What Does An Inventory System Cost?
.svg)
- The Real Cost of a Big ERP
- Adding Up the True Cost
- How Luminous Prices Differently
- Big ERP vs. Luminous at a Glance
- Questions to Ask Before You Sign
- Common Questions
- Investing in Growth, Not Headaches
Choosing an inventory system can feel like walking a financial tightrope. Big-name Enterprise Resource Planning (ERP) systems advertise low monthly prices (around $1,000-$3,000), but that comes with a lot of caveats.
The Real Cost of a Big ERP
Here's the truth behind those enticing numbers:
- Long-Term Lock-In: Those low prices often come with 1-3 year contracts. Realize a few months in that the system is hurting growth? You're stuck paying for a solution that hurts you.
- Gradual Price Hikes: Those initial quotes can gradually get bumped up to $7,000-$10,000 a month. You're left with expensive software that doesn't serve you.
- Customization Costs: Most big ERPs need to be customized before they actually work for your business, and that costs a lot of money.
- Implementation Fees: Customization and implementation fees are usually collected up front, and can easily run a couple hundred thousand dollars, minimum.
Add these together, and it's no wonder a company can die by implementing too large an ERP.
Adding Up the True Cost
Using the ranges from the video, here's how a “low-cost” ERP quote can add up over a three-year contract:
- Year 1: Quoted at $2,000 a month = $24,000
- Years 2–3: Bumped to $8,000 a month = $192,000
- Customization and implementation: $200,000 up front
That's roughly $416,000 over three years, for a system that was pitched at $2,000 a month. And because the implementation fees are due up front, much of that cash leaves your business before the system is even helping you.
How Luminous Prices Differently
- Packages that fit: Luminous works with your company to find the package that works best for you.
- A clear ceiling: Our most expensive package is $3,000 a month, with no secret price hikes.
- Free implementation: No customization or implementation fees up front. Learn more about what implementation looks like.
For a deeper breakdown, see How Much Does Luminous Cost?
Big ERP vs. Luminous at a Glance
- Starting price: Big ERP, $1,000–$3,000 a month. Luminous, a package that fits your needs, topping out at $3,000 a month.
- Price over time: Big ERP, often bumped to $7,000–$10,000 a month. Luminous, no secret price hikes.
- Commitment: Big ERP, typically one to three years. Luminous, talk to our team about the package that fits.
- Customization: Big ERP, usually required, and expensive. Luminous, built for modern e-commerce flows.
- Implementation: Big ERP, a couple hundred thousand dollars up front. Luminous, free.
Questions to Ask Before You Sign
- How long is the contract, and what happens if the system isn't working for us?
- Is the monthly price locked in, and how much can it increase at renewal?
- Will the system need customization to fit our workflows, and who pays for it?
- What are the implementation fees, and when are they due?
- What's the total cost over the full contract, not just the first month?
Common Questions
Why do big ERPs end up costing so much more than the quote?
Long contracts, price increases over time, required customization and large up-front implementation fees all add to the original monthly quote.
Does Luminous charge for implementation?
No. Per this video, implementation is free.
What's the most Luminous costs per month?
Per this video, the most expensive package is $3,000 a month, with no secret price hikes.
How do I find the right package?
Talk to a Luminous representative. The team works with your company to see which package works best for your needs.
Investing in Growth, Not Headaches
Luminous uses pricing that fits your needs, because the goal is to take your business to the next level, not into bankruptcy. Hear Jared's own story in Implementing NetSuite Would Have Killed My E-comm Business.
Ready to save money and upgrade your inventory system? Book a demo today and see how Luminous can simplify your journey!
Video transcript
What Does an Inventory System Cost?
What does an inventory system cost? Big ERPs will quote you a low price of $1,000 to $3,000 a month, but that comes with a lot of caveats.
The Hidden Costs of a Big ERP
First, you have to commit to that system for one to three years. So if you're a couple of months in and realize it's hurting growth rather than helping, well, too bad.
Next, that initial $1,000 to $3,000 a month quote gradually gets bumped up to $7,000 to $10,000, and you're stuck using this really expensive software that isn't serving you.
On top of that, you normally have to customize the system for it to actually work, and that costs tons of money.
Lastly, they're going to make sure they get their money up front, with customization and implementation fees that will run you a couple hundred grand, minimum.
Add all of these pieces together, and it's no wonder a company can die by implementing too large an ERP.
How Luminous Does It Differently
Luminous, however, does things differently. Financially, we work with your company to see what package works best, with our most expensive being only $3,000 a month, with no secret price hikes. Implementation is free.
We use pricing that fits your needs, because we want to send you to the next level, not filing for bankruptcy. Go to joinluminous.com and speak with one of our representatives about how you can save money and upgrade your inventory system with Luminous.