How Much Is ERP?
Yesterday, Alison and I attended an EXPO event in Glasgow. Hashtag Events were at Hampden Park hosting #exposcotland and Cofficient were exhibiting NetSuite at a stand there.
Without exception, everyone who approached our stand asked this question (or a variation of it): How much is it?
I suppose if I am honest with myself, I really dislike that question. There is no easy way to answer it.
It’s tempting to say; “it’s really inexpensive” because that’s what I suspect people want to hear.
But that wouldn’t be entirely truthful (not least because everyone’s version of “cheap” is different)
It’s also tempting to say; “there’s something for every budget”, which is true… but a bit disingenuous.
Inquiring minds want to know!
Regardless of how difficult the question is to answer, or how many variations of the truth there is, I completely accept that this is what people want to know. No one wants to hear the big sales pitch only to discover the product is completely out of their price range. Especially if the pitch is good and the product is something of interest!
So I am going to attempt to address this question, in a common sense way, to help you progress your product research. And frankly, if you’re thinking it, I should answer it.
As with any major purchase, there are several considerations to take into account. Just as an estate agent can’t tell you the price of “a house” without finding out your preferred location, house size, number of rooms etc, I can’t tell you a single definitive price for ERP. I can’t even tell you average price.
- There are many types of ERP – I cannot tell you the pricing of all of them, only the ones I sell
- The pricing of the system will depend upon your needs
- Some ERP (like NetSuite) are modular packages so you pay for what you consume. Consume more, pay more
- Other ERP (like SAP ByDesign) offer complete functionality but you pay for “user types” (like CRM users or Enterprise users). The range and number of users you have will influence the price
- Some ERP (like SAP ByDesign) are not for micro companies or small start up companies because you are required to take a minimum of circa 20 users. Other ERP (like NetSuite) can be deployed on a single user basis if you require it
- ERP vendors typically offer discounts. Like other service providers the discount you are offered will depend upon your consumption and commitment. Get your vendor partner to negotiate the best deal for your requirements
- Some software providers offer free software (like Zoho CRM). These might be adequate solutions for you. The key is to properly examine your needs with a consultant. It’s prudent to undertake a simple cost benefit analysis so you don’t end up throwing the baby out with the bathwater.
So….How Much is ERP?
In the case of NetSuite the cheapest thing you can purchase is a single user CRM which is likely to cost you about £1.4k per annum.
A typical ERP price for NetSuite for circa 10-15 users might be £25-30k per annum.
If you are an enterprise sized business deploying NetSuite on a large scale across hundreds of users and including functionality like manufacturing or e-commerce, as you might expect, the price will fall into the hundreds of thousands per annum.
It is harder to quote for SAP ByDesign without understanding how many users you might need and what functions they would be expected to complete on the system. However, you can expect to pay around £20k-30k as a minimum.
Remember to factor implementation costs into your project budget. With any enterprise software, it’s not as simple as “plug and play”. You may need some customisation or a bit of configuration. The more you can follow standard processes and use “out the box” functionality, the lower your implementation costs will be. Every business is different but a general rule of thumb is that implementation will double the cost of the project in the first year.
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If you want to find out what software is right for you and how much it will cost, get in touch.
Written by Emma Stewart – Sales and Marketing Director at Cofficient