The cost of inventory management software will depend on several different factors including the number of users who need access to the system, whether you’re implementing a cloud-based or an on-premises solution, if you’re implementing an all-in-one inventory and accounting system or just an inventory solution, whether you need to integrate with any other existing systems, if you require other specific feature requirements, and the amount of training and data migration necessary to get you up and running on a new system.
When you start to put together a budget for inventory management software, you need to be realistic and pragmatic in what is, in fact, achievable within your budget. Which brings us to a crunch question: how do you determine your budget? I find that many companies seem to start off with an arbitrary budget, based on what they feel they should spend – without using any real-world frame of reference. Such companies sometimes end up spending, say, $20,000 on a system that doesn’t really work for them, because that was their budget based on a preconceived notion; whereas a $40,000 system would have provided a terrific solution and a springboard to growth and profitability. Therefore, the first step is to identify what you want a new software solution to accomplish, to help you determine a realistic idea of costs.
An important factor to keep in mind when setting a budget for new software is whether or not your business can benefit from an introductory based system (such as Fishbowl) or a full inventory and accounting ERP solution. Not only will each type of system significantly vary in cost, but also functionality. While purchasing an inventory management system might save you money, will it be able to address all of your requirements? Will it be able to scale with your business as it grows? What about the costs of manual processes re-keying data between your inventory management system and accounting software? Or the costs of fixing errors and adjusting numbers to make sure everything is in sync? Before you can set a realistic budget, you need to have an understanding of your needs, your business processes, and the potential time and resource costs of implementing each different type of system.
To learn more about the cost of an all-in-one inventory management and accounting system, download our ERP pricing guide.