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How Much Does an ERP System Cost in 2021?

Pricing is an important factor that every business owner must consider before investing in enterprise resource planning (ERP). The price of the ERP software varies based on many things such as the nature of deployment, the number of users and the level of customizations. Some vendors may display pricing on their website, and others might offer a quote after finding out the company's requirements. Here are various ERP pricing models and implementation costs for your reference. 

What is an ERP?

Enterprise resource planning software supports the company to manage business functions and streamlines operations. The user-friendly interface of the ERP makes them easier to use for the business. Many organizations use this software to standardize business processes, collect operational data and improve supply-chain efficiency. The software is also used to promote data-driven strategies and enhance collaboration between departments. The solution typically includes the following modules:

Accounting and finance

The ERP software includes an accounting and finance module that is used to track the company’s finances. It helps to track including budget and expense planning, core accounting, and revenue and tax management. 

Customer relationship management (CRM)

Enterprise can manage their client-facing operations like sales, marketing and customer service with this module. With the help of this module, employees can track sales prospects and customer pipelines. With the customer relationship management module, users can manage marketing tasks, lead generation campaigns and others. 

Supply chain

This module tracks products from manufacturing to the warehouse to distributors to customers. Supplier scheduling, claim processing, purchasing, shipping, tracking and product returns are features. 

ERP system pricing models

Perpetual licensing and subscription plans are two pricing models that most ERP vendors use.

Perpetual licensing

An organization that uses host ERP software on its own servers will pay a perpetual licensing fee. The perpetual licensing fee is a one-time cost that is paid up-front. It is based on users and customization levels. It doesn’t include recurring costs like maintenance, support and upgrades.

Subscription plans

To access cloud ERP software, enterprises can also pay subscription fees. In cloud ERP software, the vendor maintains and hosts on a third party data server. The organization requires the merest contract length for subscription plans and comes in several tiers with enhancing functionality and modules.

Implementation costs

ERP is widely used for managing the business effectively. ERP implementation software includes:

Modules or features not included in the base price - Some ERP solutions may price some extra fees for advanced features such as manufacturing and e-commerce, and more. 

Customization – customization is expected by many organizations for their specific business processes. Looking for customization can add up costs quickly. 

Consultants – Most of the larger vendors use third party consultants for implementation. Based on the service, the cost can be varying. 

Hardware – Organizations need to purchase data servers and hardware infrastructure to host their ERP system. 

Small to medium - sized enterprises can expect to pay lower for implementation than the prices for large-sized businesses. 

Ongoing costs to consider

Some ERP systems may require added resources that are not generally incorporated in the base price, such as IT staff, customer support, and maintenance and upgrading. 

Endnote

The pricing of the ERP system varies based on many aspects. When you select an ERP system, you can consider their pricing and things that come under the pricing. Pixbit Solutions offers the top-notch ERP solutions.

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