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Are you considering NetSuite for your business in 2024 but unsure about the associated costs? This powerful Oracle ERP can be a game-changer, but understanding its pricing structure can be a bit tricky, as it’s not straightforward. NetSuite’s pricing in 2024 involves several components. I
In this blog, we will cover all the factors that affect pricing and how you can easily estimate the cost of NetSuite ERP for your business.
This is the foundational cost for using NetSuite, covering the essential ERP functionalities required to run your business.
This cost is based on the number of people who will be using NetSuite. Each user needs their own license.
The core package of NetSuite includes basic functionalities. However, businesses often have specific needs that go beyond these basics. Additional modules provide these specialized features, tailored to particular industries or business processes.
It’s like downloading additional apps to your smartphone to get more capabilities beyond the basic pre-installed ones.
For example, a retail company might need advanced inventory management, which can be addressed by adding the Inventory Management module. This module offers features like real-time inventory tracking, automated stock replenishment, and forecasting tools, tailored to the needs of retail businesses.
Similarly, a manufacturing firm might require the Manufacturing module. This module provides tools for managing production processes, including work order management, bill of materials (BOM) creation, and production scheduling, essential for efficient manufacturing operations.
This includes the expenses for setting up and customizing NetSuite to fit your specific business requirements. It covers everything from initial setup to integration with other systems.
With years of experience helping clients select the right modules for their businesses and implementing robust solutions, our NetSuite consultants have created a easy steps to understand it.
To determine the cost of NetSuite, identifying the appropriate edition for your business is important. This selection hinges on the size of your company and the required number of user licenses.
NetSuite offers various editions based on company size and user licenses:
| NetSuite Edition | Description |
|---|---|
| Starter/Limited Edition | Supports up to 10 user licenses, suitable for small businesses with a single legal entity and up to 50 employees. |
| Standard/Mid-Market Edition | Ideal for mid-sized companies needing 11-1,000 licenses, often managing two or more legal entities. |
| Premium Edition | Offers unlimited licenses for larger enterprises with extensive user needs. |
| Enterprise Edition | Designed for very large organizations with multiple legal entities, requiring over 1,000 user licenses. |
| NetSuite Edition | Users Supported | File Storage Limit | Monthly Transaction Lines Limit |
|---|---|---|---|
| Standard | Up to 100 | 100GB | 200,000 |
| Premium | Up to 1,000 | 1TB | 2 million |
| Enterprise | Up to 2,000 | 2TB | 10 million |
| Ultimate | Up to 4,000 | 4TB | 50 million |
Selecting the correct edition and service tier helps your NetSuite investment align with your business’s size and complexity, providing the right features and capacity for your needs.
| NetSuite Edition | Included Features |
|---|---|
| NetSuite CRM | Marketing automation for email marketing and campaign management. |
| Sales force automation with lead management and sales forecasting. | |
| Real-time reporting and analytics for data-driven insights. | |
| Upsell, quote, and order management to streamline sales processes. | |
| Partner relationship management for efficient collaboration. | |
| NetSuite ERP | Financial management for handling ledgers, payables, receivables, and assets. |
| Inventory management for tracking stock and optimizing levels. | |
| Order management to streamline order capture, fulfillment, and billing. | |
| Supply chain management for demand planning and vendor management. | |
| Global business management for compliance and international operations. |
NetSuite’s core package includes ERP and CRM modules across all editions. For some businesses, this package is sufficient. However, many businesses require additional modules to meet their specific needs. NetSuite offers pre-built modules that can be added to enhance the platform’s functionality.
Modules are available in bundled suites known as editions. For instance, the SuiteSuccess Manufacturing Premium Edition combines core ERP, CRM, and six additional NetSuite modules customized for manufacturing. Each edition’s price varies based on the included modules and the business’s specific NetSuite edition.
NetSuite’s SuiteCommerce eCommerce component offers two levels:
| Feature | Site Builder | SuiteCommerce | SuiteCommerce Advanced |
|---|---|---|---|
| Business Size Suitability | Smaller businesses | Medium to Large businesses | Medium to Large businesses |
| Customization Options | Basic | Moderate | Advanced |
| Analytics | Limited | Moderate | Advanced |
| Scalability | Limited | Moderate | High |
NetSuite offers modules customized to industry needs:
| Category | Modules/Solutions |
|---|---|
| Financial Management | Advanced Financials, SuiteBilling, Revenue Management, Planning & Budgeting, OneWorld, Fixed Assets Management, and more. |
| Inventory & Order Management | Advanced Inventory Management, Advanced Order Management, and Grid Order Management. |
| Commerce | SuiteCommerce, SuiteCommerce Advanced, SuiteCommerce InStore, and SuiteCommerce MyAccount. |
| Professional Services Automation (PSA) | SuiteProjects, Project Management, and OpenAir. |
| Supply Chain | Procurement, Warehouse Management, Demand Planning, Work in Process (WIP), and Advanced Manufacturing. |
Individual NetSuite modules can also be licensed separately based on specific business needs, allowing businesses to customize the platform as required.
NetSuite implementation typically costs 2-3 times the annual license fee for standard setups without extensive customizations or integrations. Total implementation costs range from $10,000 to $100,000+, largely due to varying project requirements. Key factors affecting pricing include discovery scope, customizations, development, integrations, and staff training.
| Implementation Phase | Hours | Total Price |
|---|---|---|
| Discovery & Research | 50-150 | $7,500-37,500 |
| Setup & Deployment | 100-300 | $15,000-75,000 |
| Customizations | Varies | $0-10,000 |
| Integrations | Varies | $0-10,000 setup fee, $0-$5,000 annually |
This critical phase lays the groundwork, assessing current software and workflows, analyzing business processes, and identifying gaps and customization needs. Costs range from $7,500 to $37,500+ for 50-150 hours of consulting, with fees generally between $150-$250 per hour.
The most time-consuming phase, typically taking up to three times the discovery phase’s time, involves configuring, customizing, and testing NetSuite. Depending on the project’s scope, setup and deployment can cost from $15,000 to $75,000 or more for 100-300 hours of work.
Custom development may be needed if out-of-the-box modules are insufficient. Costs vary widely, potentially adding $10,000 or more to the project. Common customizations include:
Pre-built bundles from third-party providers can offer more affordable solutions than custom development.
Integrating other platforms into NetSuite is important for data centralization:
| Service | Integrations | Connectors |
|---|---|---|
| Description | Third-party software integrations with NetSuite, facilitating data exchange and workflow automation. | Pre-built connections between NetSuite and other platforms, usually requiring no coding for setup. |
| Cost (Annual) | $2,500-$5,000+ | Typically less expensive than integrations |
| Setup Fees | $1,500-$10,000+ | Generally no setup fees |
| Examples | Common integrations include Salesforce, Shopify, and HubSpot. | Examples may vary based on specific connectors and business needs. |
They can seamlessly connect NetSuite with platforms like Amazon, eBay, and ShipStation.
Third-party providers often offer additional connectors, expanding integration options beyond NetSuite’s native connectors.
Ongoing technical support and training for NetSuite vary in terms of inclusion and cost based on the provider. If not included in the implementation package, training and support expenses range from $2,000 to $15,000 or more, depending on the number of employees, the depth of the training required, and its duration. A support plan make sures that employees are well-versed in using NetSuite’s features, leading to smoother operations and maximizing the return on investment. Custom training can be critical for businesses seeking to optimize their usage of NetSuite effectively.
NetSuite’s cost includes a monthly user fee, but that’s only one aspect. The base platform cost, license duration, add-on modules, and customizations significantly impact the actual per-user cost. To estimate the true cost, it’s essential to sum up all these expenses and then divide by the total number of users
NetSuite User Licensing Cost
Understanding the types of user licenses is important for cost optimization:
| Feature | Full User License | Employee Center License |
|---|---|---|
| Access | Regular access to the platform | Limited access for specific tasks (e.g., project time tracking, expense reporting) |
| Roles | Includes standard roles (e.g., accountant, sales rep) and custom roles | Limited roles, typically tailored for specific tasks |
| Usage | Suitable for employees needing comprehensive access and functionality | Suitable for users performing limited actions |
When deciding where to purchase NetSuite, businesses can choose between licensed solution providers or purchasing directly from NetSuite.
| Option | Ideal For |
|---|---|
| Licensed Provider | Businesses with complex processes or customization needs. |
| Direct Purchase from NetSuite | Smaller businesses with simpler processes that do not require extensive customization or advanced integrations. |
NetSuite’s pricing can change based on several factors:
Each industry has unique requirements that NetSuite addresses through its flexible, modular platform. By tailoring its offerings to specific industries, NetSuite enables businesses to streamline their operations and improve efficiency, ensuring that they meet their unique challenges effectively.
| Industry | Description |
|---|---|
| Manufacturing | Inventory and supply chain management capabilities for efficient production workflows, including demand forecasting, supply chain management, and production planning. |
| Retail & eCommerce | Tools for unified online and in-store shopping, real-time inventory visibility, personalized marketing campaigns, and streamlined order management to enhance customer experiences. |
| Professional Services | Project management and resource planning tools including resource management, time tracking, billing, and project accounting for efficient workforce management and project profitability monitoring. |
| Software Companies | Financial management, subscription billing, and revenue recognition functionalities tailored for handling complex licensing models and SaaS revenue streams. |
| Wholesale Distribution | Advanced inventory management and demand planning tools for efficient tracking and management of inventory across multiple locations, along with integrated CRM for B2B customer relationships. |
| Healthcare and Life Sciences | Compliance tools, financial management capabilities, and inventory management features tailored for healthcare and life sciences organizations. |
| Nonprofit Organizations | Customized financial reporting, fund accounting, and features for managing donations, grants, and volunteer resources for nonprofit organizations. |
| Food and Beverage | Specialized inventory and quality control features including batch and expiry tracking, lot traceability, and supply chain management for the food and beverage industry. |
| Education | Features for managing student information, tracking alumni relations, handling budgeting, admissions, tuition billing, financial aid, and institutional performance reporting for educational institutions. |
ERP Peers specializes in providing customized NetSuite solutions, guiding businesses through efficient module selection and seamless implementation. Our expertise in optimizing NetSuite for various industries ensures that businesses to make the best of NetSuite. Ready to improve your operations? Contact ERP Peers today to use our expertise in maximizing the value of your NetSuite investment.
Our customer support team is available for help.