There are many articles on how to select and implement software, but there is little information on how to negotiate and buy an ERP software. Those who don’t have much knowledge on the software can spend thousands of dollars more than they need too. Those that know the tricks of the trade can save enough to pay for several modules or a good amount of the implementation costs.
Timing matters to Purchase an ERP software
The first thing to keep in mind is timing. When you purchase the system is the key. You should be looking for a system before the actual requirements come. This will give you enough time to analyses different system before the deadline to place the order. Even more advantageous is making the purchase at the end of the software vendors fiscal year. ERP software providers in UAE are hungry for the deal. The need to meet their target, they want to do whatever it takes to boost their sales figures and show a successful quarter like any other business. Actually, any quarter end will is fine for going for a software, but yearend is the time when bonuses are given and certain sales incentives are in the mind of the sales person. You may also fall in trap of low cost software and heavy discounts, but remember there will be catch behind those big discounts. Most of the ERP companies in Dubai may not be having a local support and implementation team, they will be having their support team outside UAE.
Find system that matches your requirements.
You can find many ERP in UAE that does exactly what you need, there are probably several systems that offers the similar modules you need but you need to keep looking for ERP system and vendors that has system relevant to your industry. Keeping your options open and communicating that to the salesperson will only make them work harder for the deal. Let them know what exactly you require in the system and how you want to be implemented.
Beware of the licensing cost
When negotiating on the software pricing, keep in mind that you may not need all of the licenses up front. You don’t have to buy the entire suite of user license until you are ready to go live. Most vendor do not give life time licenses, it may be monthly subscription basis. Paying monthly for an ERP system may seem easy in the beginning but the total cost will be much more than you think in the long run. Get enough license required for testing and implementation phases and make sure to lock the pricing for a year or for the planned duration of the implementation.
Training and implementation
Implementation and how it will occur is also negotiable. The payment terms are negotiable. Some ERP software in Dubai can give you flexible payment options. And who will be on the project from the vendors side is also a point of discussion and can be changed for better implementation of the ERP. There are many things that you can plan out and ask of the software provider or reseller.
Remember that everything is negotiable. Software price, implementation rates, duration, and sometimes even annual maintenance contracts (those these are usually the most difficult). Perhaps negotiating when the maintenance begins will be possible. If you are splitting the user seats, have the maintenance pro-rated during the implementation phase.
Properly planned, the negotiation will more than pay for the time spent doing it correctly. Following the trusted vendor lead will never lead you to an overpriced system. Invest your money in the right software and vendor who can give higher return and low total cost of ownership. Some negotiation strategies will work and some will not. The key is to remember that you are driving the sale. Get what you want at the price and terms that is fair to you.
Brainsphere IT solution has become one of the best ERP software consultant in Dubai for helping to implement the right ERP solution for different industries like Contracting, Manufacturing, Trading, Equipment rental, Retails and service industries with a firm commitment to customer satisfaction. Unlike other ERP software vendors in Dubai Brainsphere’s consultants will help you to go for the right solution that fits your business and give you the options to choose what is required for you.