Qualitum · Pricing & Commercial Guide
v2 · July 2026
Qualitum · pricing & commercial guide · v2

We don't sell seats.
We license validated sites.

Every incumbent in digital validation charges per user. That model was built for software people operate by hand. Qualitum's agents do the work, so the number of humans goes down — and a per-seat vendor gets punished for its own product working. This guide sets out the market evidence, the licence design that replaces it, the delivery and validation costing, the partner economics, and the motion that sells it.

01 — Start here

What this document is

One source of truth for how Qualitum is priced, sold, delivered and split with partners. It replaces every earlier pricing sheet, deck slide and verbal quote. Where a number elsewhere contradicts a number here, this document wins until it is formally revised.

Who it is for

Partners and resellers who have to quote, our own sellers, and anyone writing the offer documents, the portal or the contracts. It assumes you know the life-sciences validation world. It does not assume you know our model.

What it is not

Not a client-facing document. Every price here is recommended list, not a quote, and the cost and margin figures are for the people quoting — they do not go to a client or a prospect in any form.

One version

There is no partner edition and internal edition of this guide any more — there is this one. Everything in it is safe to say to a partner, including the cost and margin columns in chapter 13, which exist so the split can be checked rather than trusted.

How to use it

It is built as a guide, not a report. Pick a chapter from the contents on the left, read it end to end, then press Next at the bottom to continue. Chapters stand alone — you can read the partner model without reading the market analysis — but they are ordered so that reading straight through works as a course, and the deck and narration script are built from the same order.

If you only read three chapters

02 — How it all works gives you the whole model in ten minutes. 06 — Price list & limits has the numbers you will be asked for on every call. 12 — Go-to-market explains how a deal actually starts. Everything else is depth behind those three.

What changed from earlier versions

  • Per-site, not per-seat. Users are unlimited. The licence is bound to a site or an enterprise programme, and the fair-use envelope is counted in validation packages per year.
  • Qualitum always implements. Partners sell and support; they do not deliver. The implementation fee is split with them 50/50 anyway.
  • The pilot is paid. The free step is a ninety-minute teardown. The Proof of Value costs €20,000 and is credited against the first licence year.
  • Delivery list prices went up to fund that 50/50 split. Anything quoted from an older sheet is re-quoted before signature.
  • Every open question is closed. Chapter 16 records the seven decisions and why the alternative lost.
Prepared 29 July 2026 Currency EUR, ex VAT Prices recommended list Status v2 — final, all decisions closed
02 — The model in plain language

How the whole thing works

Before any of the detail: this is the entire commercial model, in the order money actually moves. If you can hold this chapter in your head you can hold a first call without notes.

The model in five sentences

A pharma site pays us one annual fee to run Qualitum at that site, with as many users as it likes. We build and validate the deployment ourselves, for a one-off project fee, and we keep doing that on every deal. A partner finds the client, holds the relationship and answers the day-to-day questions, and takes a share of both the licence and the project fee. Infrastructure and model tokens sit outside the licence and are usually the client's own cloud bill. Nobody buys any of this cold — they buy a free teardown, then a €20,000 Proof of Value, then a site.

The four things a client actually buys

1 · The annual licence

The right to run Qualitum at one licensed site for a year, unlimited users, with a fair-use envelope measured in validation packages. Renewable annually. Typical: €98,000. This is the recurring revenue and it is where almost all of the margin lives.

2 · The deployment project

One-off. We configure the platform to their templates, workflows, SSO and roles, and go live. One to six weeks depending on complexity. Typical: €40,000.

3 · The validation pack

One-off, per site. Their own IQ/OQ/PQ evidence for their configuration, so the deployment is usable for regulated work. Typical: €40,000. Optional in theory, never skipped in practice.

4 · The ongoing services

Annual periodic review, inspection support, corpus tailoring, hosting if they want us to run it. Recurring, high-margin, and the reason a site is worth more in year three than in year one.

How a deal moves

Nothing here is invented. It is the standard motion for regulated enterprise software, compressed. Each step is small enough that the buyer can say yes without a committee, and each one produces the evidence needed for the next.

STEP 00
Teardown
Ninety free minutes. They bring one of their own approved validation packages, we run it live, they see the difference.
Client pays€0
STEP 01
Proof of Value
Three weeks, paid, fixed scope. The real product measuring itself against their own historical work.
Client pays€20,000
STEP 02
Lead site
One site licensed, deployed, validated, live. The smallest footprint that proves the point.
Year one€178,000
STEP 03
Expansion
Sites two to five, plus the enterprise system programmes IT brings once the lead site works. €62k is the marginal cost of an additional site folded into an existing Network agreement; €98k is a standalone Standard-band site or Programme licensed on its own.
Per scope€62k–€98k/yr
STEP 04
Network
One agreement across the estate. The relationship stops being a purchase and becomes infrastructure.
Annual€420k–€1.25M+

Who does what

JobQualitumPartnerClient
Finding the dealSometimesYes — this is the job
Pricing & contractOwns the licence contract, always signed directly with the clientQuotes from this sheet, may sell above list and keep the upliftSigns with us
Deployment & validationAlways us. No exceptionsEarns 50% of the fee anywaySupplies templates, SOPs, people for UAT
Day-to-day user supportL3 engineering onlyL1 and L2 — the reason they earn on renewals
Infrastructure & model tokensAgnostic; can operate it for themNormally their own cloud account and their own model contract
Being right with the regulatorSupplier evidence, quality agreement, audit accessAccountable. Nobody can outsource this

Where the money goes

One worked example, so the shape is concrete. A mid-size CDMO buys one Standard site through a Certified Partner: Proof of Value, licence, standard deployment, validation pack and light tailoring.

€204,000
Client pays in year one
€121,600
Qualitum, year one
€82,400
Partner, year one
€98,000
Renewing every year after

In year one the partner earns two thirds of what we do, because they carried the sale and we carried the delivery cost. From year two the position inverts permanently: the licence renews, the project fees do not, and our share is almost all margin. Say that to partners out loud — it is the deal, and hiding it makes them suspicious of the renewal terms.

What is deliberately outside the licence

  • Infrastructure. Their cloud, their account, their bill. We deploy into it.
  • Model tokens. Their model contract in the default deployment. Where we host, an envelope is included and overage is published. Either way it is single-digit percent of what they pay us — see chapter 11.
  • Their own validated state. We supply the evidence; they remain accountable for the decision to use it.
  • Custom code. Configuration is theirs to change freely. Code is not. That boundary is what keeps the licence from leaking — chapter 10.

The vocabulary

Every term used in the rest of this guide, in one place. If a partner cannot use these words correctly on a first call, they are not ready to hold one.

TermWhat it means here
ValidationDocumented proof that a system, piece of equipment or process does what it is supposed to do, reliably and repeatably. In pharma it is a legal precondition for using the thing at all.
Validation packageThe set of approved documents covering one system, equipment item or process — typically a user requirement spec, functional spec, risk assessment, IQ/OQ/PQ protocols, traceability matrix and summary report. Our licence envelope counts these, once, on final approval.
IQ / OQ / PQInstallation, Operational and Performance Qualification. The three test stages that prove something is installed right, works right, and keeps working right under real conditions.
GxPUmbrella for the regulated "good practice" rules — GMP for manufacturing, GCP for clinical, GLP for labs. If work is GxP, it must be validated and inspectable.
Annex 11 / Part 11The two computerised-systems rules that matter: EU GMP Annex 11 and US FDA 21 CFR Part 11. Both govern audit trails, electronic signatures, access control and data integrity.
GAMP 5 Category 4Industry classification for a configured commercial product — not off-the-shelf, not bespoke code. That is what Qualitum is, and it sets how much validation evidence is expected.
CSV / CSAComputer System Validation, and its lighter risk-based successor Computer Software Assurance. CSA is the direction the FDA is pushing, and it favours what we do.
ALCOA+The data-integrity test: attributable, legible, contemporaneous, original, accurate — plus complete, consistent, enduring, available.
SiteOne physical location under one GMP authorisation. This is what the licence key is bound to. Not a company, not a department, not a user.
EnvelopeThe fair-use allowance in the licence, counted annually and reconciled at renewal. It is never metered mid-term and never generates an overage invoice.
CorpusThe body of reference material the agents work against — regulations, guidance, standards and validated examples. We license it; we never hand it over as a file.
EvalAn automated test that scores model output against a known-good answer. Evals plus guardrails plus a human approval step are what make a non-deterministic model acceptable in a regulated workflow.
L1 / L2 / L3Support tiers. L1 is "how do I", L2 is configuration and triage, L3 is engineering and code. Partners own L1 and L2; we own L3.
CDMO / CROContract manufacturer and contract research organisation — companies doing regulated work on someone else's behalf. Both are buyers and both can be partners.
Proof of Value (PoV)Our paid, three-week, fixed-scope pilot. Not a trial, not a demo, not free.
03 — The market

A category that just got validated by a $172B buyer

Digital validation stopped being an emerging category in June 2026. Thoma Bravo agreed to take Kneat — the category leader — private for approximately C$650M in cash, at a 40% premium to its unaffected share price. Kneat's ARR at 31 March 2026 was C$76.4M, so the transaction cleared at roughly 8.5× ARR for a business growing ARR 20% year over year at 78% gross margin.

C$650M
Kneat take-private by Thoma Bravo, June 2026
C$76.4M
Kneat ARR at Q1 2026, +20% YoY
115%
Kneat net revenue retention, FY2025 — expansion is site-by-site
US$2B+
Kneat's own estimate of ARR-based TAM for validation digitalisation

What the numbers tell us about buyer behaviour

  • The land-and-expand unit is the site, not the seat. Kneat's investor materials describe site-by-site expansion; MSD runs 27 sites; a European CDMO signed in April 2026 across two dozen production sites starting with equipment validation. Buyers approve one site, prove it, then roll out. Our licence unit should match how they buy.
  • Deal sizes are large and the floor is high. Mid-six to seven-figure annual deals are reported for top-20 pharma and major CDMOs; smaller for biotech. Veeva benchmarks: ~$325k annual licensing plus ~$300k implementation for a 500-person biotech; ~$2.15M licensing plus $1.2M+ implementation at 5,000+ employees.
  • Services are a second market, not a rounding error. The CSV services market is forecast at ~$4.5B in 2026 growing to $7.4B by 2032. A single GMP system validation project runs $25k–$150k depending on complexity and GAMP category. This is the pool our implementers already live in.
  • Incumbent implementation is slow and expensive. Kneat publishes 8–12 weeks average time to live. ValGenesis realistically runs 3–6 months for a single-site biotech and 9–18 months for a mid-cap multi-site rollout. Veeva makes implementation mandatory — there is no self-service path in a regulated environment.
  • Change-of-control risk is live. Buyers signing multi-year Kneat deals in 2026 are being advised to price in the ownership change. Private-equity ownership historically means price discipline and upsell pressure. That is a real, current, sayable objection for our sellers.
What this means for us

The category is proven, the buyer's rollout pattern is known, and the leader is entering a PE ownership cycle at the exact moment we arrive with a cheaper, faster, sovereign, agent-native alternative. Our job is not to invent demand. It is to be the obvious second quote in every evaluation, and to be dramatically easier to start.

04 — How others charge

Per-seat, per-module, and a services bill that rivals the licence

Sources at the end of this document. Figures are from vendor filings, analyst estimates and directory data — none of these vendors publish a list price.
VendorCharging modelObserved price pointsImplementation
Kneat Gx
Category leader
SaaS subscription for a specified number of users; multi-year terms, typically 3-year agreements, invoiced annually in advance. Land-and-expand site by site. No list price. Mid-six to seven-figure annual deals for top-20 pharma and large CDMOs; smaller for biotech. C$76.4M ARR across the base. 8–12 weeks published average. Professional services priced separately.
ValGenesis VLMS Subscription that scales with users, sites and modules enabled (VLMS core, iVal, iClean, iOps, iCMC, iCPV). No list price. Directory listing shows a $12,000 entry figure on a per-user model. Implementation, validation services and training all quoted separately. 3–6 months single-site; 9–18 months mid-cap multi-site; 3+ years for global top-20.
Veeva Vault
Validation Management
Base application subscription plus named-user licences, per module, per environment. Storage bundles and API limits on top. ~$600–$2,400 per user per year per module. ~$325k/yr licensing for a 500-person biotech; ~$2.15M/yr at 5,000+ employees. Enterprise agreements often structured around $500k/yr. Mandatory. ~$300k for a mid-size biotech (≈92% of first-year licence); $1.2M+ at enterprise. GxP validation alone $100k–$500k.
MasterControl Suite subscription, validation bundled into a wider QMS. Directory entry point from $25,000/yr. Services-led.
Validation services firms
CAI, Performance Validation, boutiques
Day rate or fixed-scope per system. Some now bundle a tool into a service ("validation as a service", no licence). $25k–$150k per system; $40k–$120k per system for 6–12 weeks of execution work. Is the implementation.

Three structural weaknesses we can price against

Seats punish efficiency

Every incumbent's revenue grows with headcount in the validation department. Ours has to grow when their headcount falls, because that is the thing we sell. A per-seat Qualitum would be structurally at war with its own value claim.

Modules gate the outcome

Charging per module means the buyer discovers halfway through that the thing they needed is another SKU. It creates a second negotiation every year and it is the single most common complaint about enterprise life-sciences software.

Services cost as much as the software

A first-year Veeva bill is roughly double the licence. That is where the buyer's pain — and our partners' opportunity — actually sits. Cheap, fast, fixed-price deployment is the wedge.

Where pricing is heading in 2026

The wider market has already moved off pure seats. Seat-based pricing fell from 21% to 15% of SaaS companies in twelve months while hybrid models rose from 27% to 41%. Hybrid — a predictable base fee with a variable or capped usage layer — is now the dominant enterprise standard for AI products, because pure outcome pricing requires attribution nobody can agree on and pure consumption pricing makes budgets unforecastable. Our model is deliberately hybrid: a fixed licence per site, with a fair-use envelope rather than a meter.

05 — The licence

The Qualitum Site Licence

One annual fee per licensed site. Unlimited users. All agents included. The client configures, maintains and owns their data; Qualitum owns the platform and keeps it in a validated, regulator-current state.

What a licence covers

  • One licensed scope — see definition below
  • Unlimited named users, including contractors and CRO/CDMO staff working on that site
  • All agent systems in the purchased band, no per-module gating
  • Deployment into the client's own environment, or a tenant we create for them
  • Full configuration rights: templates, workflows, SOP mapping, terminology, prompt libraries, corpora
  • Annual assurance: platform revalidation evidence, regulatory-change updates, version upgrades, vendor-audit support

What it does not cover

  • Implementation, configuration and data migration — priced per project
  • The client's own validation of their configuration — priced as a Validation Pack
  • Infrastructure and model tokens where the client hosts — they contract those directly
  • Bespoke development beyond configuration
  • Inspection and audit attendance beyond the included allowance

Defining "site" — this is the clause that protects the model

A loose definition is how a global pharma turns eleven sites into one licence. The contract defines a Licensed Scope as either:

  1. A Licensed Site — one physical manufacturing, laboratory or packaging facility operated by the client at a single address, holding its own GMP authorisation, site registration or equivalent establishment identifier. Buildings within one contiguous campus under one authorisation count as one site.
  2. A Licensed Programme — one enterprise system validation programme not bound to a physical site (an ERP, MES or LIMS rollout, a CSV/CSA programme across an IT estate). Priced on the same bands.

The second definition matters more than it looks. A large share of validation spend is enterprise IT, not equipment — one publicly reported Kneat customer used the platform for all CSV documentation on an SAP S/4HANA deployment and reported $81M in savings. A pure per-site licence would have no way to price that deal.

Honest assessment of per-site — where it breaks

Per-site is the right unit, but not on its own. Three failure modes, and the fix for each:

  1. Sites are not equal. A 40-person sterile fill-finish site and a 3,000-person campus are both "one site". Flat per-site overcharges the first and gives away the second. Fix: three bands keyed to scale and validation volume, not one price.
  2. Unlimited usage invites unlimited cost. Agents consume compute and support. Fix: a fair-use envelope expressed in validation packages per year — generous, visible, and reconciled at renewal rather than metered monthly. Pharma will accept a band upgrade; it will not accept a surprise invoice.
  3. CDMOs and CROs serve many clients from one site. One licence could quietly cover work for thirty pharma customers. Fix: a CDMO/CRO clause — the licence covers the site's own operations; validation work delivered as a commercial service to third parties requires the Service Provider band.

Why unlimited users is the right trade

The economic argument is that we should never be paid less because our agents replaced a reviewer. The commercial argument is stronger: seat counting is the single biggest source of friction in a validation rollout, because QA reviewers, engineering, external CQV contractors and equipment vendors all touch the workflow occasionally. Every one of those is a seat negotiation in a Kneat or Veeva deal. Removing it makes our deployment faster than theirs before we write a line of configuration — and speed to first value is the thing we are actually selling.

06 — Price list

Recommended end-client pricing

All figures are recommended list, in EUR, ex VAT. The annual licence is quoted to the client as one number; internally it comprises the operating licence (80%) and Assurance & Upgrades (20%). Partners earn the shares set out in §09 and are free to sell above list — the uplift is theirs.

Annual licence

BandAnnual licenceFitsFair-use envelope
Site · Essential€65,000Single site, one modality. Biotech, small CDMO, medtech plant. Validate·AI.150 validation packages/yr
Site · Standard€98,000The default. Full GMP site, multiple validation disciplines. Validate·AI + Operate·AI.400 validation packages/yr
Site · Complex€145,000Large or multi-modality site, sterile/biologics, campus with several buildings, 2+ integrations.900 validation packages/yr
Programme€98,000One enterprise system validation programme (ERP, MES, LIMS, IT estate CSV/CSA).400 packages/yr
Network€420,000First 5 sites under one legal entity. Then +€62,000 per additional site.Pooled across sites
Enterprise Networkfrom €1,250,000Unlimited sites in one legal entity or region. Negotiated scope, joint roadmap, named engineering capacity.Pooled, uncapped
Service Provider€165,000CDMO/CRO/validation house delivering validation to third parties from a licensed site. Per site.600 packages/yr
Decided · one number, not two

Assurance & Upgrades is bundled into the annual licence and is never quoted as a separate +20% line. The whole position is “one number per site per year”; a separable line contradicts it and hands procurement something to decline at the third renewal, which is exactly when budgets tighten. The extra headline revenue is illusory anyway — a separately quoted assurance line simply gets netted against a lower base to reach the same market-acceptable total. Internally the split is still tracked at 80% operating licence / 20% assurance for revenue recognition and for the upgrade cost centre.

What the limits actually mean

Two numbers in the licence look like restrictions and get asked about on every call. Both are deliberately generous and both are reconciled once a year, never metered mid-term. Here is exactly what they count.

LimitWhat it countsWhat it does not countIf exceeded
Validation packages
per year
One package = one approved deliverable set for one system, equipment item or process. A typical package is a URS, functional spec, risk assessment, IQ/OQ/PQ protocols, the traceability matrix and the summary report — everything for that one system, counted once, on final approval. Drafts, regenerations, rejected versions, review cycles, revisions to an already-approved package within the same year, periodic reviews, searches, queries, dashboards, or anything a user reads rather than approves. Nothing happens during the term. At renewal the site moves to the next band. There is no mid-term overage invoice, ever.
Users Nothing. Unlimited named users at the licensed site, including QA, engineering, external CQV contractors, equipment vendors and CRO staff working on that site's validation.
Licensed scope One physical site under one GMP authorisation, or one enterprise system programme. This is the thing the licence key is bound to. Users, departments, workflow types, agent modules, storage, or the number of systems validated inside the envelope. A second site or programme needs its own licence line. Detected at the annual entitlement attestation.
Token envelope
Qualitum-hosted only
Model consumption when we host. Essential 150M, Standard 500M, Complex 1,200M tokens/yr, pooled on Network. Anything in client-hosted or client-tenant mode — they contract the model directly and we never see the bill. €9 per additional 1M tokens, billed quarterly in arrears. See §11.
Support Included: L3 engineering support, one remote vendor audit per year, unlimited platform documentation and training material access. L1/L2 user support, which is the partner's job in the channel — or a priced Qualitum service on direct deals. Inspection attendance and additional audit days are priced per day.
How to size a site on a first call

Ask one question: “how many systems, equipment items or processes did you validate or revalidate last year?” Under 150 → Essential. 150–400 → Standard. Above 400, or sterile/biologics, or more than one building → Complex. If they cannot answer, that is itself the pitch — they are running a programme they do not measure.

Project and service fees

ItemListElapsedWhat it is
Proof of Value€20,0003 weeksCredited in full against the first-year licence. See §12.
Deploy · Lite€18,0001 weekStandard configuration, SSO, roles, one workflow family, go-live support.
Deploy · Standard€40,0002–3 weeksThe usual case. Multiple workflow families, client templates mapped, document import, admin training, hypercare.
Deploy · Complex€78,0004–6 weeksUp to two integrations, multi-department rollout, legacy migration, non-standard security review.
Validation Pack€40,000+2–3 weeksPer site. Validation plan, risk assessment, IQ/OQ/PQ protocols and execution, traceability matrix, summary report, GAMP 5 Cat 4 evidence, Part 11/Annex 11 assessment.
Corpus & template tailoring€26k / €52k / €88k1–4 weeksLight / standard / deep. Client SOPs, house style, terminology, historical package ingestion, eval tuning.
Annual Periodic Review€18,000/yrPer site. Revalidation of changed configuration, periodic review record, updated traceability.
Inspection support retainer€12,000/yrNamed contact, 48h response, document pack on demand. Attendance €1,600/day.
EU AI Act conformity file€16,0002 weeksFor the client's deployment. Refreshed at €6,000/yr.
Managed Support
direct deals only
€18,000/yrPer site. L1 and L2 user support where there is no partner in the account. Never sold into a partner-owned deal — that is what the partner's renewal share pays for.
Bespoke development€1,400/dayscopedAnything outside configuration. Fixed-scope quote after a paid discovery day.
Dissecting a year-one number

A Standard site's €178,000 year one is €98,000 licence (recurring) + €40,000 Deploy · Standard + €40,000 Validation Pack (both one-off). The €80,000 of one-off cost is 45% of the year-one bill and none of it repeats — year two is the licence alone, €98,000. Isolate that split whenever year one is the objection: the licence isn’t expensive, year one is just carrying deployment on top of it once.

Softening year one without touching the licence

Two approved levers, neither of which moves the licence price or reopens the “one number, not two” decision above:

  • Spread the €80,000 one-off across the year instead of invoicing it at signature — e.g. at signature, at go-live, and at 90 and 180 days. Total is unchanged; the number a procurement approval sees is much smaller.
  • Waive Managed Support (€18,000/yr) for year one on direct deals. This only applies where there is no partner in the account, and it is the moment a new client has the least internal muscle for self-service. Charge it from year two, once they depend on it.

A third lever — ramping the licence itself below list in year one, recovered at renewal — would drop year-one licence margin below the 70% floor by design and needs a blended multi-year model before it is offered, not a per-deal judgement call.

How this compares

ScenarioComparable incumbent costQualitum listNote
500-person biotech, single site, year one~€300k licence + ~€275k implementation (Veeva benchmark)€98k + €80k~69% lower first-year total
One enterprise system CSV project€23k–€138k per system, services route€98k/yr, unlimited systems in envelopeBreaks even on the second system
Global pharma, 8 sitesMid-six to seven figures annually€606kPriced to be the credible second quote

Conversions use approximate mid-2026 rates and are directional. We are consistently positioned below the incumbents — never above — while carrying no per-seat ceiling.

07 — Ownership & renewal

They own the outcome. We own the machine.

The hardest question a partner will get is: "If we own our data and we can configure it ourselves, what exactly am I renewing?" Here is the answer, and it is a strong one.

AssetClientQualitum
Their validation data, documents, records, audit trailOwns outright. Exportable in open formats at any time, including after termination.No claim. No retention. No training on client data.
Their configuration — templates, workflows, SOP mapping, terminology, promptsOwns and may modify without asking us. Full administrative rights.No claim, but changes fall under the change-control clause.
Their environmentRuns in their cloud, their tenant, their region, their LLM contract if they wish.Deployment-agnostic. We can operate it for them as a service.
Platform source code, agent architecture, evals, guardrailsLicensed to use, not transferred.Owns. Non-exclusive, non-transferable, non-sublicensable licence to the client.
Reference corpora, benchmarks, validated datasetsLicensed for use at the licensed site for the licence term.Owns. This is the compounding asset.
Validated state — qualification evidence, regulatory currencyAccountable to the regulator, always.Maintained and re-issued annually under Assurance & Upgrades.
The renewal argument in one line

You are not renewing permission to use software. You are renewing the validated state — the evidence pack that lets you point an inspector at this system, the updates that keep it current as Annex 11, CSA and the EU AI Act move, and the right to deploy new versions. Stop paying and your data is still yours and still exportable, but the validation evidence freezes on that day and the burden of maintaining it moves entirely to you.

What happens at non-renewal

Data

Full export in open formats, guaranteed for 12 months after termination. No hostage clause, ever. This is a selling point, not a concession.

Software

Licence key expires. Read-only wind-down mode for 60 days. Corpora and models are withdrawn — they were licensed, not sold.

Compliance

Last issued validation pack remains valid as a historical record. No further revalidation, regulatory updates or audit support. Their quality unit owns it from that point.

The change-control clause — read this carefully

Giving the client the right to modify their own configuration is commercially right and technically fine, but it has a regulatory edge. The platform is a GAMP 5 Category 4 configured product: we validate the product, the client validates their configuration. The contract must say that in those words. Two consequences:

  • They will need help doing it, which is exactly what the Validation Pack and Annual Periodic Review are for. The right to self-serve creates the service revenue rather than removing it.
  • Under the EU AI Act, a deployer who substantially modifies an AI system or changes its intended purpose can become a provider. The licence therefore defines an envelope of permitted configuration — inside it they are a deployer and we carry provider obligations; outside it they take on provider status themselves. Partners should sell staying inside the envelope, not warn about leaving it.
08 — Implementation & validation

Qualitum implements. Always.

Delivery is not delegated. Every deployment, validation pack and corpus tailoring is executed by the Qualitum team, on Qualitum's method, to Qualitum's evidence standard. The partner sells it, owns the client relationship, runs first-line support — and takes 50% of the implementation fee.

Why we keep delivery

  • The validation evidence is the product. If a partner produces it badly once, the regulator's view of the platform is set for years.
  • Every deployment teaches the corpus. That learning has to come back to us, not sit in a partner's methodology.
  • One to four weeks only works because the team has done it before. Distributed delivery becomes three months again.
  • It removes the partner's biggest objection to signing up — they do not have to build a validation practice to earn from us.

What the partner does

  • Finds, qualifies and closes the deal
  • Owns the client relationship and the renewal conversation
  • Runs L1/L2 user support in the client's language and time zone
  • Coordinates the client side of deployment: stakeholders, access, security review, template collection, scheduling
  • Sells the expansion — site two, the enterprise programme, the periodic review
The headline for partners

One to four weeks to a working, configured deployment. Add two to three weeks if it has to be validated. We do the work; you take half the fee. Compare that with 8–12 weeks published by Kneat, 3–6 months typical for ValGenesis at a single site, and a mandatory implementation at Veeva that costs roughly as much as the first year of licence.

What moves the number

Adds time

  • Client security review and penetration testing before deployment — routinely 2–4 weeks of calendar, not our effort
  • Integrations into QMS, eDMS or ERP — roughly a week each
  • Migration of legacy validation records
  • Multi-language or multi-site template harmonisation
  • A client with no digital validation history — the process design is the work, not the software

Does not add time

  • User count — unlimited, no provisioning exercise
  • Number of agents enabled — all in the band
  • Choice of cloud or region
  • Choice of model provider, including a private or local model
  • Adding a second workflow family after go-live

Capacity is the constraint, and we manage it openly

If we deliver every deal, then delivery capacity — not sales — is the growth ceiling. A standard site consumes roughly 35 engineer-days across deployment and validation pack, so six engineers of standing capacity is on the order of twenty to twenty-five sites a year, not fifty. Three rules follow, and partners are told all three on day one rather than discovering them at signature.

  • Go-live slots are published a quarter ahead and allocated on signature date. A signed order books a slot; a verbal commitment does not. The scarcity is real, so we use it rather than apologise for it.
  • Channel recruitment is capped to delivery capacity — no more than one Certified partner per two engineers of standing capacity. The channel will outrun delivery long before it outruns the product, and a partner with no slot to sell into churns and then talks.
  • The hiring trigger is written down: when booked slots pass 70% of the following two quarters, we recruit. Waiting for 100% guarantees a two-quarter gap, because a delivery engineer in this domain takes a quarter to become useful.

The two levers that raise the ceiling without hiring are Deploy · Lite — steer clients there wherever their templates genuinely fit — and corpus tailoring, which converts bespoke effort into a repeatable asset.

Why delivery list prices are where they are

Deployment and validation are delivered entirely by us, and the partner still takes half the fee. So the list prices are set from the far end: the half we retain has to clear 40% gross margin on fully loaded delivery cost, or the channel is being funded out of our own delivery P&L. That is the whole reason deployment lists at €40,000 rather than the €26,000 an earlier sheet carried, and the validation pack at €40,000 rather than €28,000. It is a real price increase, and it is not negotiable downward without also changing the partner share — the two numbers move together or not at all. Fully loaded cost per line is shown in the master table in chapter 13, so you can see the arithmetic rather than take it on trust.

PackageListLoaded costWe keep (channel)Our margin
Deploy · Lite (1 wk)€18,000€4,400€9,00051%
Deploy · Standard (2.5 wk)€40,000€11,000€20,00045%
Deploy · Complex (5 wk)€78,000€22,000€39,00044%
Validation Pack€40,000€11,000€20,00045%
Corpus tailoring · standard€52,000€13,000€26,00050%
Proof of Value€20,000€9,000€20,000 (not split)55%

Margin policy — two floors, both must hold

  • Gross margin on Qualitum's own revenue: floor 70% on licence, floor 40% on delivery. Licence COGS per site per year is ~€8–14k (L3 support, platform ops, model operations, renewal management).
  • Qualitum's share of end-client licence value: floor 65%. At 65% retention and ~12% COGS the contribution is ~53% of end-client list — the 50% target now holds at every tier and every band, which was not true when partners took 35–40%.
  • Delivery margin is deliberately thinner than licence margin. It buys the annuity.
09 — Partner model

You sell and support. We build and validate. We split it.

Market benchmarks: referral partners in software typically earn 10–15% of first-year contract value; partners who own the customer relationship earn 20–35%; and hybrid structures pay a first-year share plus a smaller recurring one. Our model sits inside that range on the licence and adds something the benchmarks do not have — half the implementation fee, for work we perform.

ReferralCertified PartnerStrategic Partner
invitation only — not published
Who it's forConsultants, advisors, individuals with relationships. Pass the lead, we do everything else.The core of the channel. Local sales and account ownership, first-line support.Regional or segment leaders with a book of business and a support organisation.
Licence, year one15% of the licence as invoiced30% of licence list35% of licence list
Licence, renewals25% every year they remain the account owner30% every year
Implementation, validation, tailoring50% of the fee — Qualitum delivers50% of the fee — Qualitum delivers
Recurring services
periodic review, retainer
50%50%
Proof of ValueQualitum runs and keeps itQualitum runs and keeps it. The partner's licence share is calculated on full list, so the PoV credit comes entirely out of our side.
End-client priceListTheir choice, at or above listTheir choice, at or above list
They mustSign an NDA and register the dealA trained account lead, a trained support contact, deal registration, annual recertificationFour licensed scopes per year, a named support function with defined hours, a joint go-to-market plan
They getDeal registration, materials, we run the salePartner portal, pricing, demo tenant, training, co-branded material, deal protectionAll of Certified plus named-account protection, MDF, roadmap input, early access
Qualitum retains85% of licence70% Y1 / 75% renewals65% Y1 / 70% renewals
The line to use with a partner

On a typical single-site deal you earn roughly €82,000 in year one — €29,400 on the licence and €53,000 as your half of a deployment we execute — and then about €24,500 every year after, for owning the relationship and answering the phone. You do not need a validation practice, you do not need engineers, and you set the end-client price.

The support boundary, defined

The 50/50 delivery split only works if this is precise, so here it is. It goes into the partner agreement verbatim, and it is settled before a Certified partner signs rather than after the first argument about a ticket.

TierOwnerWhat it coversResponse & target
L1Partner“How do I” questions, user accounts and access requests, SSO and sign-in problems, training refreshers, template and terminology guidance, and first triage of anything reported.4 business hours to respond, 1 business day to resolve
L2PartnerConfiguration changes inside the envelope, template and workflow edits, output and report formatting, permission models, data-quality investigation, and reproducing a suspected defect with steps.1 business day to respond, 3 business days to resolve
L3QualitumPlatform defects, agent or model behaviour, performance, security, integrations — anything that needs code, a configuration we do not expose, or a release.By severity, below
SeverityDefinitionQualitum response
S1Production unavailable, or the integrity of a GxP record is at risk.2 hours, 24/7
S2A major function is unavailable and a workaround exists.1 business day
S3Minor defect or degraded function, no material impact on the validated state.3 business days
S4Request, enhancement or question about future behaviour.Next release train
The escalation rule

A ticket reaches L3 with reproduction steps, environment, version and business impact, or it is returned. Three returned tickets in a quarter triggers mandatory retraining before the partner's next recertification. Where there is no partner in the account, L1 and L2 become a priced Qualitum service — Managed Support, €18,000 per site per year — which closes the gap on direct deals and makes the cost of the function visible when a partner asks what their 25% renewal share is actually for.

Rules that keep the channel honest

  • Deal registration, 90 days. First to register with a named contact and a qualified opportunity owns the account. Renewable once on evidence of progress.
  • The licence contract is always Qualitum ↔ end client. The partner earns margin but the licence and the EULA are direct. This protects the client (never orphaned if a partner leaves) and protects us (a partner cannot hold a renewal hostage).
  • Renewal invoicing is ours. The partner share is paid automatically on collection.
  • No sublicensing, no white-labelling the platform. Partners may white-label their own service wrapper. The product is Qualitum in front of the client and in the audit trail — which is what makes the compliance story hold.
  • Account ownership is reviewed annually. The 25–30% renewal share is paid for keeping the client live, supported and current. If support goes quiet, the share reverts to us at the next renewal — and the client is told who to call instead.
  • Support scope is written down — see the table above. L1 and L2 are theirs, L3 is ours, and the severity matrix and escalation rule sit in the partner agreement verbatim. This is the one place a 50/50 delivery split goes wrong, so it is settled before signature and not left to goodwill.
  • Certified partner recruitment is capped to delivery capacity — one per two engineers of standing capacity. Signing partners we cannot give go-live slots to is how a channel destroys itself in its first year.
10 — Protecting revenue

How we stop the licence leaking

Unlimited users plus client-side hosting plus a right to self-modify is, on paper, an invitation to give the product away. It isn't, provided six things are true.

1 · The key is the boundary

Every deployment runs against a signed entitlement file bound to the licensed scope, the environment fingerprint and the validation package hash. It is issued for 12 months with a 60-day grace period. Adding a site means a new key, and a new key means a new line on an order form. No key, no validated state — and an unvalidated instance is worthless to a regulated client.

2 · The envelope, not the meter

Validation packages per year is the fair-use dimension. It is reconciled once, at renewal, against the platform's own approval counter. Exceeding it moves the band next term. Never an in-term overage invoice — surprise billing is the fastest way to lose a pharma account.

3 · Annual attestation plus audit right

Many clients will be air-gapped, so telemetry cannot be the enforcement mechanism. Instead: a signed annual entitlement statement listing sites, environments and approved package count, plus a contractual right to audit once per year on 30 days' notice. Standard enterprise practice, and pharma quality units are entirely comfortable with it.

4 · Corpora are licensed, not delivered

The reference corpora, benchmark sets and eval suites are the compounding asset and they are withdrawn on termination. A client who walks keeps their documents and loses the thing that generated them well. This is the real switching cost, and it is a legitimate one.

5 · Direct licence, resold margin

Because the licence contract is always direct, a partner cannot bundle us invisibly into a managed service, cannot resell one licence across several of their clients, and cannot capture the renewal. The Service Provider band exists precisely so that CDMOs and validation houses can serve third parties — legitimately and at a price.

6 · Configuration yes, code no

Self-maintenance is a configuration right. Source, agent architecture, evals and guardrails are not delivered, not escrowed by default, and not modifiable. Source escrow is available as a negotiated concession on Enterprise Network deals only, released solely on insolvency.

11 — Tokens, infrastructure, compliance

Everything below the licence line

Infrastructure and model consumption sit outside the licence. We are agnostic by design — that is the sovereignty argument — and there are three ways a client can run us.

ModeWho runs whatQualitum chargesUse when
Client-hosted
default
Client's cloud or on-prem, client's model contract, client's security perimeter. We deploy and hand over the keys.Licence + deployment onlyBig pharma, anyone with a sovereign or private-model requirement, anyone with a data-residency mandate. Zero token exposure for us.
Client tenant, we operateWe create and run the tenant inside the client's own cloud account. They own the account and the bill; we hold operational responsibility.+18% of licence/yrClients who want control of the data boundary but have no capacity to run it. Infrastructure and tokens billed directly to them by their cloud provider.
Qualitum-hostedOur validated private cloud, EU or US region. We are then a service provider under Annex 11 and a processor under GDPR.+€34,000/site/yrMid-market and biotech with no platform team. Includes the token envelope for the band; overage €9 per additional 1M tokens.

What tokens actually cost

Partners ask this on every call and usually assume it is the risk in the deal. It is not. The table below is built from a blended model price of $5 to $12 per million tokens — the low end being a mid-tier model with cached retrieval, the high end a frontier model running full multi-pass sampling on every document. Real deployments land in the middle.

Engineering estimates pending telemetry from the first live sites. EUR shown at approximately $1.08 to the euro. Quote the envelope to clients, not these numbers.
Workload Tokens At $5/M At $12/M ≈ EUR % of licence
One simple package
GAMP Cat 3, small instrument
0.2–0.6M$1–$3$2–$7€1–€7
One standard package
Cat 4, multi-pass review
0.6–1.5M$3–$8$7–$18€3–€17
One complex package
Cat 5, large enterprise system
1.5–3.0M$8–$15$18–$36€7–€33
Essential site
150 packages/yr, €65,000 licence
60–200M$300–$1,000$720–$2,400€280–€2,2000.4–3%
Standard site
400 packages/yr, €98,000 licence
240–600M$1,200–$3,000$2,900–$7,200€1,100–€6,7001–7%
Complex site
900 packages/yr, €145,000 licence
900M–2.0B$4,500–$10,000$10,800–$24,000€4,200–€22,0003–15%
8-site network
~3,200 packages/yr, €606,000 licence
1.9–4.8B$9,500–$24,000$23,000–$58,000€8,800–€54,0001.5–9%

What pushes it to the top of the range

  • Frontier model on every pass rather than a tiered cascade
  • Shotgun sampling at high n for contested or high-risk content
  • Large legacy corpora re-embedded rather than cached
  • Heavy regeneration cycles — the fix is prompt and template tuning, which is what corpus tailoring buys

The line for partners

In client-hosted mode — which is most deals — tokens are the client's own cloud bill and never appear on our invoice. Where we host, the envelope is included and the overage rate is published. Either way, model cost is single-digit percent of what they pay us. It is not a reason to hesitate and it is not a hidden cost.

Decided · what is quoted, and what is not

The per-package figures above are engineering estimates and are never quoted to a client as a commitment. What is contractual is the envelope and the published overage rate. Qualitum-hosted envelopes are set with roughly 40% headroom over the estimate, so the hosted margin survives the estimate being wrong by that much. The first three deployments are instrumented for per-package telemetry and these numbers are replaced with measured data before the first Certified partner is onboarded. Review trigger: if measured consumption exceeds 60% of envelope in any quarter, the band envelopes are re-cut at the next annual revision.

Compliance: who is who, and what we charge for it

This is a pitch, not a disclaimer. The client cannot outsource accountability to a regulator — nobody can — so the offer is not “we take the risk off you”. It is: we make the evidence cheap, current and inspection-ready, and we stand next to you when someone asks for it.

FrameworkClient isQualitum isWhat that obliges us to provide
GMP / Annex 11 / Part 11Regulated entity, accountable for the validated stateSupplier; service provider if we hostQuality/technical agreement, supplier qualification pack, validation evidence, change notification, audit access
GDPRControllerProcessor if we host or operate; otherwise neitherDPA, sub-processor list, EU data residency, non-retention and no-training commitments
EU AI ActDeployerProvider of the AI systemTechnical documentation, risk management file, logging, human-oversight design, conformity file; and a defined configuration envelope so the client does not inadvertently become a provider
ISO 27001 / securitySets the requirementCertified operatorCertificate, statement of applicability, pen-test summary, security questionnaire responses on request

Priced compliance items

  • Included in the licence: platform validation evidence, regulatory-change updates, quality agreement, supplier questionnaire responses, one remote vendor audit per year.
  • Validation Pack — €40,000/site, one-off at deployment. The client's own IQ/OQ/PQ evidence for their configuration.
  • Annual Periodic Review — €18,000/site/yr. Sold as the thing that keeps self-maintenance safe.
  • Inspection support retainer — €12,000/yr, plus €1,600/day for attendance.
  • EU AI Act conformity file — €16,000, one-off, refreshed at €6,000/yr.
  • On-site vendor audit hosting — €4,800/day beyond the included remote audit.
12 — Go-to-market

The ladder

Every enterprise software company that has won in a regulated category has run the same motion: a small, cheap, credible first commitment that produces a number the buyer can take to their finance director, followed by a site, followed by the network. Kneat ran exactly this and was bought for C$650M. We are not inventing a motion; we are compressing it.

STEP 00
Teardown
Ninety minutes, free, no paperwork. They bring one of their own approved validation packages to the call. We run it live and show what the agents produce against what their team produced, and how long each took. This is the step before the Proof of Value and it is what actually converts.
Client pays€0
STEP 01
Proof of Value
Three weeks. The real product on our benchmark corpus, run against three to five of their own historical packages. Output is a side-by-side against their measured baseline, a recovered-hours number and a draft business case.
Client pays€20,000 · credited
STEP 02
Lead site
One site licensed, deployed, validated and live. Deliberately the smallest defensible footprint, chosen with the champion for visibility rather than size. Success criteria agreed before signature.
Year one, typical€178,000
STEP 03
Expansion
Sites two through five, plus the enterprise system programmes that surface once IT sees the lead site working. Deployment is faster each time because the templates are already harmonised.
Per added scope€62,000–€98,000/yr
STEP 04
Network
A single network agreement replacing site-by-site paperwork, with pooled envelopes, a joint roadmap and named engineering capacity. This is where the relationship stops being a purchase and starts being infrastructure.
Annual€420,000–€1.25M+

The Proof of Value, defined

It is a paid, fixed-scope services engagement — not a licence, not a trial, and not an obligation to buy anything afterwards. It exists to convert a belief into a measured number the client can defend internally.

What it is

  • The genuine product, fully working, in a Qualitum sandbox we build and run
  • Pre-loaded with the industry benchmark corpus, so it performs from day one without any client data ingestion
  • Run against 3–5 of their real, historical, already-approved validation packages, redacted if their legal team prefers
  • Measured against three success criteria and a baseline they supply, agreed in writing before kick-off
  • Delivered as a live readout to the champion and their economic buyer, plus a written report they keep

What it deliberately is not

  • Not connected to their systems — no ingestion pipelines, no integrations, no security review needed
  • Not validated, and therefore not usable for GxP work — stated in the order form, in bold
  • Not open-ended — three weeks, fixed scope, fixed price, one extension of one week by agreement
  • Not a mock-up, a demo tenant or a slideware pilot
  • Not free, and not discounted below list

Commitment, cancellation and the credit

QuestionAnswer
Can they cancel after committing?Yes. Cancel any time up to seven days before kick-off for a full refund less a €2,000 mobilisation fee. Cancel after kick-off and it is pro-rated by whole week, with a 50% minimum — we will have built the environment and loaded the corpus in week one.
Does it auto-convert to a licence?No. There is no auto-renewal, no evergreen clause and no obligation to proceed. The order form is a services order that ends on delivery of the readout.
How does the credit work?The full €20,000 is credited against the first-year licence if a licence is signed within 90 days of the readout. 50% is credited between 90 and 180 days. After 180 days the credit lapses. Applies once per client, not per site.
What if we miss the criteria?They keep the report, the baseline analysis and the environment for a further 14 days, and they owe nothing more. No refund — they commissioned a measurement and they received one. We will offer one free week to re-run against different packages if the miss was ours.
Who owns the output?The client owns every document generated, and their source material never leaves the sandbox and is deleted on request at close. The documents are not GxP-usable because the instance is unvalidated, and that is written into the order form so nobody is surprised at an inspection.
Who pays for it internally?Almost always the validation or quality department's own budget. €20,000 sits below the no-tender threshold in most pharma organisations — but confirm the specific account's threshold before quoting, because in some it is €10,000.

When €20,000 sits above their no-tender threshold

Ask it on the first call: “what is your no-tender threshold for software and services?” In most pharma organisations €20,000 sits below it. Where it does not, we do not split the purchase across two invoices to get under it — deliberate threshold-splitting is a finding internal audit actively looks for, and being the vendor who proposed it is a poor first impression to make on a quality organisation. The deal takes a different shape instead:

  • Extend the teardown rather than shrinking the PoV. Half a day instead of ninety minutes, still free, still their own documents — now two or three packages, with their QA reviewer in the room. It does most of what the PoV does, and it costs us a morning.
  • Then go straight to the lead site, with the first three weeks gated. The deployment's first milestone becomes an acceptance gate against the same three success criteria. Miss the gate and the client may terminate, paying only that milestone. Same risk transfer, one purchase order, no threshold problem.

A discounted half-scope PoV was considered and rejected: most of the cost is the environment build and the corpus load, neither of which halves, so a €9,500 version cannot clear the margin floor. What this route does cost us is the budget owner a paid pilot creates — so the champion has to be stronger before we take it. Qualify accordingly.

Why it is paid rather than free

  • Free pilots do not convert in this category. Enterprise spend on generative AI tripled to $37B in 2025, yet MIT research found roughly 95% of generative AI pilots failed to show measurable P&L impact within six months. Almost all of them were free, unscoped and owned by nobody.
  • A paid pilot creates a budget owner. Someone senior has to sign — and that is precisely the sponsor you need for the licence conversation twelve weeks later. Phase-gated pilots convert dramatically better than big-bang deployments.
  • The credit removes the only real objection. They are not spending €20,000 on a trial; they are pre-paying the first slice of a licence they can still walk away from.
  • The free step already exists. It is the Teardown. Anyone who will not give ninety minutes and one historical document was never going to buy.

Success criteria worth agreeing to

Pick three, in writing, before kick-off, measured against the client's own historical baseline which they supply: for example a 40% or better reduction in authoring and review hours on the sample packages; 100% requirement-to-test traceability in the generated output; and QA acceptance of the generated content by their own reviewer without structural rework. Agreeing the baseline is half the sale — it forces the client to quantify a cost they have been carrying without measuring.

The buyer, and what actually persuades them

RoleWhat they care aboutWhat to put in front of them
Head of Validation
champion
Cycle time, backlog, audit findings, their team's overtimeThe Teardown, then the PoV readout with their own packages side by side
Site or Ops director
economic buyer
Time to release, recovered FTE capacity, capital project schedulesRecovered-hours arithmetic: a site running 200–400 packages a year with 8–15 validation FTE recovers roughly 4–7 FTE-equivalents at 50% documentation reduction — €300k–€600k of capacity against a €98k licence
QA / Compliance
gatekeeper
Data integrity, ALCOA+, inspection defensibility, supplier qualificationValidation Pack contents, quality agreement, audit trail design, our GAMP 5 Cat 4 position
IT / Security
gatekeeper
Where the data sits, which model, what leaves the perimeterClient-hosted deployment, model-agnostic architecture, non-retention and no-training commitments, ISO 27001
ProcurementComparability, exit risk, lock-inOne number per site per year, no seat true-ups, guaranteed data export, no exit fee

Four objections and the answers

“You're not Kneat.”

Correct — and Kneat has just been taken private by a private equity firm, which usually means price discipline and upsell pressure at renewal. We are the second quote that costs less, deploys in weeks rather than months, runs inside your own perimeter, and doesn't charge you per person.

“AI can't be validated.”

The platform is a GAMP 5 Category 4 configured product and is validated as one. Output quality is controlled by evals, guardrails and multi-pass sampling, with a human approval step that is never removed. The model is an interchangeable component; the controls are the product.

“Our data can't leave.”

It doesn't have to. Default deployment is inside your own cloud account with your own model contract. We are infrastructure- and model-agnostic, including private and local models. We can also operate it for you without ever holding the data.

“Why is it so much cheaper?”

Because we don't charge per person, don't gate features into modules, and deploy in weeks instead of quarters. The incumbents' cost structure includes a large field-services organisation. Ours includes agents.

13 — The full picture

Cost, margin, partner price, client price

Everything on one sheet. Line items are at recommended list. “Our cost” is fully loaded internal delivery cost, not marginal cost. Each partner tier shows what Qualitum keeps and what the partner earns from the same client invoice.

Line item Client
list
Our
cost
Referral · 15% Certified · 30/25/50% Strategic · 35/30/50% · invite only
QualitumPartner QualitumPartner QualitumPartner
Licence · Site Standard
year one
98,00011,800 83,30014,700 68,60029,400 63,70034,300
Licence renewal
every following year
98,00011,800 98,0000 73,50024,500 68,60029,400
Proof of Value (credited)20,0009,000 20,0000 20,0000 20,0000
Deploy · Lite18,0004,400 18,0000 9,0009,000 9,0009,000
Deploy · Standard40,00011,000 40,0000 20,00020,000 20,00020,000
Deploy · Complex78,00022,000 78,0000 39,00039,000 39,00039,000
Validation Pack40,00011,000 40,0000 20,00020,000 20,00020,000
Corpus tailoring · light26,0005,500 26,0000 13,00013,000 13,00013,000
Annual Periodic Review /yr18,0005,000 18,0000 9,0009,000 9,0009,000
Inspection retainer /yr12,0003,000 12,0000 6,0006,000 6,0006,000
Qualitum-hosted /site/yr34,00014,000 34,0000 34,0000 34,0000
Typical single site, year one
PoV + Standard licence + Deploy Standard + Validation Pack + light tailoring
204,00048,300 189,30014,700 121,60082,400 116,70087,300
Qualitum gross margin, year one 74% 60% 59%
Same site, year two onward 98,00011,800 98,0000 73,50024,500 68,60029,400
Qualitum gross margin, run rate 88% 84% 83%

All figures in EUR. The Proof of Value credit is applied to the client's licence invoice and comes entirely out of Qualitum's share — the partner's licence percentage is always calculated on full list, which is why the Certified year-one total shows €121,600 rather than €141,600.

Change any number

The calculator below starts on that same example. Every quantity, price and cost is editable, and so are the three partner percentages. Set a quantity to zero to remove a line.

Deal model

Line item Qty Unit price € Our unit cost € Client Qualitum Partner
Proof of Value credit against licence (borne by Qualitum)
Client pays, year one
Client pays, each following year
Qualitum · year 1
Qualitum · run rate
Partner · year 1
Qualitum share of licence value, year one
Qualitum share of licence value, renewals
Services as a share of the year-one bill
Qualitum three-year revenue
Partner three-year revenue
Client three-year spend
Qualitum cost, year one
Qualitum cost, run rate
Gross profit, year one
Gross profit, run rate

Worked cases

CaseClient yr 1Qualitum yr 1Partner yr 1Qualitum 3yrPartner 3yr
A · Mid-size CDMO, one Standard site, Certified Partner. PoV + Deploy Standard + Validation Pack + light tailoring.€204,000€121,600€82,400€268,600€131,400
B · Biotech, one Essential site on our hosted cloud, referral partner, everything delivered by us.€203,000€193,250€9,750€391,250€9,750
C · Top-20 pharma, 8-site network, Strategic Partner. Deploy Standard and Validation Pack per site, deep tailoring.€1,334,000€757,900€576,100€1,606,300€939,700

Note the shape of case A: in year one the partner earns two thirds of what we do, because they carried the sale. From year two the position inverts permanently and our share is almost all margin. Say that to partners out loud — it is the deal, and hiding it makes them suspicious of the renewal terms.

14 — What we owe every regulated client

The five things their QA will ask for

Chapter 11 commits us, in one line of a table, to five deliverables under GMP: a quality/technical agreement, a supplier qualification pack, validation evidence, change notification and audit access. They are included in the licence, which means they are pure cost, and they have to exist before the first signature rather than after it. This chapter says what each one is and what building it involves.

These are not five projects

The quality agreement is the parent document. Change notification and audit access are annexes inside it. The supplier qualification pack is the pre-sale dossier, and the validation evidence is what that dossier points at. Build them in that dependency order and it is two documents and one engineering effort, not five workstreams.

1 · Quality / technical agreement

A bilateral document signed by QA on both sides, not procurement, sitting alongside the commercial contract. Required by EU GMP Chapter 7 on outsourced activities and by Annex 11 §3.1, which obliges the regulated company to have a formal agreement with any third party providing a computerised system.

What goes in it

  • Scope of the service and its GxP criticality
  • Contract giver / contract acceptor roles
  • A responsibility matrix across validation, change control, incident and deviation handling, CAPA, backup and restore, disaster recovery, data integrity
  • Notification obligations and timelines
  • Subcontractor and sub-processor disclosure, and their approval right
  • Audit rights (Annex B)
  • Record retention, data return and destruction on exit
  • Named contacts, escalation path, review cycle

What we do about it

Write one master template that we hand them, so every negotiation is a redline of our paper rather than an acceptance of forty different versions of theirs. Roughly two to three days of drafting, and it pays for itself on the second client. Where we host, a service-provider addendum is bolted on covering the operational responsibilities we take over.

2 · Supplier qualification pack

What their QA needs in order to put us on the approved supplier list. Driven by Annex 11 §3.2 and by GAMP 5 supplier assessment. This is the single artefact that decides whether being qualified takes two weeks or eight, so it is a sales asset as much as a compliance one.

ComponentContents
Company & stabilityCorporate profile, ownership, financial standing, insurance, references, escrow position if asked.
Quality systemQuality manual summary, SOP index, document control, training and competency records, deviation and CAPA process.
EngineeringSDLC description, GAMP 5 Category 4 categorisation rationale, testing approach, release and version control, defect management.
SecurityISO 27001 certificate and Statement of Applicability, penetration test summary, access control model, incident response, business continuity and DR.
Data protectionDPA, sub-processor list, residency position, retention and non-training commitments.
HostingData-centre and region detail, shared-responsibility model, monitoring and backup regime — only where we host or operate.

The real deliverable is the response bank

Two artefacts: a supplier dossier PDF, and a pre-filled questionnaire response bank — the two hundred-odd standard questions every pharma QA and security team asks, answered once, maintained centrally, reused verbatim. The dossier is what they read; the response bank is what removes weeks of latency from every deal. About a week to build, and it should be owned by one person permanently.

3 · Validation evidence

Careful with the naming. This is not the €40,000 Validation Pack we sell — that is the client's own IQ/OQ/PQ for their configuration. This is our product-level evidence, given away inside the licence, proving the platform itself is built under control so the client can leverage it rather than re-test the platform layer themselves.

  • Software development lifecycle procedure and its records
  • Requirements and design specifications
  • Risk assessment (FMEA) at product level
  • Unit, integration and system test protocols and executed results
  • Requirements-to-test traceability
  • Version control, release records, release notes, defect and known-issue log
  • Configuration management and environment qualification
  • A Part 11 / Annex 11 technical controls assessment — audit trail, electronic signature, access control, timestamps, record integrity against ALCOA+
The part nobody has precedent for

The AI layer is where QA will spend its time, because there is no established template for it. Our position needs to be written down as a standalone paper: pinned model version and pinned inference configuration, an eval suite with published acceptance thresholds, regression evidence on every change, multi-pass sampling for contested content, and a human approval gate that is never removed. The validated object is the workflow and its controls, not the model. That paper is also the answer to the "AI can't be validated" objection in chapter 12, so it earns its keep twice.

This is the long pole. Three to four weeks with engineering, and it cannot be written by anyone who is not inside the codebase.

4 · Change notification

A contractual commitment not to break their validated state without warning. It needs a classification scheme with lead times, published, and identical for every client.

ClassWhat triggers itNoticeWhat we supply
MajorAnything touching the validated state: data model, audit trail, electronic signature, breaking API change — and any LLM version change90 daysImpact assessment, regression evidence, the client's right to defer to their own change window
MinorNon-breaking feature additions, UI changes, new agents that do not alter existing outputs30 daysRelease notes and a summary of test coverage
Patch / securityHotfixes and CVE remediation5 working daysEmergency security fixes may ship first with retrospective notice, by prior agreement

Add a version support window — n-1 supported for eighteen months — and a deprecation policy. Then state plainly that there are no silent model swaps. That single sentence does more work in a QA meeting than the rest of the annex combined.

Two pages, half a day to write. The one thing to get right is consistency with the configuration envelope in chapter 10: if clients may modify freely and we also promise change control, the boundary between configuration and code has to be identical in both documents.

5 · Audit access

Define it, or it becomes unlimited — and forty clients auditing us individually is a headcount problem long before it is a compliance one.

  • One remote or postal audit per year included. On-site beyond that at €4,800/day, already priced in chapter 06.
  • 30 days notice, reduced to 5 working days for-cause following a major deviation or incident.
  • Scope limited to the service they buy. Escorted. No access to other clients' data, environments or records — which is itself a control they should want.
  • Regulator access: we commit to supporting inspection by their competent authority or the FDA, including a pre-approval inspection, on reasonable notice.

Commission one independent audit and share it

The SOC 2 pattern applied to GMP: one third-party GxP supplier audit, one report, offered to every client and every prospect. It costs a single engagement and removes most of the individual audit demand permanently. The lead time is long, so the decision needs making early — not the week the first client asks.

Build order, and what it costs us

#ArtefactEffortWhy it is in that position
1Validation evidence + the AI control position paper3–4 weeks, engineering-ledLongest lead time, needs people inside the codebase, and it blocks the QA gatekeeper on every deal.
2Supplier questionnaire response bank and dossier~1 weekHighest leverage per hour spent. Shortens qualification on every deal from that point on.
3Quality agreement master template, with change notification and audit access drafted straight in as Annexes A and B3–4 daysOne document, not three. Writing the annexes separately guarantees they will contradict each other.
4Independent third-party supplier auditLong lead, commission earlyNot needed for the first deal. Needed badly by the fifth.

Why this sits in a pricing guide and not a compliance one

All five items are given away inside the licence, and four of the five carry a recurring cost: the evidence has to be refreshed at every release, the response bank has to be maintained, the quality agreement has to be reviewed on cycle, and every client is entitled to an audit a year. That is a standing cost against every licence line, for as long as the licence renews.

Which is the point. When a partner asks why the licence cannot be discounted by fifteen per cent to close a quarter, this is a large part of the answer, and it is a better answer than “policy”. It is also the strongest thing to say to a client comparing us on price alone: the cheaper quote in front of them almost certainly does not include a supplier who will still be producing current validation evidence in year three.

15 — Questions we actually get

Frequently asked

Grouped by who asks. Click a question to open it. Answers here are the approved wording — if you find yourself improvising an answer to something on this list, tell us and we will add it properly instead.

Licence and limits

What exactly is a "site"?
One physical location operating under one GMP authorisation, or alternatively one enterprise system validation programme. It is the thing the licence key is bound to. A campus with several buildings under one authorisation is one site; two plants under separate authorisations are two licences. Full definition in chapter 05.
Is it really unlimited users?
Yes, at the licensed site — including QA, engineering, external CQV contractors, equipment vendors and CRO staff working on that site's validation. There is no true-up, no named-user list and no audit of headcount. This is the deliberate opposite of every incumbent, and it is the reason a buyer stops comparing us line by line.
What counts as a validation package against the envelope?
One approved deliverable set for one system, equipment item or process, counted once on final approval. Drafts, regenerations, rejected versions, review cycles, revisions inside the same year, periodic reviews, searches and dashboards do not count. Chapter 06 has the full table.
What happens if they go over the envelope?
Nothing, during the term. There is no mid-term overage invoice, ever — that is a promise, not a courtesy. At renewal the site moves to the next band. Say this early and unprompted; the fear of a metered bill is the single most common reason a technical buyer stalls.
Can they modify the system themselves?
Configuration, yes and freely — templates, workflows, prompts, roles, terminology. Code, no. That boundary is written into the licence and it is what stops the product being forked into something we can no longer support or validate. Chapter 10.
What happens if they do not renew?
They keep every document they produced and can export all of it in open formats. They stop being able to run the platform, and the corpus licence ends. There is no exit fee and no hostage-taking of their records — chapter 07 covers it in detail, and it is worth volunteering to procurement rather than waiting to be asked.

Price and comparison

Why are we so much cheaper than Kneat or Veeva?
Because we do not charge per person, do not gate features into modules, and deploy in weeks rather than quarters. Their cost structure includes a large field-services organisation; ours includes agents. It is a structural difference, not a discount, and it should be said in exactly those words.
Can a partner sell above list?
Yes. Every price in this document is recommended list. A partner who sells above it keeps the uplift in full. What a partner may not do is sell the licence below list without written approval, because the discount would come entirely out of our share.
Can we discount?
Multi-year prepayment and network commitments are the approved routes. Ad-hoc percentage discounts on a single site licence are not — they reset the client's expectation permanently and they are the first thing that leaks into the next negotiation. If price is genuinely the blocker, move them down a band or narrow the scope rather than cutting the number.
What does it cost in year two?
The licence renews and the project fees do not repeat. A typical Standard site is €204,000 in year one and €98,000 a year after that, plus whichever ongoing services they took. That drop is a selling point — use it against incumbents whose implementation costs recur as "managed services".
What exactly is inside the €178,000 year-one number?
€98,000 licence (Standard band, recurring) + €40,000 Deploy · Standard + €40,000 Validation Pack (both one-off). The €80,000 of project fees is 45% of the year-one bill and none of it repeats — year two is the €98,000 licence alone. Lead with that split when year one is the objection: it isn’t the licence that’s expensive, it’s deployment landing on top of it once. Chapter 06 has the same breakdown for Essential and Complex bands.
Can we soften the year-one number without discounting the licence?
Yes, two approved ways. Spread the €80,000 of project fees across the year in instalments (signature, go-live, 90 and 180 days) instead of one invoice at signature — total is identical, the number procurement sees is not. And waive Managed Support (€18,000/yr) for year one on direct deals, since that's exactly the moment a new client has no internal muscle for self-service; start charging it from year two. Do not ramp the licence itself below list without a blended multi-year model first — that touches the 70% licence margin floor by design and is not a per-deal call.
Why is Expansion priced €62k–€98k, not one number?
It's a range because a second site can land in different places. €62,000 is the marginal cost of a site folded into an existing Network agreement (first five sites cost €420,000 as a block, each one after that is €62,000). €98,000 is what a standalone second site costs if it's licensed on its own as a Standard band, or if it's an enterprise system Programme. Ask which structure the client is in before quoting a number.

Proof of Value

Why is the pilot not free?
Free pilots do not convert in this category. Enterprise generative-AI spend tripled to $37B in 2025 while roughly 95% of pilots showed no measurable P&L impact within six months — almost all of them free, unscoped and owned by nobody. A paid pilot creates a budget owner, and that owner is the sponsor you need twelve weeks later. The free step already exists: it is the teardown.
Can they cancel after committing?
Yes. Full refund less a €2,000 mobilisation fee up to seven days before kick-off. After kick-off it is pro-rated by whole week with a 50% minimum, because the environment is built and the corpus is loaded in week one. There is no auto-conversion to a licence and no evergreen clause.
Do they get the €20,000 back?
It is credited in full against the first-year licence if they sign within 90 days of the readout, 50% between 90 and 180 days, and it lapses after that. Once per client, not per site. Frame it as pre-paying the first slice of a licence they can still walk away from.
What if the Proof of Value misses its criteria?
They keep the report, the baseline analysis and the environment for a further fourteen days, and owe nothing more. No refund — they commissioned a measurement and received one. If the miss was ours we offer one free week to re-run against different packages.

Delivery and partners

Why can't a partner implement?
Because a bad first deployment in a regulated account is unrecoverable, and because the validation evidence has to come from the party that built the software. We keep delivery and give the partner half the fee anyway — they get the margin without the delivery risk or the standing engineering capacity. Chapter 08.
So what does a partner actually do for the money?
Finds the deal, holds the relationship, runs the commercial process, and answers L1 and L2 support day to day. That last part is why they keep earning on renewals rather than only on the first sale.
What does a partner earn?
Referral tier: 15% of licence, year one only. Certified: 30% year one, 25% on renewals, 50% of services. There is a third tier, Strategic, at 35/30/50 — it is invitation-only, it is not on the published sheet, and it is offered after four partner-sourced sites are live. Full table and the worked cases are in chapter 13.
Who answers the phone when a user has a problem?
The partner, for L1 and L2 — how-do-I questions, accounts and access, configuration changes inside the envelope, and reproducing a suspected defect. Qualitum takes L3: defects, agent behaviour, performance, security, integrations. S1 severity is two hours, twenty-four seven. The full boundary and severity matrix are in chapter 09, and they go into the partner agreement word for word. On direct deals with no partner, L1 and L2 are a priced Qualitum service at €18,000 per site per year.
How long does implementation take?
One week for a lite deployment, two to three for the standard case, four to six for a complex one, plus two to three weeks if the validation pack runs alongside. What adds time is integrations, legacy migration and non-standard security review — not the number of users and not the number of sites.
Do we place engineers at the client site, and how are they scoped?
No — there is no client-embedded engineer. Delivery is scoped as roughly 35 engineer-days per standard site across deployment and validation, done from Qualitum's own standing team, never delegated to a partner or a client-side hire. Six engineers of standing capacity covers about 20–25 sites a year, which is why go-live slots are published a quarter ahead and allocated on signature rather than promised on a call.
What happens if a client cancels mid-deployment?
Handled the same way as any non-renewal, not as a special case. If it's before signature, see the Proof of Value cancellation terms above. Once a licence is signed and deployment is underway, there is no separate mid-deployment cancellation clause — a client who stops paying moves to the standard non-renewal path: full data export guaranteed for 12 months, the platform goes read-only after 60 days, then the licence key expires. Chapter 07.
How is this different from Palantir's forward-deployed model?
Palantir prices per negotiated deal with no published list, and its moat is the embedded engineer — a Forward Deployed Engineer who lives inside one client's operations long enough that the relationship itself becomes the switching cost. We deliberately don't build that: delivery stays centralised in our own team so the validation evidence and the corpus compound as a product asset, not as one engineer's tacit knowledge of one account. It's why we can publish a price list and Palantir can't.

Technology, data and compliance

Where does the data live?
By default inside the client's own cloud account, with their own model contract, inside their own perimeter. We deploy and hand over the keys. We can also run it in their tenant on their behalf, or host it ourselves — three modes, chapter 11.
Which model does it use?
Whichever they want, including private and locally hosted ones. The model is an interchangeable component. Qualitum is the quality layer above it — evals, guardrails, multi-pass sampling, benchmarks and validated reference data — and that layer is the product.
How can an AI system be validated at all?
The platform is a GAMP 5 Category 4 configured product and is validated as one. The model version and inference configuration are pinned, changes trigger regression evidence, output is scored against an eval suite with published thresholds, and a human approval step is never removed. The validated object is the controlled workflow, not the model's mood on a given day.
What do the tokens cost?
Single-digit percent of what they pay us. A standard site running 400 packages a year lands around $1,200–$7,200 of model consumption for the year, against a €98,000 licence. In the default deployment it is their own cloud bill and never appears on our invoice. Chapter 11 has the full table.
Are you accountable to our regulator?
No — nobody can take that accountability off a licence holder, and any vendor who claims otherwise is telling you something useful about themselves. What we do is make the evidence cheap, current and inspection-ready, and stand next to you when someone asks for it. Chapter 14 lists exactly what we supply.
What certifications do you hold?
ISO 27001, with the Statement of Applicability and a penetration test summary available under NDA. The supplier qualification pack in chapter 14 is the full answer and should be sent before the security questionnaire arrives rather than after.
16 — Decisions & rationale

Seven decisions, and why the alternative lost

Earlier drafts of this model carried open questions. They are closed. Each one is recorded here with the reasoning, because a partner who knows why a rule exists will hold it under pressure, and a partner who only knows the rule will trade it away in the first difficult negotiation.

1 · Assurance & Upgrades is bundled, not added on

One annual number per site. The alternative was quoting assurance as a separate line at plus twenty per cent, which looks like more revenue and is not: a separable line simply gets netted against a lower base to reach the same total the market will accept. What it does reliably produce is a line item procurement can decline at the third renewal, which is precisely when budgets tighten and when we have the least leverage. Bundled is also harder to discount, because there is nothing separable to attack.

2 · The per-site bands are the only price vocabulary

€65k / €98k / €145k per site, €420k for a network. Earlier material carried a different set of tier figures; those are retired, not reinterpreted. The alternative was keeping both and explaining that one meant customer-level spend and the other per-site. Two price vocabularies inside one company is how an account ends up holding two different quotes from us, and nobody recalls a retrofitted definition correctly under pressure in a negotiation. Customer-level spend is now a derived figure — three standard sites is €294,000 — and never a published tier.

3 · Delivery list prices rose when we committed to the 50/50 split

Deployment at €40,000 and the validation pack at €40,000. The alternative was holding the earlier, lower figures and splitting those. It does not work: we carry the entire delivery cost and hand over half the fee, so the retained half at the old prices sits below any defensible margin, and the channel ends up funded out of the delivery P&L. The increase is simply the price of having a channel, and even after it a first-year bill from us is roughly seventy per cent below a Veeva-class equivalent. Anything quoted from an older sheet is re-quoted before signature.

4 · Delivery capacity is published and the channel is capped to it

Go-live slots published a quarter ahead and allocated on signature date; no more than one Certified partner per two engineers of standing delivery capacity. The alternative was recruiting the channel first and solving delivery afterwards. A partner with no slot to sell into churns, and a churned partner talks to the same small pool of accounts we are selling to. Scarcity that is stated in advance is a selling tool; scarcity discovered at signature is a broken promise. Chapter 08 has the mechanics.

5 · The Strategic tier exists, but is not published

Referral and Certified are on the sheet. Strategic is offered by invitation, after four partner-sourced sites are live or against a pipeline we have independently qualified. The alternative was publishing all three. With no certified partners in place yet, publishing three tiers invites every conversation to open by negotiating for the deepest one, before anybody has sold anything at all.

6 · The Proof of Value stays at €20,000; a low threshold changes the shape of the deal, not the price

Where €20,000 sits above an account's no-tender threshold we do not split the purchase across invoices — deliberate threshold-splitting is exactly the pattern a pharma internal audit function looks for, and proposing it to a quality organisation is a poor first impression to make. The alternative considered was a discounted half-scope pilot; it fails on arithmetic, because most of the cost is the environment build and the corpus load, and neither of those halves. The route round it is in chapter 12: an extended teardown, then a lead site whose first milestone is a terminable acceptance gate.

7 · Support tiers are defined before the first partner signs, not after the first argument

L1 and L2 belong to the partner, L3 to us, with response times and a four-level severity matrix, written into the partner agreement verbatim — chapter 09. The alternative was settling it in practice as tickets arrived. That is how a 50/50 delivery split turns into a dispute: not over money, but over who owned a ticket at two in the morning. Where there is no partner in the account, L1 and L2 become a priced service at €18,000 per site per year, which also makes visible what a partner's renewal share actually pays for.

What is still genuinely unknown

Three things, and none of them blocks a sale. Per-package token consumption, until the first three sites are instrumented — the figures in chapter 11 are engineering estimates and are labelled as such, and what is contractual is the envelope, not the estimate. The real support load behind a Certified partner, until one has been live a quarter. And the no-tender threshold in any given account, which is now a qualification question on the first call rather than a pricing question. Each has a stated trigger that reopens it. None of them is a reason to delay a quote.

17 — Reference

Sources & method

Sources. Figures cited above are drawn from the following. Vendor pricing in this category is not published; where a number is an analyst or directory estimate rather than a vendor disclosure, it is described as such in the text.

  1. Kneat Q1 2026 results (ARR C$76.4M, +20% YoY; revenue C$18.0M, +22%; gross margin 78%) — investors.kneat.com
  2. Thoma Bravo agreement to acquire Kneat at C$6.50/share, ~C$650M, 40% premium, June 2026 — thomabravo.com
  3. Kneat MD&A: SaaS licences for a specified number of users, contracts typically three years, annual advance invoicing, US$2B+ TAM estimate — investors.kneat.com
  4. Kneat Gx profile: land-and-expand site-by-site, mid-six to seven-figure enterprise deals, NRR 115%, 8–12 week implementation — pharmaspotter.com
  5. ValGenesis VLMS profile: licence scales with users, sites and modules; 3–6 months single site, 9–18 months mid-cap multi-site — pharmaspotter.com
  6. Capterra directory entries for ValGenesis ($12,000 entry, per-user) and MasterControl (from $25,000/yr) — capterra.com
  7. Veeva pricing analyses: $600–$2,400 per user per year per module; ~$325k licence + ~$300k implementation at 500 employees; ~$2.15M + $1.2M at 5,000+; GxP validation $100k–$500k — checkthat.ai, intuitionlabs.ai
  8. CSV services market $4.5B (2026) → $7.4B (2032); $25k–$150k per system validation project — intuitionlabs.ai
  9. Channel benchmarks: referral 10–15%, VAR/MSP 20–35%, hybrid first-year plus renewal share — channels-as-a-strategy.com, magentrix.com
  10. Pricing-model shift: seat-based 21%→15%, hybrid 27%→41% in twelve months; hybrid dominant for enterprise AI in 2026 — pickaxe.co, getmonetizely.com
  11. Pilot economics: $37B enterprise generative AI spend in 2025; ~95% of pilots without measurable P&L impact in six months; phased pilots convert far better than big-bang — agenticaipricing.com, anyreach.ai

Qualitum · commercial model draft, 29 July 2026. Recommended prices only — partners set their own end-client price at or above list.