Software as a Service (SaaS) – What is it?

Blackboxx revolutionizes how wine is sold online. The secret the value of Blackboxx lies in understanding it’s delivery via “Software as a Service”.

What is Software as a Service (SaaS)?

BlackBoxx delivers value under a model known as ‘software as a service’ (SaaS) – also called “on demand software”. This is a subscription where software (and it’s associated data) are centrally hosted and accessed via the Internet – also called the “cloud”.

SaaS has become a the dominant delivery model for modern business applications, for such basic functions as accounting (eg: QuickBooks), communications (eg: Gmail), customer relationship management (eg: Salesforce), business applications (eg: Google Docs) – and now, wine clubs and ecommerce software (Blackboxx).

A SaaS application is hosted centrally, so new features appear without causing customers the inconvenience of physically installing new software. This means that frequent, seamless updates can be delivered with new fixes and features, and clients always enjoy the software’s latest, best version. It also ensures that client data is constantly backed up, securely, and accessible from multiple locations or computing devices.

What is SaaS’s biggest advantage? Zero Capital Costs

The biggest advantage to using SaaS-delivered software is that it allows businesses to avoid the high capital cost usually associated with buying software. Like other SaaS products, Blackboxx has only a nominal fee to start using the software and then a recurring pay-per-use transaction fee. It makes sense to only acquire resources when needed, and only pay for what is used. Don’t tie up cash in capital expenditures and operating expenses for software!

So what does it cost?

Blackboxx charges a per-transaction fee for successful wine club and ecommerce transaction. The per-transaction fee is between $1.49 to $3.49, depending on the number of transactions recorded per quarter; the larger total number of transactions, the lower the cost for individual transactions.

Most Blackboxx clients – such as wineries, retail stores and wholesale distributors – prefer the flat transaction fee approach. And, though a flat fee may impact smaller ecommerce transactions, it actually provides a strong incentive to move to recurring purchases. And that’s good news, because recurring purchases are proven to quickly increase revenue and profit.

Why is SaaS a smart move for wine sellers?

Along with freeing up initial-purchase cash, the SaaS model moves the costs of IT maintenance and software upgrades away from users and back to the software provider, where it belongs.

SaaS’ transparent technology and easily-understood cost structure allows wineries and retail stores to fully understand the costs and benefits around capturing different segments of the ecommerce market – enabling better marketing and business growth.

Let’s tumble some numbers:

Profit – Why focus on selling one bottle of wine for, on average, $2 – $4 transaction profit, when a SaaS-driven, recurring wine club transaction can enjoy a profit of $25 to $30 per four-bottle package due to efficiencies captured with batch processing? When the SaaS-driven club transaction delivers 3x to 4x times the per-bottle profit, the choice is clear.

Cost clarity – In a wine business, it can be hard to really know where profit lies. SaaS shines a strong light on the previously invisible administrative and technology costs associated with processing many small ecommerce orders. SaaS strips away the mystery and makes it simple to articulate costs and build up profits.

Business intelligence, or, are you making money?

If your business cannot profitably use Blackboxx to enable it’s ecommerce (including the $1.49 to $3.49 transaction cost), then it’s certain that your business should not sell online at all, no matter what technology is used.

Blackboxx puts enormous business power into the hands of wine sellers, and revolutionizes how wine is sold online.