We would really like to give a precise answer to the question: “How much will ERP implementation cost?” Unfortunately, there are too many variables involved, from the number of users to integrations and customizations.
In this financial guide, we will reveal what the cost of ERP consists of, what factors influence it, what hidden costs may arise, and how to avoid them. This will allow you to calculate an approximate budget for your business.
We spoke with Volodymyr Tkachenko, Head of Sales at SelfERP, to lift the veil on the implementation process and show the realities of ERP project budgets.
How is The Cost of ERP Implementation Determined?
The cost of implementing an ERP system, in particular Odoo, consists of three main components: licenses, hosting, and implementation itself. Let's take a closer look at each of them.
Licenses Odoo
The license prices are standard for the US market and are set at Odoo’s main pricing plans:
- Standard at $24.90 per user per month.
- Custom at $37.40 per user per month.
Both plans provide full access to all Odoo applications.
Odoo also offers the One App Free Plan, giving unlimited users access to a single app at no cost. It’s good for startups or small businesses to try basic tools, while a 15-day free trial lets users explore the full platform.
The Standard Plan is tailored for small businesses that need access to a wider range of applications and full support. It enables companies to improve efficiency through hosting, system updates, and integrations. While it accommodates business growth, it may not fully meet the needs of organizations requiring highly customized workflows.
The Custom Plan is aimed at large organizations or specialized industries that need bespoke solutions. It offers dedicated support, advanced hosting capabilities, and the option for custom integrations. While highly flexible and powerful, this plan may be too complex for smaller teams or businesses with simpler requirements.
Hosting
95% of customers choose hosting from Odoo — Odoo.sh. This is convenient because it integrates seamlessly with all Odoo modules. And SelfERP recommended this one. Other advantages include a user-friendly interface and a high level of security, which is especially important for businesses.
Hosting includes system hosting, backup, and environment support. Its cost depends on the selected plan, number of users, and resources (processors, storage, additional environments). For an average project on Odoo.sh, it usually starts at $100 per month. You can try to calculate the approximate amount for your individual needs on the official website or check with a partner.
Implementation
This is the largest component of an ERP project budget. The cost includes hours spent on configuration, customization, development, testing, and verification of business hypotheses. In SelfERP's experience, a typical project rarely takes less than 100 hours — this is possible in cases with limited functionality and no customizations.
The choice of partner becomes a key factor, particularly in terms of the cost of their hourly rate and the number of hours required to complete the project.
“We always explain the cost structure to our clients: licenses are paid directly to Odoo S.A. (Belgium), and the implementation cost is paid to our team as an official partner. Our role is to help configure the system according to business needs, using the existing Odoo functionality and our expertise. This approach is usually understandable and transparent for most customers”
The Drivers of ERP Implementation Pricing
Several factors influence the cost of implementing ERP, from system tweaks and integrations to how much your team participates. Understanding them helps avoid surprises.
1.Number of customizations and integrations. Making significant changes to the system that do not comply with standard Odoo logic increases the cost of the project. This is especially true for integrations with unique or outdated systems that require new code to be written.
Using ready-made modules for integrations (such as Shopify or WooCommerce) helps reduce costs. It also depends on which platform your website is currently on and how many additional integrations will be needed in the future.
A larger number of projects and integrations affects not only the cost of implementation but also hosting, as the load on the system increases.
2. Number of users. A larger number of users increases the cost of licenses.
3. Customer involvement. The more work the customer team does (e.g., data migration), the fewer hours are required from the integration partner, and the cheaper the project becomes. When the customer is ready to adapt their business processes to the basic functionality of the system, the cost of implementation decreases.
“Any processes that differ significantly from standard Odoo logic may require additional configuration and resources. This is especially true for integrations for which there are no ready-made solutions. Such implementation may take more time and money”
Additional and Hidden costs You Might Not See
Beyond the main implementation expenses, there are additional and hidden costs that can impact your ERP budget. For example:
- If changes occur on the side of external services (e.g., Shopify or a bank), the integration module may need to be updated and reconfigured. This work is usually paid for separately based on the partner's hourly rate. It is difficult to predict the exact number of such changes and how often they will occur.
- Upgrading to new versions of the system involves additional costs. The more individual modifications and customizations there are, the more expensive the upgrade will be. Therefore, we recommend planning upgrades once or twice a year.
- Technical Support. We offer support packages with corresponding SLAs so that customers can predict costs and receive quick responses to requests.
“The budget often increases due to additional development, such as new code, testing, and bug fixes are difficult to estimate in advance. Also, mistakes in the planning or discovery phase can force you to redo work, which increases costs. So choosing an experienced integrator helps avoid unnecessary costs and rework”
How to Keep ERP Implementation Costs Under Control?
From our experience with clients, we know what can drive up costs. These smart tips to avoid overspending on ERP. So we recommend:
- Listen to your integration partner. Adherence to the Odoo implementation methodology and the practical experience of your partner will help you avoid overspending.
- Conduct Discovery, especially for large companies. This stage helps to understand what exactly the client needs and what budgets are expected. Upon completion of Discovery, you will have a ready-built and well-thought-out architecture. This helps the client understand and be confident that Odoo is right for them, as well as plan budgets. We discussed the Discovery phase in a separate article.
“Sometimes it is difficult for customers to understand what integrations they need or to fully appreciate the capabilities of Odoo and ERP. We help them figure it out — we explain the processes, calculate the costs, point out potential bottlenecks, and advise on how to work around them — both at the presale stage and during discovery”
Final Thoughts
Implementing an ERP system involves multiple cost factors — from licenses and hosting to customizations, integrations, and ongoing support. By understanding these components, planning ahead, and collaborating closely with an experienced partner, you can manage your budget effectively, avoid unexpected expenses, and ensure a smooth, successful implementation that truly supports your business growth.