Guide to Manufacturing Software Pricing Models


Pricing your products and services can be daunting. If you work in the manufacturing industry, you know how competitive it is, so pricing plays a vital role in how innovative your manufacturing business is.

In addition to pricing strategies, manufacturers need to choose the right pricing and payment model to make their value-based pricing approach as efficient as possible. Additionally, manufacturers are moving from traditional pricing models such as time and hardware-based pay-per-instance to new pricing models such as subscriptions and freemium pricing models.

With that in mind, we’ve put together a comprehensive guide to help you compare the prices of top-rated manufacturing solutions. You will also learn how manufacturing tools are licensed and priced (including the price of the best systems) and the full extent of the manufacturing software price range. Ultimately, this will help you find the ideal product that matches your price.

How much does manufacturing software cost?

Manufacturing software pricing depends on the specific features you need, the size of your business, and the industry you are in. Other factors affecting price include additional modules, training, initial implementation, number of users, and ongoing support.

The price of manufacturing software really depends on your answers to the following questions. These will help you understand your business needs and identify how much money you are likely to spend on manufacturing software.

1. How many users will interact with this software?

2. What is the size of your business: small, medium or enterprise?

3. What kind of software features do you need: basic or advanced?

4. What type of price commitment are you comfortable with? By subscription or long-term contract?

5. Does free or open source software meet your business needs?

6. Does the software offer add-ons? If so, what will you need?

Depending on how you answer the questions above, the same system could cost you hundreds of dollars less or thousands more. For example, Megaventory can cost as low as $190 per month or as high as $1,900 and more per month depending on the features you choose.

Manufacturing Software Price Ranges

Manufacturing software vendors, like those in many other industries, typically offer multiple purchase options depending on your current infrastructure and budget. We have created a range of each type.

  • Perpetual License Models require upfront payments for unlimited system access for as long as you need it.
  • Subscription pricing models generally do not require an upfront fee and are paid for as part of a monthly or annual subscription.

subscription price ranges

Manufacturing software can start from $25 and go up to $949 per user per month, while one-time license fees start at around $1,000. For advanced accounting systems with more users, you can expect to pay upwards of $2,299 per month or $51,000+ for a license. Some providers offer free versions with limited functionality.

We can classify the different tariff plans according to the number of users as basic, high-end, and Advanced. The pricing of these three price ranges goes from low to high as the basic plan only covers a few basic features of the management software while the premium plans include both basic and advanced features. Moreover, the advanced plan is the most expensive among the three due to more advanced features that support large teams or businesses. For your reference, below is an overview of some popular crafting software.

cost of some popular crafting software

cost of some popular crafting software

Only products with publicly available price information have been included in this table. We’ve summarized publicly available pricing sources, including vendor websites, as of February 20, 2022, starting with the lowest monthly prices (excluding annual discounts) for packages that include basic features of a software category. We list prices for more advanced packages (per user, when available) that also include basic software features. As always, your specific business needs may differ and the final price will vary.

A note on features:

Manufacturing software, also known as manufacturing ERP software, helps companies manage orders and plan production work using accurate bills of materials and inventory management to ensure availability of all components. Additionally, we identify some related features that organizations purchasing manufacturing software may also need or want to consider: sales management, quality control, capital budgeting, field service management, and warehouse management. Core or basic features include BOMs, order management, production planning, and inventory management.

Upfront and recurring manufacturing software costs

When we evaluate manufacturing or manufacturing ERP software quotes, you will notice three main categories of pricing models: perpetual license, subscription license, and free and open source. You may already have a basic understanding of these options, but let’s consider the full up-front, recurring, and hidden costs of each:

initial and recurring manufacturing software costs

1. Perpetual license

  • What it is:
  • You pay an upfront license fee to own the manufacturing software and use it forever.

  • Commonly used for:
  • On-premises deployments where the system is hosted and maintained internally on your own servers.

  • Initial costs:
    • A one-time license fee (may cost around $1,000 per user per month)
    • Hardware (e.g. servers)
  • Recurring costs:
    • Monthly, annual, or ad-hoc maintenance (e.g. updates, patches, and upgrades)
    • Premium support offerings (e.g. extended phone support hours)
  • Hidden costs:
    • Customization (e.g. reporting and analytics capabilities)
    • Integration with existing systems (e.g. ERP, HR)
    • Overtime IT staff (or hiring more IT staff) to maintain servers

2. Subscription License

  • What it is:
  • You pay a monthly fee to use the manufacturing software for a specific term.

  • Commonly used for:
  • Cloud-based deployments, where the system is hosted remotely and accessed on compatible devices over the internet.

  • Initial costs:
  • Recurring costs:
    • Monthly subscription fee per provider/user (this can range from $25 to $949)
    • Premium support offerings (e.g. extended phone support hours)
  • Hidden costs:
    • Customization (e.g. reporting/analytics capabilities)
    • Integration with existing systems (e.g. ERP, HR)

3. Free and open source license

  • What it is:
  • There is no charge to use the manufacturing software, and you are free to use, modify, and share it.

  • Commonly used for:
  • If your IT budget can’t accommodate manufacturing software, you should try free tools to manage your project workload without burning your pockets.

  • Initial costs:
  • Recurring costs:
  • There are no recurring charges. You can use it freely with limited functionality.

  • Hidden costs:
    • Customization (e.g. reporting/analytics capabilities)
    • Integration with existing systems (e.g. such as accounting, project management, etc.)

Additional costs to be expected

Once you are familiar with the different pricing models, it is equally important to understand additional fees when implementing new manufacturing software. These extra expenses are universal no matter which provider’s pricing model you’ve chosen, so be sure to factor the following into your budget:

Often overlooked costs
  • Data migration: Transfer your customer data from your old software by exporting it as files that can be imported into the new system. This is often a surprise cost to buyers.
  • Training: Depending on the extent of staff training for the new system, this can cost anywhere from nothing to several thousand dollars. These days, vendors offer a host of free online training materials, such as webinars and how-to videos, that can help reduce those additional costs. However, you might find it helpful to hire an implementation specialist to get your staff up to speed as soon as possible to reduce costly downtime. It will usually cost more.
  • Maintenance and updates: It is important to know what maintenance and support services are offered by the vendor and whether they are included in your software subscription or license fees. On the other hand, you may already have employees on your team to provide maintenance and support. It is important to be sure of the support offered by your software provider, in case your team is unable to maintain the tool, which could directly affect the return on investment that your software was supposed to provide.
  • Hardware and IT: Are additional purchases or upgrades to your existing infrastructure necessary to implement the software? A common requirement may be the need to upgrade each employee’s hardware, such as computers or mobile devices.

It’s important to consider these often overlooked costs before you start evaluating vendors. This way you can add them to your budget initially.

What are the best manufacturing software packages?

Are the manufacturing tools listed in this guide within your software budget? If so, compare their features and read real user reviews of 100+ similar products listed on our Manufacturing Management category page.

To note: This article is intended to inform our readers about the concerns related to doing business in the United States. It is in no way intended to provide financial advice or endorse any specific course of action. For advice on your particular situation, consult your accountant or financial advisor.


Comments are closed.