Prix d'un ERP

ERP Software Price: 15 Factors to Consider Before Buying

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Choosing an ERP is one of the biggest financial and operational decisions a business can make. But understanding what it actually costs is not always straightforward. Software, licensing, implementation services, integrations, training, internal resources, every part of the project impacts the total cost of ownership (TCO).

15 ERP Price Factors to Consider Before Buying

Building an ERP budget requires understanding every piece of the project, from software costs to internal time investment. Here are the factors that matter most.

1. ERP Software Selection

There are many ERP platforms on the market, but some specialize in specific sectors, as Epicor does for manufacturers and distributors. Considering your business needs before buying an ERP solution is essential. We suggest you look at some of our ERP comparison studies to help you make the right choice.

2. ERP Deployment Model

The ERP deployment model also impacts the average cost of an ERP system.

  • Cloud ERP (SaaS): Lower upfront investment, subscription-based, no servers to maintain.
  • On-premises ERP: Higher initial investment, requires servers, cybersecurity tools, and IT maintenance.
  • Hybrid deployment: Combines both.

Learn more about deployment models

3. Type of Software License

There are different types of licensing, such as perpetual licensing or the subscription model. These licenses are generally linked to the deployment model mentioned above. For example, cloud ERP costs less as they are typically subscription models and give the user access to the application without further actions.

For hybrid and local deployment, the license fee is higher initially, and annual maintenance is required for access to support and ERP upgrades.

4. Material Expenses

If you’re planning an on-site deployment of your ERP, you’ll also need to consider hardware costs in your ERP budget.

  • ERP software cost
  • Server purchase
  • Cybersecurity solutions
  • Server, network and workstation maintenance

5. ERP System Personalization

For most organizations, from small businesses to supply chain giants, allocating a budget to customize the ERP is necessary. That means all the development work involved in tailoring the application to your requirements.

6. Industry

Some highly regulated or specialized industries can see their costs rise because their needs are more complex and they require more functions, which means more time and expertise needed for configuration.

7. Additional Functions and Modules

The addition of advanced functionalities and ERP modules should also be considered, depending on the company needs and the approach used for the initial deployment (Big Bang vs Phased).

8. Integration with Other Systems

The number of solutions your new ERP needs to integrate increases the complexity of your ERP project. The ERP implementation cost includes a price for a certain number of billable hours. The more complex your project, the longer it will take, the higher your ERP budget.

9. Data Migration

Another crucial element to consider in the budgeting process is ERP data migration. This can either be handled by the customer or the integrator for an additional investment. We’re talking about data extraction, transformation and loading (ETL), and data cleansing services to ensure data integrity in the new ERP system. Dealing with a data conversion specialist ensures a secure transfer, which is paramount to the success of your ERP implementation.

10. ERP Cost per User and External Interfaces

The vast majority of ERP suppliers offer per-user pricing. You’ll need to consider this cost when preparing a budget for an ERP system. In addition to the number of users, external interfaces (CRM, financial or accounting systems, e-commerce platform if you sell products online, HR sytems, etc.) also impact ERP implementation costs.

11. User Training

ERP user training is a crucial step in ERP implementation project management. The cost is higher when a company calls in a professional, but it also affects productivity, as employees have to take time off work to attend training.

12. ERP Services Contract

Deploying an ERP system requires personalized support to make the most of your solution. Professional implementation services typically include:

  • Review of business processes
  • Training
  • Configuration assistance
  • Assisted pilots
  • Support with application deployment (Go Live)

These phases require an investment of integrator resources, which are paid for by the hour. Following deployment, ongoing investment is vital to ensure the level of use of the solution remains high. We recommend frequent updates to ensure you always benefit from new technological developments. For example, the integration of AI into Epicor Kinetic thanks to the Grow AI portfolio and Epicor Prism.

13. Internal Costs

The involvement of an in-house project team is also an aspect that shouldn’t be overlooked when assessing the ERP price. A drop in productivity is to be expected as your project team dedicates part of its time to the ERP project during implementation. Although this doesn’t add any expenses to the project, it is still an internal cost to plan for.

14. Discontinuation of Previous System

Replacing a legacy system carries additional costs, such as:

  • Early contract termination fees
  • Data extraction costs
  • Infrastructure decommissioning
  • Disposal or reassignment of server hardware

Some businesses also need temporary dual-system operation during the transition.

15. Total Cost of Ownership of an ERP System

To get a general idea of how much your ERP software will cost you in total, it’s necessary to calculate the Total Cost of Ownership (TCO). The TCO calculation is as follows:

ERP purchase price + implementation + operating costs for 5 to 10 years

Frequently Asked Questions About ERP Price Factors

There is no single price for an ERP system. ERP pricing varies depending on:

  • Company size
  • Deployment model
  • Required modules
  • Customization level
  • Internal vs external involvement

Working with an experienced ERP partner helps ensure accurate budgeting and predictable results.

It’s impossible to put a precise figure on savings, as they depend on many factors. As a general rule, ERP enables organizations to: Optimize operational costs (process automation, fewer human errors, more efficient use of resources, etc.).

  • Improve efficiency by accelerating production and order processing times, enabling organizations to save time.
  • Save on IT infrastructure as ERP centralizes information systems and reduces the number of stand-alone solutions.

Save on inventory and supply chain management costs, such as warehousing, supplier management and excess inventory losses in manufacturing and distribution companies.

It all depends on the size of your business and your revenues, the higher your revenues, the lower the percentage. Some companies invest as little as one percent of their revenue in their ERP system. However, manufacturing and distribution companies that are a little more dependent on their ERP solution should budget between 2% and 5% of their revenue.

Stay Within Your ERP Budget with EC Solutions

Work with an experienced Epicor consultant to ensure on-budget and successful implementation. Read our ERP case studies to discover how EC Solutions helped leading manufacturers and distributors with their many ERP projects.

If you need help establishing a budget, a project schedule, or determining which ERP to choose, our Epicor specialists are at your service.

Get expert guidance in choosing your ERP

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AI only delivers value when it is properly configured and aligned with the company’s actual needs.

At EC Solutions, we help manufacturers use AI effectively within Epicor ERP. This results in practical automation, reliable insights, and systems that users trust and actually use.

If you’re interested in exploring AI in ERP without getting caught up in the hype, our team is ready to help you take the next step with confidence.

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