How much does an ERP cost in Australia?
For a small or mid-sized Australian manufacturer or wholesaler, the real cost of an ERP is three things added together: the software, getting it set up, and the years you keep paying for it. Off-the-shelf systems usually charge per user every month plus a separate implementation. A custom build from Praxa Tech is a one-off price, mostly under $35,000, with no per-user fees.
The three parts of the price
The software itself. Most off-the-shelf ERP and inventory systems are subscriptions, priced per user per month, often with higher tiers for manufacturing features. The monthly figure looks small. Multiply it by your headcount, by twelve, and by the number of years you stay, and it rarely does.
Implementation. Setting the system up, moving your data across and training your team is usually quoted separately, by the vendor or a partner. For complex manufacturers this is often the largest single number. Toomey NC, a Queensland CNC machining business, was quoted $50,000 to $60,000 just to implement an off-the-shelf system. Read the Toomey NC case study.
The years after. Price rises, extra modules, add-ons for the parts that don't fit, and the cost of every new hire who needs a login.
The costs that are easy to miss
Per-user pricing quietly punishes growth: every person you hire costs another licence, so people end up sharing logins or staying out of the system. Workarounds cost time every day, in spreadsheets kept beside the system for whatever it cannot do. And a long implementation costs more than its invoice, because the business runs on the old way until it is finished.
To see what your current subscriptions add up to over five years, try the software cost calculator.
What a custom ERP costs
A custom ERP is built once, around how your business already runs, and you own it. Praxa Tech prices builds as fixed amounts, set in writing after discovery: about $15,000 for a wholesale or distribution business, $25,000 for a small manufacturer of around 10 staff, and $35,000 for a complex manufacturer of around 20 staff. Bigger builds go upwards from there. There are no per-user fees at any headcount. Hosting and support are quoted separately. See pricing.
Which is cheaper?
It depends on your headcount, how long you stay, and how well the off-the-shelf system fits. A business with a handful of users and simple stock may be well served by a subscription. A manufacturer with 15 or more people, real production and a system that only half fits usually finds a one-off build costs less within a few years, and fits better from the first day.
Where to look next.
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Pricing
What it costs
Three examples: $15k, $25k and $35k.
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Free calculator
Software cost calculator
What your per-user subscriptions add up to over the years.
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Case study
Toomey NC
CNC machining. The whole business was running out of one man's head.
What people ask next.
Is ERP pricing usually per user?
Most off-the-shelf ERP and inventory systems are subscriptions priced per user per month. Check each vendor for current pricing.
Is implementation included in the subscription?
Usually not. Setup, data migration and training are commonly quoted separately, by the vendor or a partner.
What does a Praxa Tech build cost?
Most builds come in under $35,000, fixed in writing before we start, with no per-user fees. See pricing.
Does an ERP replace Xero or MYOB?
Not with us. Your accounting stays in Xero or MYOB and the ERP connects to it.
See what yours would look like.
Tell us how your business runs and we'll build a working demo of it, free, in 48 hours. Then you'll have a real number, not a guess.