>Hi,
>
>I have an off-the-shelf package that I developed for sale. I have two options for licensing it.
>
>1. a monthly one of US$25 per user per month
>
>2. a one off charge with optional annual support from the second year. For the first 5 users US$2,400 and then $1,000 for the next 5 users. Annual support is 20% of their licence.
>
>A client who has been using the system for some months now on the monthly plan is expanding and wants to consider the second option for 34 licences (and of course wants a discount). I had never anticipated selling more than 10 licences per customer.
>
>Needless to say I prefer the monthly payment as that means I have regular income.
>
>How would you suggest I approach this larger number of licences?

Maybe keep it simple and only offer the monthly payment option with discount for quantity ? e.g.:
1 - 10 $25/month
10-20 $22.50/month (10% discount)
20-40 $20/month (20% discount)

Extend or adjust to suit - the actual cost of support per user would need to be taken into account.....