{"id":8934,"date":"2014-07-24T11:16:35","date_gmt":"2014-07-24T11:16:35","guid":{"rendered":"https:\/\/ca.syspro.com\/blog\/tips-for-erp-consultants-going-down-market-pricing\/"},"modified":"2025-03-19T10:14:16","modified_gmt":"2025-03-19T08:14:16","slug":"tips-for-erp-consultants-going-down-market-pricing","status":"publish","type":"post","link":"https:\/\/ca.syspro.com\/blog\/erp-for-manufacturing\/tips-for-erp-consultants-going-down-market-pricing\/","title":{"rendered":"Tips for ERP Consultants Going Down-Market: Pricing"},"content":{"rendered":"<p>One of the biggest difficulties that consultants going down-market have is getting the price for their services in the right ballpark for small- and medium-sized businesses.<\/p>\n<p>Speaking from the perspective of an ERP vendor, we often come across prospective clients who have misleading expectations for the price of ERP set by a consultant who didn\u2019t understand the lower end of the market.<\/p>\n<p><!--more--><\/p>\n<p>One of our partners was telling me recently of a financial controller at an 18-person job shop that he met who was resistant to the idea of ERP. After some digging, it turned out that the company had previously engaged a consultant who quoted $900,000 for an ERP system.<\/p>\n<p>You don\u2019t need to be in mid-market ERP for very long to know that anything approaching a million dollars for a small manufacturer is not going to pass.<\/p>\n<p>And so this company chose to stick with using a basic accounting package and a bunch of spreadsheets, based on the advice of a consultant who didn\u2019t understand ERP at the bottom end of the market.<\/p>\n<p>We fixed that by the way, but it is a common occurrence.<\/p>\n<p>What had happened was that the consultant took his experience implementing ERP systems for clients with already highly-refined processes and applied it to a business whose processes had not yet been refined. They are completely different situations and need to be treated differently.<\/p>\n<p>Targeting your pricing at the wrong level hurts everyone involved. You lose business; and your clients end up stuck using inefficient and outdated processes built around ad-hoc or outdated tools.<\/p>\n<p>In my last post on <a href=\"https:\/\/ca.syspro.com\/blog\/owning-or-running-erp\/tips-for-consultants-going-down-market-details-vs-focus\/\" target=\"_blank\" rel=\"noopener noreferrer\">ERP consultants going down-market<\/a>, I talked about the balance between focus and details. In particular, I mentioned that, as you go down-market, focus becomes increasingly important. It is in that balance between focus and details where getting the right pricing for ERP projects lies. SYSPRO recognizes that you have to <a href=\"http:\/\/www.syspro.com\/services\" target=\"_blank\" rel=\"noopener noreferrer\">tailor services to the maturity of the organization<\/a>.<\/p>\n<p>You can\u2019t inundate small clients with technical details and you shouldn\u2019t try and make their business processes perfect. In the words of athlete <a href=\"http:\/\/en.wikipedia.org\/wiki\/Kim_Collins\" target=\"_blank\" rel=\"noopener noreferrer\">Kim Collins<\/a> \u201cStrive for continuous improvement, instead of perfection.\u201d Focus on helping them find an ERP solution that delivers a rapid return on their investment while being able to grow with them.<\/p>\n<p>The processes at most mid-market companies are not highly refined, so their ERP implementations don\u2019t require a lot of re-engineering to preserve their processes. It is more likely that their processes are ad hoc and just getting them set up with an out of the box ERP implementation will improve their processes.<\/p>\n<p>Maybe, over the lifetime of the client, they will spend in the millions on ERP, but deliver value first, give them some time to see that value, and then slowly work with them to refine their business processes and ERP implementation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>One of the biggest difficulties that consultants going down-market have is getting the price for their services in the right ballpark for small- and medium-sized businesses. Speaking from the perspective of an ERP vendor, we often come across prospective clients who have misleading expectations for the price of ERP set by a consultant who didn\u2019t &#8230; <a title=\"Tips for ERP Consultants Going Down-Market: Pricing\" class=\"read-more\" href=\"https:\/\/ca.syspro.com\/blog\/erp-for-manufacturing\/tips-for-erp-consultants-going-down-market-pricing\/\" aria-label=\"Read more about Tips for ERP Consultants Going Down-Market: Pricing\">Read more<\/a><\/p>\n","protected":false},"author":148,"featured_media":6176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-8934","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-erp-for-manufacturing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tips for ERP Consultants Going Down-Market: Pricing<\/title>\n<meta name=\"description\" content=\"Pricing for ERP systems in the SMB market requires an understanding of special characteristics and requirements of businesses in that market\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ca.syspro.com\/blog\/erp-for-manufacturing\/tips-for-erp-consultants-going-down-market-pricing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tips for ERP Consultants Going Down-Market: Pricing\" \/>\n<meta property=\"og:description\" content=\"Pricing for ERP systems in the SMB market requires an understanding of special characteristics and requirements of businesses in that market\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ca.syspro.com\/blog\/erp-for-manufacturing\/tips-for-erp-consultants-going-down-market-pricing\/\" \/>\n<meta property=\"og:site_name\" content=\"SYSPRO Blog\" \/>\n<meta property=\"article:published_time\" content=\"2014-07-24T11:16:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-19T08:14:16+00:00\" \/>\n<meta property=\"og:image\" 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