How much does NetSuite cost?

From back-office financials to front-end customer experience, NetSuite is a fully unified business management platform built in the cloud. When evaluating a new software solution cost is an important factor, among many others. This post will walk you through the ins and outs of NetSuite pricing to help you determine what your total cost of ownership of NetSuite could be.

NetSuite offers a unique modular approach to subscription licensing for customers by providing product configurations designed to fit your business needs. It is designed to scale as companies grow, which means that you only pay for what you need today, but have the ability to add on as your company expands or needs change. There are four components to calculating the price of NetSuite:

1. Base package
2. User licenses
3. Add-on modules
4. Service tier

All NetSuite customers have a base package and a number of user licenses, then can choose to add on more modules or upgrade their service tier from the standard level to add more horsepower.

Customers begin with choosing a base package that starts at a base monthly fee and includes NetSuite ERP and NetSuite CRM.

To meet the needs of businesses in specific industries, NetSuite developed SuiteSuccess packages, which include pre-defined roles, dedicated process flows and KPIs, turnkey setup, and hundreds of prebuilt reports and dashboards based on leading practices in a certain industry. For example, the Manufacturing edition includes assembly management, work orders, shop floor control, and cost allocation, while the Retail package offers merchandising, marketing, business intelligence, and channel integration.

NetSuite SuiteSuccess packages each have a Standard or Premium edition. Below are some of the most popular SuiteSuccess packages:

• Financials First
• Manufacturing
• Wholesale Distribution
• Retail
• Professional Services
• Software
• Food & Beverage
• Apparel, Footwear & Accessories

For a list of all SuiteSuccess packages, plus which modules are included in each package, download this comprehensive guide.

Included in each base package is NetSuite ERP which contains all the features you would expect in an enterprise resource planning (ERP) system for managing financials and more:

• Financial Management
• Financial Planning
• Order Management
• Production Management
• Supply Chain Management
• Warehouse and Fulfillment
• Procurement

Additionally, NetSuite CRM is also included in each base package and offers the features of a customer relationship management (CRM) system to get a 360-degree view of your customers. NetSuite CRM can also be licensed as a standalone solution for a base monthly fee.

• Sales Force Automation
• Customer Service Management
• Partner Relationship Management
• Marketing Automation
• Quote/Order Management
• Commissions
• Sales Forecasting

In addition to the base package, you must purchase a license for each NetSuite user. There are two different types of user licenses:

• Self-service license: For users who need only limited access to NetSuite, such as entering time and expenses or accessing an intranet for HR policies. Self-service licenses are sold in packs of 5 and a pack of 5 is around the same cost as a full user license, providing significant savings. 
• Full user license: This is the standard NetSuite license that most users have. It provides access to all functionality in your NetSuite implementation.

It is important to note that the Standard edition of each base package has a limit to the maximum number users you can purchase before having to upgrade to the Premium edition. Additionally, several NetSuite base packages include the cost of a certain number of full users and all come with a 5-pack of self-service users.

To meet specific business requirements, there are a number of add-on modules that can be added to your NetSuite implementation. You can add these modules at any time during your subscription term, but if you need to remove a module you no longer need, this can only be done at the time of your contract renewal. 

Some of the most popular modules Rand Group clients choose to utilize include:

• Fixed Asset Management
• Advanced Financials
• Advanced Inventory
• Manufacturing WIP and Routing
• SuitePeople
• OneWorld
• Work Orders and Assemblies
• SuiteProjects
• SuiteCommerce
• Warehouse Management
• SuiteBuilling
• Advanced Procurement
• OpenAir

Note: Many SuiteSuccess editions designed for specific industries already have applicable add-on modules included, in which case it would not be necessary to pay additional for those add-ons.

NetSuite offers different levels of service tiers based on user count, file storage, monthly transactions, and integration needs to allocate appropriate system resources and performance capabilities. The Standard Service Tier is included in all base editions of NetSuite at no additional charge.

The Standard Service Tier includes:

• Up to 100 GB file cabinet storage
• Maximum of 100 users
• Up to 1 SuiteCloud+ license
• 200k maximum monthly transaction lines

We found that the vast majority of NetSuite customers are on the Standard Service tier and only the largest NetSuite deployments require a Premium or above service tier. For a list of all available service tiers and the differences between each, download this comprehensive guide.

In addition to the cost of the NetSuite software, there is also a one-time cost involved in implementing NetSuite. This cost includes evaluating your specific business requirements, configuring and customizing NetSuite to your unique needs, any integrations with third-party systems, training, data migration, and assistance during go-live. Implementations can either be performed by a NetSuite Solution Provider or by NetSuite direct. 

How much does a NetSuite implementation cost? A NetSuite implementation typically ranges between $30,000 and $300,000, depending on the complexities of your organization and the number of companies, customizations, and integrations. The NetSuite implementation cost is normally 1-2 times the cost of the NetSuite annual subscription, meaning the more modules and users you require, the more it is going to cost to implement the system. 

It is possible to find a cheaper NetSuite implementation. However, any implementation that is less expensive normally involves offshore resources that often do not fully understand US accounting and business processes, have a language barrier, and operate in a different time zone. Companies that utilize these low-cost implementation options typically find themselves with either a failed implementation or an implementation that only scratches the surface of what NetSuite can do. To correct a failed, or sub-par implementation can often cost 2x what it would have taken to do the implementation right the first time. 

Ready to start using NetSuite at your business? Rand Group is an experienced NetSuite Solution Provider and has helped numerous clients across industries implement NetSuite to transform their operations. Contact one of our software consultants today who can help you determine the cost of NetSuite for your business.