The Business world is fast evolving, a lot of changes are happening here and there. Companies all over the world are embracing globalization, exploring ways of simplifying their processes, reduce cost, maximize profits, all in a bid to remain competitive. All these and many more are shaping the business world. Things are changing very fast, likewise customers desires, and expectations have never remain the same. More than ever before, customers have more options, as regards what they want, who they want to do business with, and how much they are willing to pay for such. This and many more led to the development of ERP software.
ERP (Enterprise Resource Planning) software has been in existence as far back as 1960, though was referred then to as MRP II (Manufacturing Requirement Planning). The name ERP was introduced during the last decade of the 20th century. Because of the numerous advantages erp software offers, a lot of medium to big organizations all over the world prefer to run their businesses using the software.
While there are lot of erp software available, not all can be said to offer the same value to customers. The value talks about the benefits, the worth of such a software to a particular business. It is this, that would determine the price for such software. The worth of such a software is determined by how importance it is to the success of the business. If it is so critical to the success of an organization, they would in turn be willing to offer any amount to have it. if otherwise, they might even want to do away with such.
There are lot of factors, a business would look at in determining the reasonable price they can offer for an erp software. Three of these are:
1. Ease of Customization
While there are lot of erp software available, not all of them can be easily customized to suit the need of a particular business. Business needs do change with time, and business manager would prefer having a software that can be tailored for such changes. The more easy an ERP software can be modiffied for this, the more the value it add to a business, which would also affect positively its price.
2. Customer Support
Time is a critical component in today business world. Unnecessary down time can cost a business million of dollars. Organization would be willing to offer good money for a product if there are sure of getting adequate support on it every time is needed.
3. Large Client Base/ Feedback
This can also affect the price a business would want to offer. if a vendor has a very large customer base, and the feedback from most of the customers are positive. This would definitely affects its price positively.
There is no substitute for value when determining the reasonable price of an erp software. The economic value it adds to a business would determine the reasonable price for such a software.