Understanding NetSuite pricing for small businesses

NetSuite, a leading enterprise resource planning (ERP) solution, provides a robust platform for businesses of all sizes to streamline their processes – from financial management and eCommerce operations to CRM and more. However, for small businesses seeking to leverage its expansive capabilities, understanding the solution’s pricing structure is crucial. In this blog, we’ll explore NetSuite’s pricing model for small businesses including its pricing components, implementation costs, and cost-saving strategies.

NetSuite is a cloud-based ERP system that integrates a range of functionalities to streamline operations. It combines core back-office, customer relationship management, and eCommerce functions in a single, unified platform. With a focus on flexibility and user accessibility, NetSuite delivers a suite of applications that manage various aspects of business operations including financials, order processing, inventory management, and supply chain management, providing organizations with a consolidated view of their core processes.

NetSuite’s robust platform is designed to scale, making it suitable for businesses of all sizes and industries. Transitioning to NetSuite from simpler systems like QuickBooks marks a considerable change not just in cost but in the depth of operational management and data analytics capabilities. This migration enables businesses to handle more complex processes, make data-driven decisions, and support growth without needing to transition to another system as their needs evolve.

NetSuite’s pricing structure adapts to the evolving needs of small businesses through its subscription-based, modular approach. This flexible system allows small businesses to tailor their NetSuite configuration, paying only for the functionalities they need at present while offering the option to expand as the business grows. Pricing is determined by four main components: the base package, user licenses, add-on modules, and the service tier.

NetSuite’s pricing begins with a choice of a base package, encompassing NetSuite ERP and CRM functionalities tailored to various industries through SuiteSuccess editions. These editions are tailored to various industries, incorporating specific industry practices and pre-defined roles and KPIs. The base package selection determines the starting price and incorporates essential management features, such as financials, orders, production, and customer relations.

For small businesses, the SuiteSuccess Starter Edition stands out as the most affordable choice. This edition includes essential features like ERP with G/L, Accounts Payable, Purchasing, Inventory, and more, tailored to streamline operations for up to 5000 orders annually. Additionally, it encompasses CRM functionalities, productivity tools, real-time dashboards, and basic customer support, providing a comprehensive solution to manage finances, orders, customer relations, and more. 

In addition to the base, businesses must purchase user licenses. These licenses fall into two categories: self-service licenses, which provide minimal access and are available in packs of five, and full-user licenses, which grant comprehensive access to NetSuite’s capabilities. The Starter Edition includes 5 self-service users and 5 NetSuite full-users, with the option to purchase an additional 5 licenses. However, if businesses require more than 10 full users, they would need to upgrade to a more robust and more expensive base package. This modular approach allows businesses to tailor their expenses according to their current needs while ensuring scalability for future expansion.

To cater to specific business requirements, NetSuite offers an assortment of add-on modules for financials, inventory, manufacturing process management, etc. These add-on modules can be integrated at any point during the subscription period, enhancing the system’s functionality as needed. For smaller businesses, these modules may not initially be needed, thereby lowering overall costs. Furthermore, some SuiteSuccess editions come with necessary modules included, reducing the need for additional purchases.

The service tier is determined by the size and complexity of a NetSuite deployment, ensuring an efficient scaling process. Initially, businesses are placed on the Standard Service Tier which caters to diverse business needs. This tier includes a maximum of 100GB of File Cabinet Storage, provisioning for up to 100 fully licensed users, and support for up to 200,000 monthly transaction lines. Additionally, businesses under this tier are entitled to one SuiteCloud+ license. For many small businesses, the Standard Service Tier proves to be sufficient, eliminating the immediate necessity for upgrades to higher tiers and ensuring cost optimization.

When evaluating NetSuite’s pricing for small businesses, it’s important to factor in the one-off implementation cost beyond the software subscription. The NetSuite implementation fee encompasses a thorough evaluation of business needs, customization of NetSuite to suit those needs, integration with existing third-party systems, comprehensive staff training, data migration, and onsite support during the transition to the new system. It is important to keep in mind that the implementation cost is normally 1-2 times the cost of the NetSuite annual subscription. This means that the more modules and users you require, the more it is going to cost to implement the system.

Rand Group offers two approaches to implementing NetSuite, each designed to accommodate different needs and budget constraints:

For smaller businesses with more straightforward processes, the implementation demands are often less intensive, possibly not requiring as many customizations or integrations. In such cases, opting for a rapid activation implementation could present a cost-effective alternative. However, organizations planning for significant growth or those with more intricate requirements may find the traditional implementation approach to be more beneficial in the long run, despite the higher initial cost and longer timeline.

Collaborating with a knowledgeable NetSuite Solution Provider like Rand Group ensures that regardless of the chosen path, the implementation process is managed efficiently, thus paving the way for businesses to fully utilize the power of NetSuite.

Implementing comprehensive software solutions like NetSuite can be a significant investment for small businesses. However, with strategic planning and insightful decision-making, there are several ways to optimize this investment and maximize cost-efficiency. Here are effective cost-saving tips for small business owners considering NetSuite:

• Select the right SuiteSuccess edition: SuiteSuccess editions are designed to meet the needs of specific industries, bundling essential modules, features, and capabilities. Choosing an edition that aligns with your business requirements can eliminate the need for further costly add-ons or customizations.
• Lock down pricing with a multi-year contract: Opting for multi-year contracts rather than annual renewals can secure current pricing, shielding your business from potential subscription cost increases. This not only provides financial predictability but also leads to savings over the long term.
• Opt for rapid implementation: A rapid implementation approach to NetSuite, focusing on leveraging out-of-the-box features with minimal customizations, can significantly reduce initial costs. By implementing essential features swiftly, you can also start realizing the return on investment sooner.
• Engage in self-training initiatives: Utilize online resources such as online tutorials, webinars, and documentation for self-training. Promoting self-training through these resources among your team can decrease the costs tied to formal training programs and facilitate a more versatile adoption curve.
• Work with the right NetSuite Solution Provider: Partnering with the right NetSuite solution provider can be instrumental in optimizing your NetSuite setup. They can offer guidance and support, ensuring that you are utilizing NetSuite to its fullest potential while avoiding unnecessary costs. For tips on how to select a partner, read our 6 criteria for choosing a NetSuite Partner whitepaper.

Rand Group is an established and trusted NetSuite Solution Provider dedicated to assisting small businesses in evaluating, implementing, and optimizing NetSuite for their unique needs. Our team of experts is committed to guiding businesses through every step of the NetSuite journey, ensuring a seamless transition and ongoing success.

• Cost evaluation: Rand Group can help you navigate the complexities of NetSuite pricing, working closely with you to determine the most cost-effective solution for your business while maximizing benefits.
• Comprehensive implementation: Our team provides comprehensive implementation services, from initial setup to configuration and training, ensuring that your NetSuite system is tailored to meet your business requirements and maximizes ROI.
• Post-go-live support: As your business grows, you need proactive support to maintain and optimize your NetSuite solution. Rand Group’s designated NetSuite support personnel provide guidance, configuration support, ongoing optimization, analytics, and customization assistance that your users need.

Partner with Rand Group today to unlock the full potential of NetSuite for your small business. Contact one of our experienced software consultants to embark on your NetSuite journey and discover how we can help you achieve your business goals with confidence.

Understanding NetSuite’s pricing is crucial for small businesses looking to harness the power of this premier ERP solution for sustainable growth. With its adaptability, comprehensive feature set, and scalable architecture, NetSuite presents a compelling investment opportunity. By partnering with the right NetSuite Solution Provider, such as Rand Group, small businesses can optimize their NetSuite investment for maximum ROI. As an experienced NetSuite Solution Provider, Rand Group has a proven track record of helping businesses across industries transform their operations. Contact one of our software consultants today who can help you determine the cost of NetSuite for your small business.