaction generates value for Sigma while paying commissions to you and your coworker.
Annual Subscription Profit:
- At RM15,000 annually, Sigma’s profit is RM2,000 after covering all transaction costs.
- A commission of RM1,000 per year provides a stable income stream for commission earners, encouraging long-term client commitment.
Onboarding Fee Profit:
- When Storecove’s onboarding is not waived, the client charge of RM7,500 provides RM2,000 profit for Sigma and RM1,000 for commission, covering costs while maintaining flexibility for promotions.

Each pricing model ensures Sigma earns a solid profit margin while providing a reliable commission allocation, making the arrangement sustainable and attractive for both the company and commission recipients.

Excel File Preparation

I will now create Excel files for each quote (Option A: Scenario 1 and 2, and Option B).

python
Always show details
import pandas as pd

# Define the data for each scenario

# Scenario 1: Option A (Reseller/Integrator) with Onboarding Fee Waived
data_scenario_1 = {
    "Description": ["Onboarding Fee", "Per Transaction Fee", "Annual Subscription (up to 60,000 transactions)"],
    "Unit Cost (RM)": [6500, 0.60, 15000],
    "Profit Allocation": ["2,000 Profit, 1,000 Commission", "0.20 Profit, 0.10 Commission per transaction", "2,000 Profit, 1,000 Commission"],
    "Notes": ["Onboarding fee charged to client but waived by Storecove", "Per transaction rate for flexible pricing", "Fixed annual rate for subscription option"]
}

# Scenario 2: Option A (Reseller/Integrator) without Onboarding Fee Waiver
data_scenario_2 = {
    "Description": ["Onboarding Fee", "Per Transaction Fee", "Annual Subscription (up to 60,000 transactions)"],
    "Unit Cost (RM)": [7500, 0.60, 15000],
    "Profit Allocation": ["2,000 Profit, 1,000 Commission", "0.20 Profit, 0.10 Commission per transaction", "2,000 Profit, 1,000 Commission"],
    "Notes": ["Onboarding fee includes Storecove's RM4,500 fee", "Per transaction rate for flexible pricing", "Fixed annual rate for subscription option"]
}

# Option B: White-Label AP
data_option_b = {
    "Description": ["Onboarding Fee", "Per Transaction Fee", "Annual Subscription (up to 60,000 transactions)", 
                    "LHDNM Certificate", "Peppol Certificate", "Peppol Membership Fee"],
    "Unit Cost (RM)": [7500, 0.60, 15000, 6000, 6000, 3500],
    "Profit Allocation": ["2,000 Profit, 1,000 Commission", "0.20 Profit, 0.10 Commission per transaction", "2,000 Profit, 1,000 Commission",
                          "1,500 Profit, 500 Commission", "1,500 Profit, 500 Commission", "0 Profit (pass-through cost)"],
    "Notes": ["Onboarding fee with added profit and commission", "Per transaction rate for flexible pricing", 
              "Fixed annual rate for subscription option", "Includes profit and commission", "Includes profit and commission", 
              "Pass-through cost in euros"]
}

# Create DataFrames
df_scenario_1 = pd.DataFrame(data_scenario_1)
df_scenario_2 = pd.DataFrame(data_scenario_2)
df_option_b = pd.DataFrame(data_option_b)

# Write to Excel
with pd.ExcelWriter("/mnt/data/Sigma_Quotation_Options.xlsx") as writer:
    df_scenario_1.to_excel(writer, sheet_name="Option A - Scenario 1", index=False)
    df_scenario_2.to_excel(writer, sheet_name="Option A - Scenario 2", index=False)
    df_option_b.to_excel(writer, sheet_name="Option B - White-Label AP", index=False)

"/mnt/data/Sigma_Quotation_Options.xlsx"

Result

'/mnt/data/Sigma_Quotation_Options.xlsx'

I have created the Excel file with detailed quotes for each scenario. You can download it using the link below:

Download Sigma Quotation Options

Each sheet in the file includes descriptions, unit costs, profit allocations, and additional notes for each option, ensuring transparency in profit and commission distribution. Let me know if further adjustments are needed!

Now generate the actual quotes for each to customers

Below are the actual customer-facing quotes for each scenario and option. Each quote is structured to highlight the service scope, pricing, and value, ensuring a professional presentation to potential clients.

Quote: Option A (Reseller/Integrator) – Scenario 1 (With Onboarding Fee Waiver)

SIGMA INFO ANALYTICS SDN BHD
Suite 33-01, Menara Keck Seng
Jalan Bukit Bintang, 55100 Kuala Lumpur

Quotation for Reseller/Integrator Option (Onboarding Fee Waived)
Date: [Today's Date]
Validity: 14 Days

Scope of Services

Onboarding Services
- Includes setup, configuration, and initial integration support.
Transaction-Based Pricing
- Allows flexibility for clients with variable monthly transactions.
Annual Subscription Option
- For clients preferring a predictable, fixed cost.

Pricing Details

Description	Unit Cost (RM)	Notes
Onboarding Fee	6,500	Waived fee from Storecove; includes setup profit and commission
Per Transaction Fee	0.60	Charged per transaction with flexible monthly billing
Annual Subscription (up to 60,000 transactions)	15,000	Fixed yearly rate for subscription option

Total Cost Outline (Sample Calculation)

Onboarding Fee: RM6,500
Monthly Transactions Example (up to 1,000): RM0.60 per transaction
Annual Subscription (Alternative): RM15,000 per year

This pricing model is designed to provide cost flexibility and support various transaction volumes.

Quote: Option A (Reseller/Integrator) – Scenario 2 (Without Onboarding Fee Waiver)

SIGMA INFO ANALYTICS SDN BHD
Suite 33-01, Menara Keck Seng
Jalan Bukit Bintang, 55100 Kuala Lumpur

Quotation for Reseller/Integrator Option (Without Onboarding Fee Waiver)
Date: [Today's Date]
Validity: 14 Days

Scope of Services

Onboarding Services
- Includes setup, configuration, and initial integration support.
Transaction-Based Pricing
- Offers flexible pricing to accommodate variable monthly transaction volumes.
Annual Subscription Option
- For clients preferring a predictable, fixed cost.

Pricing Details

Description	Unit Cost (RM)	Notes
Onboarding Fee	7,500	Covers Storecove fee, with added profit and commission
Per Transaction Fee	0.60	Charged per transaction with flexible monthly billing
Annual Subscription (up to 60,000 transactions)	15,000	Fixed yearly rate for subscription option

Total Cost Outline (Sample Calculation)

Onboarding Fee: RM7,500
Monthly Transactions Example (up to 1,000): RM0.60 per transaction
Annual Subscription (Alternative): RM15,000 per year

This pricing approach covers all setup costs and supports diverse transaction volumes.

Quote: Option B (White-Label AP)

SIGMA INFO ANALYTICS SDN BHD
Suite 33-01, Menara Keck Seng
Jalan Bukit Bintang, 55100 Kuala Lumpur

Quotation for White-Label AP Option
Date: [Today's Date]
Validity: 14 Days

Scope of Services

Onboarding Services
- Setup, configuration, and initial integration support.
Transaction-Based Pricing
- Allows flexible pricing for different transaction volumes.
Annual Subscription Option
- Fixed pricing for consistent, high-volume clients.
Additional Digital Certificates
- Required for LHDNM and Peppol transactions.

Pricing Details

Description	Unit Cost (RM)	Notes
Onboarding Fee	7,500	Covers Storecove fee with profit and commission
Per Transaction Fee	0.60	Charged per transaction with flexible monthly billing
Annual Subscription (up to 60,000 transactions)	15,000	Fixed yearly rate for subscription option
LHDNM Certificate	6,000	Covers LHDNM certificate fee with added profit and commission
Peppol Certificate	6,000	Covers Peppol certificate fee with added profit and commission
Peppol Membership Fee	3,500	Direct pass-through cost in euros

Total Cost Outline (Sample Calculation)

Onboarding Fee: RM7,500
Monthly Transactions Example (up to 1,000): RM0.60 per transaction
Annual Subscription (Alternative): RM15,000 per year
Additional Certificates (if required): RM6,000 each for LHDNM and Peppol

This pricing ensures flexibility and compliance with digital certificate requirements for a complete White-Label AP solution.

Each quote provides structured, competitive options tailored to different client needs, while ensuring a sustainable profit for Sigma and fair commissions. Let me know if you need further customization for these quotes.

But then, should Sigma charge the customers PEPPOL fees though?

Charging customers for PEPPOL membership fees depends on Sigma’s business strategy and the target customer’s needs:

Transparency and Pass-Through Cost:
- If Sigma wants to maintain transparency, it can charge customers the PEPPOL membership fee as a pass-through cost, showing it separately on the quote. This approach is standard if the customer benefits directly from PEPPOL membership, such as obtaining a unique identifier for PEPPOL network transactions.
- Some customers appreciate knowing exactly where costs are allocated, which may build trust.
Absorbing the Cost as Part of Service Fee:
- Alternatively, Sigma can absorb the PEPPOL membership fee within the transaction or subscription fees if they wish to simplify the customer’s pricing experience.
- This approach makes the offer more attractive, especially to smaller clients who may be deterred by added line-item fees.
Offering It as an Optional Charge:
- Sigma could offer the PEPPOL membership fee as an optional cost for customers who wish to register independently on the PEPPOL network.
- For clients requiring direct access to the PEPPOL network, Sigma could assist in registering while charging a service fee to manage the process.

In general, small to medium clients might prefer a bundled or optional approach, while larger clients, who often understand the benefits of direct network access, may be open to a separate charge. It ultimately depends on whether direct PEPPOL access is crucial to the client’s operations or if Sigma can manage this on their behalf effectively.

Are the customers required by LHDN and MDEC for PEPPOL accreditation though? I thought it was only for service providers?

In Malaysia, PEPPOL accreditation is required only for service providers, not for individual businesses or end-users. The Malaysia Digital Economy Corporation (MDEC), serving as the PEPPOL Authority, is responsible for accrediting PEPPOL Service Providers (SPs) and PEPPOL-Ready Solution Providers (PRSPs). These accredited entities facilitate businesses in connecting to the PEPPOL network for e-invoicing purposes.

MDEC

Businesses are not mandated to obtain PEPPOL accreditation. Instead, they can utilize the services of accredited SPs or PRSPs to send and receive e-invoices through the PEPPOL network. This approach simplifies the process for businesses, allowing them to comply with e-invoicing requirements without undergoing the accreditation process themselves.

Therefore, when structuring your pricing and service offerings, it's important to note that your clients do not need to bear the costs associated with PEPPOL accreditation. Your role as an accredited service provider is to offer them seamless access to the PEPPOL network, ensuring compliance with MDEC and LHDN regulations.

So I believe Sigma shouldn't be charging our customers for PEPPOL and it should not be in our quotation.

You're correct—since PEPPOL accreditation costs are only required for service providers (not for end-user customers), it’s best for Sigma to omit these fees from customer-facing quotes. This approach keeps the pricing straightforward and avoids unnecessary charges that could deter smaller clients.

Instead, Sigma’s quotes should focus on:

Onboarding Fees: Adjusted as needed for profit and commission.
Transaction or Subscription Fees: Covering per-transaction rates or an annual subscription.
Optional Digital Certificates: Only if required by the client for their unique compliance needs (such as LHDNM certificates), which can be clearly itemized.

This streamlined approach provides a more appealing offer to customers, focusing solely on the services they use without passing on provider-specific operational costs. Let me know if you'd like me to adjust the sample quotes accordingly!

Regenerate the quotation please

Here are the revised quotations for Option A (Reseller/Integrator) and Option B (White-Label AP), with the PEPPOL membership fees removed. These quotes now focus solely on the costs relevant to the customer without passing on PEPPOL-specific charges that only impact Sigma.

Quote: Option A (Reseller/Integrator)

SIGMA INFO ANALYTICS SDN BHD
Suite 33-01, Menara Keck Seng
Jalan Bukit Bintang, 55100 Kuala Lumpur

Quotation for Reseller/Integrator Option
Date: [Today's Date]
Validity: 14 Days

Scope of Services

Onboarding Services
- Includes setup, configuration, and initial integration support.
Transaction-Based Pricing
- Flexible per-transaction pricing for clients with variable monthly volumes.
Annual Subscription Option
- Fixed annual pricing option for clients preferring a predictable cost structure.

Pricing Scenarios

Scenario 1: With Onboarding Fee Waiver from Storecove

Description	Unit Cost (RM)	Notes
Onboarding Fee	6,500	Waived Storecove fee; Sigma’s setup profit and commission included
Per Transaction Fee	0.60	Charged per transaction with flexible monthly billing
Annual Subscription (up to 60,000 transactions)	15,000	Fixed annual rate for subscription option

Scenario 2: Without Onboarding Fee Waiver from Storecove

Description	Unit Cost (RM)	Notes
Onboarding Fee	7,500	Covers Storecove fee and Sigma’s setup profit and commission
Per Transaction Fee	0.60	Charged per transaction with flexible monthly billing
Annual Subscription (up to 60,000 transactions)	15,000	Fixed annual rate for subscription option

Total Cost Outline (Sample Calculation)

Scenario 1 Onboarding Fee: RM6,500
Scenario 2 Onboarding Fee: RM7,500
Monthly Transaction Charge (up to 1,000): RM0.60 per transaction
Annual Subscription Option: RM15,000 per year

This flexible pricing model supports various transaction volumes and ensures transparency and value.

Quote: Option B (White-Label AP)

SIGMA INFO ANALYTICS SDN BHD
Suite 33-01, Menara Keck Seng
Jalan Bukit Bintang, 55100 Kuala Lumpur

Quotation for White-Label AP Option
Date: [Today's Date]
Validity: 14 Days

Scope of Services

Onboarding Services
- Full setup and configuration, including white-label branding.
Transaction-Based Pricing
- Flexible pricing to support variable transaction volumes.
Annual Subscription Option
- Fixed pricing option for predictable, high-volume clients.
Additional Digital Certificates
- Required only for LHDNM compliance or specific client needs.

Pricing Details

Description	Unit Cost (RM)	Notes
Onboarding Fee	7,500	Covers Storecove’s fee, Sigma’s profit, and commission
Per Transaction Fee	0.60	Charged per transaction with flexible monthly billing
Annual Subscription (up to 60,000 transactions)	15,000	Fixed annual rate for subscription option
LHDNM Certificate	6,000	Covers LHDNM certificate fee with profit and commission
Peppol Certificate	Not Charged	Not applicable to customer; covered by Sigma

Total Cost Outline (Sample Calculation)

Onboarding Fee: RM7,500
Monthly Transaction Charge (up to 1,000): RM0.60 per transaction
Annual Subscription Option: RM15,000 per year
Additional LHDNM Certificate (if required): RM6,000

This pricing model simplifies customer costs, providing flexibility and compliance options while excluding any PEPPOL-related fees that are only relevant to Sigma.

These revised quotes are designed to present clear, customer-focused pricing while ensuring profitability and commission allocation for Sigma. Let me know if you need any further adjustments!

So the only changes that were made was on the white-label?

Yes, the main change was in Option B (White-Label AP), where the PEPPOL membership fee was removed from the customer-facing quotation. This is because, as a service provider, Sigma would handle PEPPOL network costs without passing them directly to customers.

For Option A (Reseller/Integrator), no changes were made since it didn’t originally include PEPPOL-specific fees, so it remained as is.

To summarize:

Option A: Remains unchanged, with scenarios for onboarding fee waiver or non-waiver.
Option B: Now excludes the PEPPOL membership fee, simplifying customer costs.

Let me know if there’s anything further you’d like modified!

Now generate a dialog for me to explain this to the team. Include examples, anecdotes, storytelling, analogies, detailed explanations on each item, how and how much sigma will earn and will be able to pay commission.

Here's a sample dialog for you to explain the updated quotation approach and pricing structure to your team. This dialog incorporates storytelling, analogies, and clear examples to help illustrate each item, how Sigma will earn profit, and how commissions will be managed.

Meeting with the Sigma Team

Desiree: "Alright, team, today I want to go over our updated quotation structure, especially the changes we’ve made regarding the PEPPOL fees and how each part of our pricing is designed to support Sigma's profitability and pay commissions fairly. Let’s dive in!"

Setting the Context

Imagine you’re explaining the purpose behind the changes with an analogy.

Desiree: "Think of us as a bridge between the clients and the complex world of PEPPOL and LHDNM requirements. Clients don’t necessarily need to know every detail about what’s under the bridge, like our membership and certification fees for PEPPOL. All they want is a smooth, easy path across it. So, we’ve decided not to pass the PEPPOL membership costs directly onto our customers because they’re not mandatory for them—they’re costs we absorb to be certified as a provider. This keeps our offering simple and focused only on what benefits them directly."

Explaining Option A: Reseller/Integrator Pricing

Provide a straightforward explanation of each component, linking each one to value for both Sigma and the client.

Desiree: "Let’s start with Option A, our Reseller/Integrator package, where we manage onboarding and transactions. We’ve kept this as customer-friendly as possible with a simple structure."

Onboarding Fee: “First, there’s the onboarding fee, which is initially set at RM6,500 if Storecove waives their own onboarding fee. In this case, our clients see a straightforward setup cost, but it actually includes a built-in profit for Sigma and a commission amount of RM1,000. This means RM500 goes to each of you as part of the commission structure."
- Example: “Imagine a client who’s a small company just starting with e-invoicing. They appreciate a clear setup fee without unexpected add-ons, and RM6,500 is manageable for them. If Storecove doesn’t waive the fee, we charge RM7,500, covering their costs, our profit, and your commission.”
Transaction-Based Pricing: "Now for transactions, we charge RM0.60 per transaction. Since it costs Sigma RM0.20 per transaction, we earn RM0.20 per transaction as profit and allocate RM0.10 as commission. This way, the more transactions a client processes, the more profit Sigma makes, and the more commission is paid out to both of you."
- Analogy: "Think of this like a toll bridge. Every car (or transaction) that crosses adds a small fee, and each fee contributes both to Sigma’s earnings and to your commission. It’s scalable, so as clients grow, we all benefit."
Annual Subscription Alternative: "For clients preferring a predictable cost, we offer a RM15,000 annual subscription that covers up to 60,000 transactions. Here, we’ve designed it to earn Sigma RM2,000 in profit after covering our transaction costs. There’s also a built-in RM1,000 commission, so RM500 goes to each of you. This package is ideal for clients who like a fixed budget, knowing they won’t pay more unless they exceed 60,000 transactions."
- Anecdote: "I had a call with a client who wasn’t sure how much they’d use initially but loved the peace of mind a fixed price gives. This option lets us offer that while maintaining profitability."

Explaining Option B: White-Label AP Pricing (with PEPPOL Fees Removed)

Now, share the reasoning behind removing the PEPPOL fees and simplifying the quote.

Desiree: "Now let’s look at Option B, the White-Label AP. This is where we manage their onboarding and transaction processing but also offer the LHDNM compliance certificates. Originally, we had included PEPPOL membership fees, but after some research, we realized these fees aren’t required for the clients. They’re strictly a provider requirement."

Onboarding Fee: “So, we start with a RM7,500 onboarding fee that includes Storecove’s fee, profit for Sigma, and a RM1,000 commission—RM500 for each of you. The onboarding fee is fair and straightforward, covering the setup with a clear path for profitability."
Transaction-Based Pricing: "We’re also using the same RM0.60 per transaction model here, just like in Option A. Every transaction keeps Sigma profitable while maintaining commission allocation."
Digital Certificates: "Now, for clients needing LHDNM compliance, we offer the LHDNM certificate at RM6,000. This charge includes the cost of obtaining the certificate, plus a margin for Sigma's profit and a commission split. This way, clients who need specific compliance can access it without facing the PEPPOL fees, which are irrelevant to them."

How Sigma Will Earn and Pay Commissions

Summarize by showing the consistent profit and commission structure across both options.

Desiree: "So, across both options, Sigma earns a decent profit margin from onboarding, transaction fees, and, when applicable, the LHDNM certificate fees. This structure guarantees we’re covering our own costs while keeping our services competitive for clients. And importantly, every component has built-in commission allocations, so you both benefit proportionately as clients onboard and increase their usage."

Example Calculation: "If a client processes 10,000 transactions, Sigma earns RM2,000 in transaction profit and you each receive RM500 in commission. For clients on an annual subscription, Sigma clears RM2,000 in profit for the year, and you both earn RM500. This means that as Sigma grows with each client, so does your commission."

Desiree: "By removing PEPPOL fees and focusing only on what’s essential for clients, we’ve made this offer attractive, scalable, and profitable. This way, we stay competitive while rewarding your efforts as we bring in new clients and grow together."

This approach explains the rationale, pricing structure, and profit distribution, providing the team with a comprehensive understanding of the client offerings and their own benefits.

Make it casual Malaysian style

Here's a more casual, Malaysian-style approach to explaining the updated quotation structure to your team:

Desiree: "Okay, team! Today we’re going through the new pricing structure for our services, especially with that tweak on the PEPPOL fees. Jangan risau, I'll explain why we made the changes and how we still make sure Sigma gets a good profit, plus you both still get your commission, no problem!"

Starting with the Big Picture

Desiree: "So, imagine this: Sigma ni macam jambatan lah. Kita ni bridge yang sambungkan client dengan benda-benda complicated macam PEPPOL, LHDNM, semua tu. They don’t need to know every single detail, and they don’t need to pay for things yang bukan untuk diorang, like the PEPPOL membership. Itu untuk kita je, the service provider. So, to keep things clean and simple, we decided kita tak pass that cost to our customers. Instead, kita absorb it, so the client only sees what they actually guna, fair and square."

Option A: Reseller/Integrator Pricing

Desiree: "Alright, first up, Option A, Reseller/Integrator. Ini kira our basic package, kan? Here’s how it works."

Onboarding Fee: “First, we have the onboarding fee. Kalau Storecove bagi waive, we set it at RM6,500. That’s not just setup cost saja tau; ada profit untuk Sigma dalam tu, plus your commission also. So, RM1,000 dari fee ni goes as commission—RM500 each for both of you.”
- Example: “Contoh, lah, let’s say client tu small business. For them, RM6,500 nampak okay lah, tak terlalu mahal. Kalau Storecove tak waive fee tu, kita charge RM7,500, cukup untuk cover cost Storecove, kita punya profit, and still ada commission for you both.”
Transaction-Based Pricing: "Then, we charge RM0.60 per transaction. Sigma’s cost is RM0.20, so we make RM0.20 profit, and we put RM0.10 as commission—RM0.05 each. So, lagi banyak transactions client buat, lagi banyak profit masuk, lagi banyak commission korang dapat."
- Analogy: "Imagine kita ni macam toll booth. Setiap kereta yang lalu (transaction) bayar sikit-sikit, and each time, kita earn something. Bila client berkembang, commission pun sama naik."
Annual Subscription Option: "Now, untuk client yang prefer fixed cost, we offer a RM15,000 annual package for 60,000 transactions. Ni kita cover all costs, Sigma dapat RM2,000 profit, and ada RM1,000 commission yang split untuk both of you. Client yang suka budget bulanan dorang fixed ni, they’ll love this option."
- Anecdote: "Ada client hari tu call, dia risau kalau kena bayar ikut usage sebab tak tahu volume dia macam mana. Bila dia tahu ada option fixed ni, terus dia rasa lega."

Option B: White-Label AP Pricing (With PEPPOL Fees Removed)

Desiree: "Now, Option B. This one is our White-Label package. This is the more comprehensive one where kita juga bagi LHDNM certificate, if needed. Dulu ada include PEPPOL membership fee, but lepas buat research, baru tahu client tak perlu pun bayar benda tu sebab tu untuk kita je."

Onboarding Fee: “So here, onboarding is RM7,500, which covers Storecove’s charge, profit Sigma, and your RM1,000 commission. Takde hidden cost, semua terang."
Transaction-Based Pricing: "We use the same RM0.60 per transaction model macam Option A. Every transaction, Sigma dapat RM0.20 profit, RM0.10 goes to you guys."
Digital Certificates: "For clients yang nak compliance with LHDNM, kita charge RM6,000 for the certificate. Ni includes the LHDNM certificate fee, profit, and your commission. So, kalau client perlukan tu, kita charge la, kalau tak, tak payah. Straightforward."

How Sigma Earns and How Commissions Work

Desiree: "So, overall, tiap part in the pricing ada portion untuk Sigma make profit and you all dapat commission. Every transaction brings in RM0.20 profit, and RM0.10 goes as commission. Kalau client tu go for the annual RM15,000 package, Sigma dapat RM2,000, korang dapat RM1,000—so it’s sustainable and fair."

Example Calculation: "Contoh kalau client buat 10,000 transactions, Sigma dapat RM2,000 profit, and you each get RM500 commission. Kalau client on the fixed annual package, Sigma dapat RM2,000 and korang dapat RM1,000. So, bila client scale up, korang punya commission pun ikut naik!"

Desiree: "In short, bila kita remove PEPPOL cost yang bukan untuk client, pricing kita jadi lebih menarik and competitive. We’re covering our costs, earning good profit, and korang pun dapat commission yang steady. Dengan structure ni, kita boleh tackle both big and small clients while still making sure it’s worth it for everyone."

This casual, relatable style should help the team easily understand the updated structure and get on board with the strategy. Let me know if you need any further tweaks!

***

So the LHDN certs don't come free?

No, the LHDNM (Lembaga Hasil Dalam Negeri Malaysia) certificates are not free. Typically, these digital certificates need to be purchased to meet compliance requirements for e-invoicing and secure transactions with the LHDNM system.

For companies like Sigma offering white-label or integrator services, the cost of the LHDNM certificate is often an added expense, which is why it’s included in the quote as a specific item. This ensures transparency and lets clients know that this is a compliance cost rather than an additional profit driver for Sigma.

***

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Apekemendee tuuuu

Sunday, November 3, 2024

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Pricing Structure Overview:

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1. Option A: Reseller/Integrator

2. Option B: White-Label AP (Peppol + LHDNM Certificates)

Additional Notes:

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Suggested Pricing Structure for Option A: Reseller/Integrator

1. Transaction-Based Pricing (Flexible per-transaction rate)

2. Volume Discounts for Larger Monthly Transaction Volumes

3. Optional Annual Subscription Fee (for clients preferring a predictable cost structure)

4. Onboarding Fee (Flexible or Promotional Waiver)

Pricing Strategy Summary

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Revised Pricing Structure for Option A: Reseller/Integrator (Including Profit and Commission)

1. Transaction-Based Pricing with Commission and Profit

2. Volume Discounts with Profit and Commission for Higher Monthly Transactions

3. Annual Subscription Option with Built-in Commission and Profit

4. Onboarding Fee with Optional Waiver

Final Pricing Summary (Including Sigma Profit and Commission Allocation)

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Revised Pricing with Non-Waived Onboarding Fee

1. Adjusted Onboarding Fee

Updated Pricing Structure Summary with Non-Waived Onboarding Fee

Additional Considerations

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Quotation: Option A (Reseller/Integrator)

Scenario 1: Onboarding Fee Waived by Storecove

Scenario 2: Onboarding Fee Not Waived by Storecove

Quotation: Option B (White-Label AP)

Explanation of Profit and Commission Structure

Excel File Preparation

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Quote: Option A (Reseller/Integrator) – Scenario 1 (With Onboarding Fee Waiver)

Scope of Services

Pricing Details

Quote: Option A (Reseller/Integrator) – Scenario 2 (Without Onboarding Fee Waiver)

Scope of Services

Pricing Details

Quote: Option B (White-Label AP)

Scope of Services

Pricing Details

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Quote: Option A (Reseller/Integrator)

Scope of Services

Pricing Scenarios

Quote: Option B (White-Label AP)

Scope of Services

Pricing Details

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Meeting with the Sigma Team

Setting the Context

Explaining Option A: Reseller/Integrator Pricing

Explaining Option B: White-Label AP Pricing (with PEPPOL Fees Removed)

How Sigma Will Earn and Pay Commissions

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Starting with the Big Picture