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More and more businesses are jumping into NetSuite for its solid capabilities in integrating various functions like ERP, CRM, and eCommerce. As a cloud-based solution in the era of remote work, collaboration and getting real-time access to critical information has never been easier.
NetSuite is a highly customizable platform and can accommodate a wide range of business needs. Solutions are rarely a one-size-fits-all making it tricky to determine the exact cost to implement NetSuite.
Even so, here’s a breakdown of the different NetSuite ERP pricing components, some additional costs and considerations for your type of business, to give a close estimate of how much you need to set aside for NetSuite implementation costs.
You can also check out NetSuite pricing calculator for more information.
Understanding the Basics of NetSuite Pricing
Understanding NetSuite ERP pricing is crucial for businesses considering its implementation. Here are the basic factors that impact NetSuite ERP pricing:
How NetSuite's Pricing Compares to Other ERP Solutions
Compared to other ERP solutions, the main reason businesses go for NetSuite is due to its customization flexibility and ease of use as a fully cloud-based platform.
Although it comes with a higher initial subscription cost, NetSuite’s comprehensive built-in features can save you a lot of resources from additional customizations. It is also frequently more budget-friendly compared to enterprise-level ERPs such as SAP given the comparative features.
Check out our guides for more in-depth comparison between ERP solutions:
Comprehensive Breakdown of NetSuite Pricing
In this section, let’s dive further into the different variables under each primary pricing factor like licensing, add-on modules, and implementation costs.
NetSuite Licensing Costs: Editions and User Licenses
First, you need to identify the appropriate NetSuite edition for your business. This depends on the size of your company and number of NetSuite user licenses required.
NetSuite Edition Pricing
NetSuite Edition pricing is typically influenced by the size of your business and the scale of your operations. The specific NetSuite features in each edition include:
NetSuite Service Tiers
Once you’ve decided on the NetSuite edition, you need to select the appropriate NetSuite Service Tier for your business. These further shapes the level of support, features, and resources available to you within NetSuite.
User Licensing: Per User Cost Analysis
The actual NetSuite pricing per user extends beyond a simple calculation of the number of users multiplied by the per-user fee. To calculate the per user cost, you must aggregate all costs from licensing, add-on modules, and implementation costs and then divide that by the total number of active users.
There are also various types of NetSuite licenses, so it's crucial to understand the specific access requirements for each employee:
NetSuite Modules and Their Pricing
Core Modules: CRM, ERP, and More
NetSuite has 2 integral components - ERP and CRM.
NetSuite's ERP module forms the backbone of operational efficiency. From financial management and order processing to inventory control and supply chain management, the ERP module ensures a synchronized approach to enterprise operations.
On the other hand, the CRM module within NetSuite is more than just a customer database; it's a strategic tool designed to cultivate lasting relationships.
Industry-Specific Modules: Financial, Inventory, Commerce, etc.
As your business grows, it's crucial for your NetSuite instance to evolve as well. Industry-specific modules offer a diverse array of features to make sure NetSuite continuously aligns with your growing needs. Some of the popular modules most businesses acquire are:
NetSuite Financial Management Modules
- Advanced Financials
- SuiteBilling
- Revenue Management
- AP Automation
- Bill Capture
- Planning & Budgeting
- Account Reconciliation
- Multi-Book Accounting
- OneWorld
- Dunning Letters
- Fixed Assets Management
- Electronic Bank Payments
NetSuite Inventory and Order Management Modules
- Advanced Inventory Management
- Smart Count
- Advanced Order Management
- Grid Order Management
NetSuite Commerce Modules
- SuiteCommerce
- SuiteCommerce Advanced
- SuiteCommerce InStore
- SuiteCommerce MyAccount
- NetSuite Connector
NetSuite Human Resources Modules
- Payroll
- SuitePeople HR
- SuitePeople Performance Management
- SuitePeople Workforce Management
NetSuite Professional Services Automation Modules
- SuiteProjects
- Project Management
- OpenAir
NetSuite Supply Chain Modules
- Procurement
- Warehouse Management System (WMS)
- Ship Central
- Demand Planning
- Quality Management
- Work in Process (WIP) and Routings
- Work Orders and Assemblies
- Advanced Manufacturing
A-La-Carte Module Options
Every business’ needs are unique depending on their industry background. NetSuite offers a range of a-la-carte module options allowing you to tailor NetSuite to these specific needs leaving out unnecessary functions. Modules mentioned above can be purchased a-la-carte.
E-commerce Solutions: SuiteCommerce Pricing and Options
If you run an eCommerce business, you might want to check out NetSuite SuiteCommerce. It unifies your eCommerce platform with your core business processes giving a 360-degree view of your order and inventory management, supply chain management, financials, and CRM.
Checkout NetSuite e-Commerce costs for a more in-depth analysis and costs.
NetSuite Implementation Costs
Depending on the complexity of the requirements, NetSuite implementations range from $20,000-$75,000 or around 2-3x the annual NetSuite license fee.
To break that down further, here are the different cost drivers during each phase of the NetSuite implementation:
Phase 1: Discovery & Research Phase
Successful NetSuite implementations require a comprehensive discovery and research phase to serve as a solid foundation to build the project upon. The expenses associated with this phase typically hinge on an hourly consulting fee which can range from $100-$250 per hour with a total span of around 30-55 hours.
Phase 2: Setup & Deployment Strategies
Now, this is the fun part. The setup and deployment phase are the most time-intensive part of the project as this is where the majority of the work gets done. From setup, configuration, to deployment, this is when you establish your NetSuite instance. This phase also includes walkthroughs and testing to make sure that the system is as expected.
The total cost and duration highly depend on the extent of your requirements. If minimal customizations or integrations are required, and everything aligns with the initial plan, this process can sail smoothly.
Phase 3: Customization and Development Costs
Still depending on your requirements, customization and development costs may be $10,000 and upward. Still, it is possible to not incur any costs for customizations, therefore having no impact on your budget.
Phase 4: Integration and Connector Costs
Often, there may be other existing systems or applications you need to run your business aside from NetSuite. By integrating NetSuite with these other systems, you achieve a unified platform where all your data and processes are connected.
NetSuite Integrations
Depending on the type of integration you need, costs range between $3,000-$5,000+ annually. Typically, there is also a one-time implementation fee, which can range between $6,000-$9,000, contingent on the extent of development work required.
NetSuite Connectors
NetSuite Connectors allow you to automate data transfer between NetSuite and your eCommerce platforms. The same is applicable for point of sale (POS) systems and third-party logistics (3PL) providers to eliminate issues caused by manual data entry and data exports.
These connectors are usually pre-built and require less manual coding in NetSuite. Cost these connectors can vary, spanning from a few hundred dollars per month to a few thousand dollars per month. Additionally, there might be an initial setup fee associated with their implementation.
NetSuite provides connectors for:
- Shopify
- Amazon
- eBay
- WooCommerce
- And more!
NetSuite for Different Business Sizes and Industries
NetSuite for Small Businesses
For small businesses, NetSuite SuiteSuccess for SMBs offers customized solutions specifically crafted to address standard business requirements. It is a comprehensive package that comprises pre-configured applications, services, and support to facilitate swift implementation, enabling businesses to experience NetSuite and its advantages in no time.
NetSuite SuiteSuccess for SMBs
NetSuite SuiteSuccess for SMBs offers a purpose-built solution tailored to overcome the challenges small and medium-sized businesses (SMBs face). This ready-to-deploy framework incorporates industry best practices, for a quick, cost-effective, and scalable NetSuite implementation.
NetSuite Solutions for Large Enterprises
Given intricate organizational structures and global operations, large enterprises need robust solutions to efficiently manage their processes. NetSuite addresses these requirements through offerings that emphasize global scalability and advanced functionalities.
NetSuite OneWorld and Advanced Solutions
NetSuite OneWorld is a must for large enterprises operating internationally. It guarantees smooth operations across various locations with NetSuite features like multi-subsidiary management, multi-currency support, and global financial consolidation. It also offers advanced customization features to address specific industry needs and intricate business processes.
Additional Costs and Considerations in NetSuite
We have covered the basic NetSuite ERP costs like licensing, add-on modules, and implementation. To get you running further, consider some of these additional services you might need along the way.
Ongoing Technical Support and Training
NetSuite packages may or may not include ongoing NetSuite training and technical support. Costs for NetSuite training and support can vary significantly, ranging from $2,000 to $15,000 or more depending on the depth of the training required.
Understanding Support Packages
Check out the different support packages available and what they can do for you:
Training Resources and Costs
Whether you aim to optimize your instance or require assistance, there are several resources available for you to explore:
NetSuite's Additional Services and Features
Oracle NetSuite also offers a variety of additional services and features to complement its core ERP functionality, for example:
NetSuite Sandbox: Usage and Pricing
NetSuite Sandbox is used to test changes to the system configurations, settings, and preferences before applying them to production. The cost is equivalent to 10% of the total combined expense of your NetSuite modules and users.
Strategies to Optimize and Save on NetSuite Costs
Oracle NetSuite is an investment and it’s not uncommon for businesses to want to optimize the cost against business outcomes. Here are some cost-saving tips you need to take note when availing of any NetSuite service:
Effective Cost-Saving Tips
Maximizing SuiteAnswers and Other Resources
Before investing in support services, consider exploring SuiteAnswers. SuiteAnswers is a complimentary self-service support platform within NetSuite, offering a wealth of solutions to numerous common queries. It includes training videos, support articles, and best practice documents.
Negotiating Contracts and Price Increases
Don't hesitate to negotiate! Inquire about the availability of financing options with your provider to come up with a more manageable funding structure.
Evaluating Storage Needs and Scalability
Depending on the volume of data required. NetSuite offers service tiers that come with specific data limits for daily or monthly transactions like:
If there are expectations of an increase in business data or transactions for any reason, it is advisable to plan your budget accordingly.
Financing and Purchasing Options
Oracle NetSuite offers various purchasing alternatives. Some of options to choose from are:
Choosing Between Licensed Providers and Direct Purchase
Going for a licensed NetSuite provider allows for greater flexibility in personalized implementation as these providers may already offer pre-built integrations and custom bundles.
On the other hand, direct NetSuite purchase is especially suitable for smaller companies with less complex business processes and minimal reliance on various software solutions. While NetSuite provides out-of-the-box integration options, it's crucial to note that support is limited to NetSuite.
Financing Options for NetSuite Licensing
You may inquire with your provider about the availability of financing options. Managing monthly payments may be more feasible than securing the funds to cover 3-5 years of NetSuite costs all at once.
Conclusion
Multiple factors influence NetSuite pricing, including licensing, add-on modules, and implementation costs. Additional considerations for ongoing support, training, and service tiers should also be taken into account.
However, based on size and industry, businesses like yours can customize NetSuite by only availing modules and packages that align with your requirements to reduce expenses.
Adopting cost-saving strategies, such as maximizing your resources and negotiating contracts, will further contribute to optimizing the overall value of your NetSuite investment. This comprehensive approach empowers you to make informed decisions and successfully navigate the intricacies of NetSuite pricing for long-term success.
