Getting to grips with discounts in Netsuite's pricing
Is Netsuite pricing good value?
Many software providers offer discounts for signing up to their services. But do these introductory offers actually offer any value in the long term?
Would you rather pay more in the long run for your software, or know what the pricing is from the get-go? In today’s discount-driven world, Netsuite pricing like many others is heavily discounted to entice you in, making it hard for businesses to know if they’re getting a good deal.
Software providers like Netsuite have a trusted reputation, often pricing solutions at a heavily discounted rate and becoming a top contender in the ERP buying market.
However, slashed up-front costs by such providers come with a big question mark. Players like Netsuite quote huge discounts of up to 50% off their solutions, and this pricing is very appealing to businesses wanting to enhance their processes cheaply. But it is all smoke and mirrors? As a business, will you pay more in the long run?
Discounts aren’t all bad
There’s certainly nothing wrong with bagging a bargain! They are brilliant for consumers and businesses alike, as one gets the discounted product while the other gets the trade.
Similarly, businesses are looking to onboard new software to better their customers’ experiences without having eye-watering costs to contend with. That’s why many businesses run headfirst to the likes of Netsuite to make the most of that heavily discounted pricing. However, things aren’t always as they seem. Before you sign the dotted line with a solution in the sale, make sure you do your due diligence.
What’s the catch on Netsuite pricing?
It’s not so much a catch, but more what’s in the small print that your business needs to bear in mind. With a whopping discount of up to 50% and perhaps discounted annual renewals, you need to assess what’s included in that discount to ensure you’re making the right investment. Here are five things to look out for when investigating a heavily discounted solution:
1. Annual renewal caps
It’s important to get a clear picture of what renewals will also be discounted so you can ensure your business will be able to handle the fees. For example, Netsuite could say that your pricing for the next two annual renewals won’t increase by more than 5%. However, two years isn’t far away, and doubling the price of what you’re paying now could be significant. Ensure you have the financial means to pay for these renewals because in a flash, it will be back up to full price again with potential price increases.
Alternatively, it will work out cheaper, in the long run, to go with a software provider that is free of ongoing charges. At OrderWise, there are no ongoing charges to access the software once you’ve bought it, providing your business with a lifetime of usage.
Ultimately, neglecting the costs of software renewal could cause strain on your business later down the line. If you choose to go with Netsuite’s discount, it’s better to get a rough estimation of what that cost will look like in two, three and five years’ time before agreeing to anything.
2. Excluded additional items
Don’t forget about what you’ve added to your solution since you made your initial purchase. With Netsuite, your discount will only include what you purchased on day one, excluding any additional items such as users or modules added since the initial purchase. Make sure you calculate these costs ahead of time and factor in their full price, rather than the discounted price you initially received for these items.
If you’re looking to include WMS in your package from Netsuite, you are likely to end up with an additional contract that needs pricing up with your reseller or partner. This annual subscription charge could be for many things, including packing users, HHT licences and bolt-on support. If you’re looking to incorporate WMS, you are better off going with an end-to-end provider such as OrderWise that has these costs included in the price.
In addition, many software providers including Netsuite only include basic support packages. This will only help your business in a matter of emergency such as getting locked out of the system. For your day-to-day queries, you will often need to pay for a support package. While you might not need it a few years down the line, you are likely to need a helping hand during the initial on-boarding process. That’s why we offer six months of complimentary support at OrderWise as standard.
3. Not a final cost
In many cases, the figure you’re getting from a heavily discounted product is an estimate of pricing, not the final proposal. The software provider will later go through a statement of works to determine the exact services required by your business, and they often don’t include costs for implementation or training. With Netsuite pricing, you do get 12 months of access to their training portal, which is beneficial, but after the 12 months is up, renewing it isn’t cheap.
In comparison, Orderwise provides a fully detailed breakdown of pricing for new customers, including all of the services, training, implementation and project management. The bottom line is, make sure to read the small print on your discountedsoftware solution before making it a viable contender.
4. Finance isn’t always an option
You are likely to want a pay-monthly option for your new software, and finance is offered by many providers. For example, OrderWise offers monthly payments for the first three or five years upon purchase.
However, if your business is unable to take out finance to make the payments, you need to take into account the cost of paying upfront for the year or at best, quarterly. When heavily discounted software jumps from 50% off to full price, it could become costly for your business quickly if you are unable to take out finance to make the payments. In this situation, you need to ensure your business can afford the software in its entirety, not just the discounted pricing.
5. You don’t own the software
It’s worth bearing in mind that Netsuite is a Software as a Service (SaaS), so you will pay them forever and never own the software. Some businesses are fine with this, but you need to be sure you’re comfortable with it before making a decision based on a bargain.
There are other software providers out there, including Orderwise that will allow ownership of your software at a better price in the long run. Be sure of your business requirements before rushing into a purchase of a SaaS model.
After breaking down the points, it’s clear that a large discount on pricing from the likes of Netsuite isn’t always as it seems. Due to our lifetime promise, OrderWise can be more than 50% cost-effective when compared over three to five years with equivalent systems.
If you want to discuss a solution with OrderWise, visit our contact page to get in touch with a member of our friendly support team.