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5 Tips to Negotiate the Best ERP Deal

After finding the ERP solution that will best help your business, you are now tasked with getting the best ERP deal you can. One important aspect to remember is that ERP prices aren’t set in stone. Here are five tips to keep in mind as you negotiate for the best ERP deal.

1. The Starting Point

ERP vendors expect their customers to negotiate for the best ERP deal. Keeping that in mind, chances are the price that the sales rep quotes you will probably be the straight from their price book. This price quote will be marked up considerably to ensure that the vendor makes the most profit possible from the deal, and it’s up to you to contact existing customers and to do enough research to bring the price down.

2. Don’t Stop Looking at Other Vendors

Don’t give your sales rep the impression that the deal is done. A sales rep is likely to be far more generous if they think there is a chance they could still lose your business to a competitor. Continue to evaluate other ERP solutions and make sure your sales rep knows that the lines of communication remain open with other ERP vendors.

3. Don’t Be Swayed by Free Stuff

Many ERP vendors will offer free features or modules in lieu of a price discount. Unless these are on your original list of requirements, don’t take the bait. This is often a ploy to gain stronger market share for an underperforming product, or to get rid of products that are soon to become obsolete.

4. Serve as a Reference

By volunteering to be a reference for the vendor, you can usually receive a discount on your ERP solution. If the vendor accepts you as a reference, these terms will be outlined in the contract. Before you take this approach to get the best ERP deal, make sure to consult with your legal team about any possible repercussions from this.

5. Negotiate on More Than the ERP Software

When negotiating for the best ERP deal, it’s important to remember that along with purchasing the ERP solution, you will also need training, consulting and possibly maintenance. If the price of the ERP software isn’t budging, look to negotiate on these other fees associated with an ERP software solution.

Keeping these tips in mind when negotiating the purchase of your ERP solution will help ensure that you are getting the best ERP deal. Remember that when you are looking for an ERP solution, price shouldn’t be the determining factor. Focus on getting the ERP solution with the features you need and negotiate the price later.