There is no single price for ERP. Cost depends on scope, so the useful question is not "how much" but "what exactly is included and what is billed again later".
The main cost drivers
| Factor | Why it changes the cost |
|---|---|
| Number of modules | Finance and inventory is a smaller project than finance, HR, production and CRM |
| Number of users and branches | More roles, approvals and locations mean more setup and training |
| Customisation | Custom forms, workflows and reports take development time |
| Integrations | Tally, WhatsApp, payment gateways, biometric devices, e-way bill |
| Hosting | Cloud subscription versus your own server |
| Data migration | Clean-up and import of customers, items, opening balances |
| Training and support | Onsite training, post go-live support, annual maintenance |
Licence, subscription or custom build
Ready products are usually priced per user or per module, either as a subscription or a one-time licence. A custom ERP is priced on scope. Neither is automatically cheaper over three to five years, so compare total cost over that period.
Questions to put in writing
- Which modules, users and branches does the quote include?
- Is data migration included, and how many masters and years of history?
- How many days of training and who delivers it?
- What does the first year of support include and what does the annual contract cost after it?
- Who owns the source code or data export if you leave?
- Are mobile apps, reports and integrations included or priced separately?
Hidden costs people forget
The quote is rarely the whole picture. Budget for the time your own staff spend on data clean-up, training and testing, which is real work taken from their normal jobs. Also plan for hardware or internet upgrades, additional users as you grow and the cost of any process change the software demands.
- Staff time for requirements, data clean-up and testing
- Extra users, branches or modules added in year two
- Integration and report requests that appear after go-live
- Annual support or maintenance after the free support period
Tip: Ask for a fixed-scope quote with a written scope list. It is the simplest way to avoid change-request surprises mid-project.
Related guides: ERP Software Development Company
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