How much does ERP software cost? Pricing varies based on a variety of factors. We can divide pricing plans by business size — small business and enterprise — with each further divided by price factors, such as: number of users, complexity of feature set, deployment and license.
Shopping for an enterprise resource planning software is no easy task, especially if you have no idea as to how much you should spend in such tools. And platform vendors are not helping either, keeping their pricing plans to themselves. These complications can lead to purchasing consequences from unmet business requirements and worse, losses from hidden costs of some ERP tools. There are several factors that determine an ERP solution’s final price. Normally, after choosing an ERP system, a buyer negotiates terms with the vendor after which the parties seal the deal with a contract.
ERP solutions are priced differently with user requirements exerting a major influence. For small businesses, pricing is usually comes by quote, based on plan features, user subscription or single pricing models. This is due to the fact that most small businesses go for inexpensive packages, which are usually offered by cloud-deployed platforms and they rely mainly on ERP software rankings. Large enterprises, on the other hand, require much more complex and often pricey ERP software. These tools often come in pricing packages that are based on number of users, customized quotes, and feature sets.
In this article, we will discuss ERP software pricing in general. Factors influencing how such solutions are priced and the usual pricing models that accompany ERP products used for both small and large businesses will also be discussed.
In purchasing an ERP system, vendor-buyer negotiations could take a long time, depending on business size and needs. Here, we discuss the factors that influence the final pricing of an ERP software.
The number of people that will use the system and tool requirements are usually dictated by business size. Fewer user licenses are needed for small to medium-size businesses who also typically do not need high-end, superfluous tools that come with enterprise-grade ERP solutions. Customization is known to increase the price of an ERP tool, specifically for those who have specialized processes.
There are two types of ERP software deployment models–on-premise and cloud-based. Although cloud-based systems are known for their low prices, subscription fees for such tools can increase by up to 30 percent in the course of a year compared to their on-premise counterparts, which are offered on a one-time payment basis for a perpetual license. In addition, extra costs could come in the form of maintenance and support, depending on the vendor.
For large organizations, investing in an ERP solution can be a very easy decision, many of whom have come to realize why ERP software is useful for their business, and are therefore, inclined to invest in on-premise tools. And this is not the case with small to medium-size businesses, who are known to prefer cloud-based solutions owing to their inexpensive pricing. This is also the reason why vendors of such systems offer competitive pricing apart from the fact that subscription licenses are constantly adding to company overheads.
An equally important factor to consider is the cost of implementing an ERP system. Implementation includes processes like project planning and organization, installation, training and system configuration, among others. Depending on your vendor or customization needs, implementation costs may vary. However, these may be reduced if you opt to use some of your IT people to help in the implementation process.
This is specifically for those who are planning to invest in an on-premise ERP solution, which requires regular maintenance. These costs include networking fees, IT personnel expenses and additional hardware.
Any business using an ERP system for the first time should have their staff trained in using a system and such may take time with learning curve and all. Training costs do not simply involve one-time payments, more often than not, continuing training is required to ensure proper use of a system. However, many vendors offer training resources for free to help users improve their ERP skills.
So how much does ERP Software Cost? As mentioned earlier, ERP implementation costs largely depends on a number of factors. However, for the purpose of providing a simple answer, we have come up with a short guide on how much you should spend in an ERP system, using business size categories as pricing basis.
For small businesses with up to 75 employees and turnovers of up to $80 million, low-end ERP solutions are typically enough to cover all processes. The prices of these tools may range from $25,000 to $100,000 depending on factors such as customizations, industry requirements and number of users.
Cloud-based business management solution Scoro is highly-suited to SMBs, especially those in the IT, consulting and advertising sectors. It has a wide array of features that include work scheduling and tracking, collaboration, customer relations and project management and reporting. It is easy to use as it gets rid of the need to use a different solution for different tasks. A main feature is a control hub, which displays account information, tasks, performance data and other pertinent business aspects.
Pricing based on feature set. The software is priced based on individual plan features. It can be purchased in three pricing models. Its Plus package comes for $22/user per month. A premium package is being sold for $33/user per month and an Ultimate plan is priced at $55/user per month. The vendor offers an attractive free trial plan. Simply sign up for a Scoro free trial here.
Robust ERP solution Sage Intacct combines Sage and Intacct, bringing to the table all the capabilities of both companies. It essentially provides finance and accounting with all the benefits of cloud computing. The system is designed to boost corporate performance and financial productivity. Key functionalities include cash management, accounting, purchasing, financial consolidation, subscription billing, contract and vendor management and financial reporting.
Pricing by quote. Although Sage Intacct pricing comes by quote, packages for small businesses start at only $400/month.
Cloud-based ERP platform Odoo is a combination of sales and project tools, housed in a single product. This is further complemented by functionalities such as POS, MRP and eCommerce, helping companies handle all aspects of their operations. Its inventory management feature combines with its sales channel integrations, making sure that sales and inventory are always on the same page. However, what makes the software a powerful one is that users can avail of around 300 new applications per month.
Pricing by module. Odoo is being sold on a per module basis at $12/user per month. What’s great is you get to customize your own plan by adding more apps of your choosing as the need arises.
Cloud-based ERP platform ECount helps businesses in handling processes like purchasing, production,accounting and human resources, all from a singular dashboard. It also helps companies on ERP implementation costs. Proof of this is the fact that the system is being used by around 22,000 organizations around the world. This highly-flexible ERP solutions is highly-recommended for small to medium-size businesses.
Pricing fixed using a single plan. ECount is available in a single pricing plan of $55 per month.
Designed for mid-market companies, FinancialForce ERP helps businesses in moving from CRM to ERP platforms. It is highly beneficial to organizations’ customer services as it basically unifies all departments under a single ERP tool that is built around the Salesforce system. It connects employees, customers, products and even partners under a common solution, enabling each one to view the whole customer experience. Key features include workflow, analytics, cross-departmental reporting and collaboration, financial management, ordering and billing and supply chain management, among many others.
Pricing based on per user. FinancialForce ERP is sold on a per user subscription basis. Individual pricing is calculated depending on users’ organizational roles. You can directly contact the vendor for a quote.
Large companies require enterprise-grade ERP solutions. In shopping for such a tool, businesses with more than 501 employees and turnovers of above $250 million should be ready to dole out more than $1 million when purchasing such system.
Total ERP solution Netsuite ERP is specifically designed for growing, mid-size organizations and enterprises. It is capable of automating just about any process there is, including revenue, order, inventory and financial management, fixed assets and billing. These functionalities enable the system to provide the whole organization with visibility into key performance reports and indicators. The platform combines financial management and business intelligence, allowing users to make sound business decisions. Order-to-cash processes are likewise accelerated with sales and fulfillment tied to pricing policies. If you want to explore and learn more of the software’s comprehensive features, simply sign up for a NetSuite ERP free demo here.
Pricing based on per user, modules, add-ons. NetSuite ERP’s pricing models come by quote. You have to directly contact the vendor to get pricing information. Enterprise plans, on the other hand, are priced based on number of users per month, modules and add-ons.
A robust ERP software, SYSPRO is designed to help growing manufacturing firms to integrate, synchronize and control their processes. Deployed via cloud or on-premise, the tool comes in multiple modules that showcase features that do not only focus on manufacturing but other company processes as well. The software effectively manages costs by minimizing losses from manual and repetitive processes and paperwork. It also automates warehousing through distribution management. Aside from these, accounting, financial, operational and manufacturing management capabilities are also present. The best way to evaluate the features is for you to try them. You can easily sign up for a SYSPRO free trial here.
Pricing by quote. Syspro’s pricing depends on number of users, software deployment and customer requirements.
A multi-channel management platform, Brightpearl is highly-recommended for retailers as it is useful in managing orders, accounting, customer information and inventory all from a single console. Its real time reporting capabilities provide users with a view of customer purchasing behavior, cash flow and profitability by SKU and channel, to name a few. It has a number of popular integrations, including Shopify, Bigcommerce, Magento and online marketing platforms like Amazon and eBay.
Pricing by quote. Brighpearl’s pricing plans are not available on the vendor’s website. You have to contact the company to request for a customized quote.
An end-to-end business management platform for any organization size and type, Oracle ERP is a cloud-based solution that observes best practices and industry standards in streamlining any business process. It is simple but highly-scalable and is able to automate processes like reporting, compliance, planning and procurement, risk management and product lifecycle, to name a few. This fully integrated ERP solution comes with a host of applications that can boost productivity, lower costs and improve control over entire business operations.
Pricing based on feature set. Oracle ERP Cloud can be purchased in three pricing plans,which are based on product features. A Financial Reporting plan comes for $175/month. Its Advanced Financial Controls plan for $80/user per month, while an Advance Access Controls package is priced at $150/user per month. You can also contact the vendor for more pricing information.
SAP actually provides an ERP that scales across business sizes starting with the SAP Business One. For enterprises, you have SAP S/4HANA designed for businesses with global reach across practically all industries. It can be deployed via cloud private cloud or on-premise and offers companies total control over their organizations. This intelligent ERP platform is designed for in-memory computing, providing users with value across all business lines. Key features include predictive analytics, better automation, agility and efficiency through machine learning and headquarters and subsidiaries integration.
Pricing by deployment. The company does not publicly disclose its prices. You have to visit the vendor’s website to get a quote. The type of deployment will dictate your plan.
Effitrac ERP centralizes all core operations from within a single platform and leverages powerful automation tools to accelerate one’s workflows and processes. Built for small and medium-sized enterprises, this ERP solution helps users easily stay on top of their accounting, inventory, production orders, inter and intra departmental communications, human capital planning, customer management, and others. At a quick glance, you can see all essential data in real-time and make appropriate adjustments to satisfy customer demand. Effitrac ERP also delivers precise, custom reports that are always updated to provide you with reliable figures. It features an offline mode as well so you can take charge of your business operations at all times and reliably sync information upon reconnecting to the internet.
Pricing by quote. Contact the vendor to get a custom quote.
Deciding to purchase an ERP software solution can be difficult at times. But knowing their cost is a step in the right direction when choosing one. Being aware of how much you should invest in such system minimizes risks of making the wrong purchase. However, if you feel that you need to know more about these tools, check out this top 20 ERP software guide, which can provide you with everything there is to know about these products.
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