If you’re considering whether NetSuite is the right solution for your organization, one of the primary factors to understand is cost. NetSuite pricing is based on a few different components.
How much does NetSuite cost?
At a high level, the cost of NetSuite is determined by the price of the software along with implementation costs.
Software costs are based on:
- User licenses – how many people in your organization will need access to NetSuite
- Base software – core functionality necessary to run your business in NetSuite
- Additional modules – any tools not included as part of the base software
The cost of user licenses is a flat rate per license. Additional user licenses can always be added later as needed.
NetSuite is different from other ERP software because it’s an “out of the box” solution – meaning the core software functionality is included. However, there could be additional modules that are key for your organization that need to be purchased as well.
What's included in NetSuite?
Every edition of NetSuite includes the following functionality:
- Financial Management
- General Ledger, Accounts Receivable, Accounts Payable
- Sales CRM
- Marketing Automation, Sales Force Automation/Opportunity Management, Case Management/Customer Service Management, Partner Relationship Management
- Project Management
- Order Management
- Human Capital Management
- Multi-Currency and Multi-Language Capabilities
- Built-In Business Intelligence
Common “add-ons” purchased with NetSuite
Additional modules you purchase are priced either individually or as pre-packaged bundles based on industry. The price per module or bundle is also dependent on the edition of NetSuite you are implementing.
- Fixed Assets
- Revenue Management
- Oracle Planning and Budgeting Cloud Service (PBCS)
- Project Management
- Ecommerce and Retail Management
Benefits of NetSuite
NetSuite pricing model
Your company’s size will determine the NetSuite edition you purchase – Starter, Mid-Market or Enterprise – as well as how many users you need.
There are three editions of NetSuite:
NetSuite pricing is a subscription model. This cost of your subscription is determined by the annual price of your software package – the core software, number of user licenses, and any added functionality – divided by the number of months in your payment terms. Payments can be made monthly, quarterly or annually. License contract terms range from one to five years.
Implementation costs and requirements
While consultant rates in the United States for Tier 1 software, such as Oracle, Microsoft and SAP, can run up to a couple hundred dollars an hour, there are many factors to consider in the overall implementation budget. When you partner with a qualified NetSuite consulting firm for an implementation, you’re pairing with a team of certified experts who have substantial technical experience. They should have a proven methodology with relevant experience in your industry.
Other key requirements you should expect from a consulting firm:
- Tools for team communication and project management
- Measurable milestones and goals
- Leadership to navigate the progress and change management
- Trusted expertise and recommendations for the technical and functional aspects of NetSuite
- Ability to build a strong and efficient internal team to rely less on external help following the implementation
Ways to save on NetSuite
There are numerous ways to save money on NetSuite pricing.
NetSuite SuiteSuccess is a pre-configured product designed for your industry and made for businesses that require business tools in as soon as 100 days.
Organizations who choose to implement NetSuite with SuiteSuccess receive a total solution with tools configured by industry to improve your implementation and go live faster. You receive pre-designed functionality based on leading practices for your industry, pre-built industry-specific reports and pre-built dashboards and roles with set up based on job functions.
This instance of NetSuite is then implemented within 100 to 140 days, using a methodology created especially for SuiteSuccess projects. The main difference between the SuiteSuccess methodology and NetSuite’s standard is the “stairway” approach – a shorter initial implementation that means at the end of phase one, you’re live on NetSuite and can use the later phases for additional functionality.
Keep it simple
When considering any additional functionality during implementation, add only what you need right now. Keep your implementation simple – use phase one of your project to get critical business functions up and running and save the peripheral tools for later phases.
Help for helpers
Is your business a nonprofit? If so, you can apply to implement NetSuite through the NetSuite Social Impact program at a reduced cost or no cost. Nonprofits of all sizes are eligible for a base donation of NetSuite’s nonprofit solution with a no-cost activation. This would include all the financial operations of a small organization and has no recurring cost. Beyond that, nonprofits that qualify through Social Impact can access tools like grant accounting, nonprofit budgeting, FASB reporting and more at a reduced cost.
NetSuite pricing for startups
While NetSuite is an affordable option for businesses that need one platform on which their business can be run, some small businesses and startups may need a more inexpensive option. The NetSuite SuiteSuccess Starter Edition is an option that provides a total solution designed with small businesses in mind. Most small businesses use either a low-cost activation or an accelerated implementation to implement in a cost-effective way.
The NetSuite Professional Services Activation is a low-cost activation of your solution in which NetSuite consultants convert your business data, configure your system, go through a process walkthrough and more. Users are set up with roles in NetSuite, the software is running with the most integral tools and includes 95 or more pre-built reports and pre-configured roles with dashboards and business intelligence metrics.
Pay for what you need
Don’t pay for users or modules you don’t need yet. Users and modules can be added at any time and are priced per month. Adding new users or functionality is prorated – each user or module is a flat rate per month for the remainder of your software license term. Additionally, if you outgrow the edition of NetSuite you’re using, you can seamlessly transition to another edition – no system migration needed.
Use a partner
Finally, while you can purchase the software and implement with NetSuite directly, a partner can often provide more cost savings. NetSuite partners like Terillium provide industry knowledge, expertise and advice as you navigate the selection and implementation process. Working with a partner will help you determine the best cost-effective approach. Partners have competitive research and pricing models available to them in order to determine you’re getting the best price possible.