The cost of ERP software will depend on several factors and vary from one vendor to the next. However, across software tiers or categories, the price of competing solutions will be similar. This allows businesses to easily compare vendors in the same category on factors other than costs – such as functionality, industry fit, after-sale support and more – which will ultimately have a bigger impact on the benefits the system can provide a business. When it comes to software categories, most ERP solutions will fall into one of three different categories. The first category includes introductory software, which is not technically ERP software. These types of systems are great for small businesses and start-ups but only include features for one main area of the business (think accounting and QuickBooks). Introductory software is a standalone system that requires integration with other solutions for features such as inventory management, point of sale, purchase orders and contact management. The second category includes true ERP software (which stands for Enterprise Resource Planning), meaning the features available cover all operating areas of a business – from accounting, to inventory, to order entry and processing, to contact management, barcode scanning, eCommerce, warehouse management and more. ERP systems are for businesses that have outgrown existing introductory software and are looking to reduce manual work, increase automation and grow. Category three solutions are also true ERP systems, but, are for large multi-national corporations with global operations, a large employee and user base and a high volume of transactions. Within each category, the price of any given system will be comparable, so its important to realize that it doesn’t make sense to try to compare the cost of systems across categories, as the products provide different features and are for different business types.
Blue Link ERP falls within category two as outlined above and is for small-medium size businesses with between 5-150 employees. To get an idea of costs for the software, it is best to schedule a 10-15 minute initial discovery call with someone from our sales team. This will allow you to learn more about the costs of Blue Link, and it will also help determine if the software is even the right fit for your business – before you waste too much time on detailed discussions and product demos. There is no point in discussing pricing if the software is not going to be a good fit from a functionality and industry standpoint. Typical software costs will include license fees and implementation costs. License fees can be billed upfront, or on a monthly basis and implementation costs will vary significantly from one vendor to the next.
Once you know what category of software to shop for and you have determined that the system in question is a good fit for your business, it is time to get a rough idea of software costs. I say rough because without detailed discussions it is hard to get a specific idea of the cost since it will depend on several different factors. Initial discussions with software vendors to review project needs, scope, requirements and pricing at a high level will provide you with information to determine if there is a fit and if there are resources available for the project. Further discussions then provide businesses with the opportunity to dive deeper into the evaluation to learn more about specific requirements and functionality. Thus, although initial cost estimates will include a large range of numbers, they will at least help you determine if the vendor in question has a product within your budget. Although pricing structures will vary between vendors, for the most part, costs are based on the following:
- Number of users
- Specific functionality – for example, does your business need tools for eCommerce?
- Implementation method – cloud-based or on-premises
- Implementation Costs:
- System set-up and configuration
- Do users have experience using software?
- Are users getting trained in multiple areas of the software?
- Data migration
- Are you migrating data from existing systems into the new software?
- Is the data in different formats and coming from different sources?
- Does the data need to be “cleaned” up? For example, removing duplicate or bad data
- Maintenance costs – these costs cover software upgrades and keep the application in warranty
Comparing Vendors Costs
Although systems within the same category will have comparable costs, it is important to keep in mind slight differences that could have a significant impact. For example, some vendors charge fees for upgrading systems that have custom modifications – outside of standard maintenance fees. This means that even if maintenance costs cover upgrades, you will still have to pay a lump sum to have the custom reapplied. Another example is vendors who discount pricing for the first year. This can happen with large software vendors where sales reps have to meet quotas and so they discount the product to sell more. These prices then increase after the first year or “discount” period. Other examples include vendors who have minimum user requirements and customers have to buy users in groups as opposed to as individual licenses. Other vendors will package together users and functionality which allows them to give businesses a better price but makes calculating individual feature and user costs difficult.
Download our ERP Pricing Guide
Blue Link ERP Pricing
To learn more about if Blue Link is the right fit for your business, and to learn more about costs, schedule an initial discovery call with one of our sales team today. 10 minutes on the phone allows our team to:
- Learn about your basic business processes
- Assess software fit in terms of industry, processes and requirements
- Gather information to provide accurate pricing
- Determine if it makes sense to schedule more in-depth discussions