ERP cost is more than software subscription
A low monthly fee can still lead to an expensive project when implementation, customisation and integration are added.
The better comparison is total cost of a working system.
1. Number of users
Many ERP platforms charge by user, so the number of employees requiring access affects cost.
2. Applications required
Accounting-only requirements differ significantly from inventory, manufacturing, HR and full ERP environments.
3. Implementation and data migration
Company setup, chart of accounts, warehouses, permissions and legacy data migration form part of the project cost.
4. Training
A capable system with poor user training can still result in low adoption.
5. Customisation and integrations
Special workflows and external integrations can increase implementation cost.
6. Hosting and support
Confirm whether hosting, backup, updates and technical support are included.
How should ERP proposals be compared?
- ✓ Compare total first-year cost.
- ✓ Compare future annual cost.
- ✓ Understand implementation scope.
- ✓ Check user and storage limits.
- ✓ Review future customisation costs.
- ✓ Consider other software that ERP may replace.