Netsuite Pricing Overview
Interested in the fastest growing cloud ERP on the planet? One of the most important steps to deciding if Netsuite’s right for your business is understanding its pricing model.
Most of NetSuite’s pricing is based on the unique needs of the customer. So the fastest way to get Netsuite’s price for you is to set up a consultation with a NetSuite Solution Provider or NetSuite themselves
However, finding out the numbers is not everything. Understanding how NetSuite’s value scales and possible associated expenses is also important to determine if NetSuite is a good fit for your business
Netsuite’s Pricing Model
Even though there are several factors to be considered for accurate NetSuite pricing, overall, the model is not complicated. The best way to look at it is a step-by-step process.
Step 1. Choose Your Channel
NetSuite’s prices can change significantly based on the channel you choose to purchase it. You can purchase Netsuite directly but you also have the option to purchase it though specialized Netsuite partners that can add value to the deal in a number of ways.
The VAR (Value-Added-Resellar) channel is the more commonly used option for NetSuite purchases as Netsuite users can rely on industry specialists to come up with ideal and advantageous NetSuite configurations. VAR partners also tend to get better discounts on pricing due to close relationships with NetSuite. It is not uncommon for a NetSuite customer to save significantly going through a VAR.
Step 2. Choose Your Edition
There are 3 “Editions” of NetSuite you can choose from, each of which comes with different functionality and price
- CRM – This edition provides CRM functionality and is for users that want to access NetSuite’s marketing automation functionality. It is significantly less expensive than the other two editions but comes with fewer features.
- Standard – Standard is the edition most companies implement. Standard includes the strong financial management features NetSuite is most famous for but also inventory management functionality, as well as everything that comes with the CRM edition.
- OneWorld – OneWorld is the largest edition, and it includes all of the functionality available in the CRM edition and the standard edition, but it also adds functionality for companies with multiple subsidiaries and does business on an international scale.
Step 3. Find Your NetSuite Level
Once you choose your edition, depending on company factors like size, location, needs, and number of legal entities, you will be placed in a specific tier NetSuite refers to as “Levels” .
- NetSuite Limited: For small businesses who need less than 10 user accounts, have only one legal entity, and less than 50 employees.
- NetSuite Mid-Market: For companies that need more than 15 users but under 1000. Modules can be added to configurations at this level.
- NetSuite Enterprise: For companies with more than 1,000+ users, multiple/international entities, and advanced support needs
Step 4. Add Your Modules
Once you have chosen your edition and tier you can now look at possible add-ons to expand on the value of your configuration. NetSuite add-ons are called “modules” and are packages of functionality designed for specific industries and verticals. Today, NetSuite offers over 80 different modules. These are not required, but provide such great value that most NetSuite users end-up picking more than one. Popular NetSuite modules include:
- Advanced Financials
- Advanced Inventory
- Advanced Order Management
- Advanced Procurement
- Advanced Software
- Contract Renewals
- Manufacturing WIP & Routings
- Project Management
- Resource Allocation
- Revenue Recognition
- SuiteAnalytics Connect
- SuiteCommerce Advanced
- Work Orders & Assemblies
When going over your requirements, it is an important step to understand which features are available for you in the basic implementation of NetSuite and what features are available via modules. For more information on NetSuite modules and the features they include, click HERE for more info
Step 5. Finalize Other Options
- NetSuite Sandbox – A Sandbox is an excellent tool for users who do a lot of customizations and require a test environment to design and improve new processes. If you plan on being on the cutting edge of NetSuite customization, I would strongly consider adding a sandbox to your configuration.
- NetSuite Support – NetSuite offers support in tiered options. You can decide how much or how little of NetSuite’s help you want going into the purchase/implementation.
- NetSuite Implementation Packages – NetSuite offers special packages of integrations/modules/functionality based on your industry. Depending on your needs, you may find more value in a packaged solution.
Other NetSuite Costs
It is important to understand when buying a product as useful as NetSuite that you are also buying something more than software. You are buying an evolving business platform with almost unlimited potential. Realizing some of this potential may come with some associated expenses, which usually occur around the time of purchase
- Implementation – Implementing Netsuite usually comes with expenses associated with consultants and Netsuite specialists. The implementation phase is also a critical part of the NetSuite process, so it is strongly recommended to compliment or even supplement your team with experienced NetSuite consultants who can get the most value out of Netsuite for your business.
It is also recommend that NetSuite’s recently created SuiteSuccess program be used to help new users find the right path for optimal NetSuite implementation.
- Integration – What good is the centerpiece of your business suite if it cannot communicate with the other applications? Integrations add value in a number of ways including process automation and real-time data updates but still require up-front costs. Conventional wisdom is to plan ahead for these integration solutions and their costs accordingly.
- Customization – NetSuite is extremely customizable, and building entire verticals of functionality inside of their platform is possible with the right development talent. Adding custom features to NetSuite will improve overall efficiency, but it can add to Netsuite costs too. Just like with integrations, it is usually a good idea to plan ahead for these customizations and deploy them during the implementation phase.