THINKING ABOUT AN ERP SYSTEM?

If your company has outgrown its current accounting system and you're exploring ERP options, keep in mind that there's significant room for negotiation. Major ERP providers like NetSuite, Sage, SAP, and Microsoft Dynamics have aggressive sales teams trained to push for high yearly licensing fees. They understand that once you commit, you're likely to stick with their system for years, making it a critical decision for your business.

However, you can turn the tables and use their eagerness to close the deal to your advantage. In a recent negotiation I handled, we were initially quoted licensing fees of $30,000 per year or more, plus an additional $25,000 for implementation. By carefully reviewing the contract and evaluating the accounting team’s capability to handle certain tasks internally, I successfully negotiated the licensing fee down to approximately $16,000 per year, locked in for five years, and reduced the implementation cost to just $8,000.

Smart negotiation can lead to substantial savings, making the transition to a new ERP system more manageable and cost-effective.