How Much Does ERP Really Cost? A Straightforward Guide

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Hello everyone! My name is Mickey Collins, and I’m the COO here at Alchemy 365. Today, we’re tackling an important topic that often feels like it’s lost in a black hole on the internet—ERP pricing.

If you’re a small business still using Excel spreadsheets, QuickBooks, or even pen and paper, you might be thinking about moving to a cloud-based ERP. Maybe you assume it’s too expensive, or you simply have no idea what it costs. I’ve been there too. You go through the sales process, from discovery calls to demos, and then get a proposal that completely shocks you. But don’t worry—we’re here to break it all down.

  1. ERP pricing has two main costs: Licensing ($70–$125/user/month) and implementation (consultants charge $225–$300/hour).
  2. Implementation costs vary by business size: Small (100–200 hours), Mid-sized (300–500 hours), Large (500–1,000+ hours).
  3. Alchemy 365 offers discount pricing: $205/hour for prepaid 100-hour blocks.
  4. Total implementation costs range widely: From $25,000 to $250,000, depending on complexity.
  5. Use Alchemy 365’s pricing calculator: Get a detailed cost estimate based on your business needs at alchemy365.com.

Licensing Costs

Licensing is the more straightforward part. Unlike standard SaaS subscriptions, ERP pricing isn’t just “pay per user and go.” Since ERP integrates all business processes, it’s more complex. However, for a general idea, most ERP solutions charge between $70 and $125 per user per month. This range applies to platforms like Microsoft Dynamics 365 Business Central, NetSuite, Acumatica, and Sage.

Implementation Costs

This is where the majority of expenses come in. Major ERP providers like Microsoft and NetSuite don’t implement the software themselves for most businesses—they rely on partners. That means you’ll need to work with an implementation partner, and their pricing varies widely.

Most ERP consultants charge $225 to $300 per hour for implementation. Some partners, like Alchemy 365, offer discounts for upfront payments—for example, we charge $205 per hour if you purchase a 100-hour block in advance. These hours never expire, allowing you to use them as needed.

Estimating Implementation Hours

So, how many hours will you need? That depends on your business size and complexity:

  • Small businesses (basic setup, finance module only): 100–200 hours
  • Mid-sized businesses (some customizations, data migration): 300–500 hours
  • Large businesses (complex processes, extensive data migration): 500–1,000+ hours

For small to mid-sized businesses, implementation costs generally range from $25,000 to $250,000, depending on your needs.

Get a Custom Estimate

To make it easier, we offer an implementation cost calculator on our website. Just visit alchemy365.com, click on “View Pricing,” and enter details like industry, number of users, and estimated implementation hours. The calculator will generate a detailed estimate for you—perfect for budgeting or presenting to stakeholders.

If you have any questions or need a more tailored breakdown, feel free to reach out!

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