Buying software isn’t as straightforward as purchasing a product with a fixed price tag. Prices can vary significantly depending on multiple factors. So, how do you determine whether a given price is reasonable?
1. Choosing the Right Company – Who Are You Working With?
When evaluating a software provider, most people focus on the company's background—its founding year and the technologies it develops. A company with many years of experience tends to be more stable, giving you peace of mind that they won’t suddenly disappear.
The technologies they invest in also indicate whether they can support your business as it grows and adopts new innovations.
Beyond the company itself, it's essential to pay attention to the person you are working with.
- What role do they hold within the company?
- Do they truly understand your business needs?
- What is their professional background?
Why does this matter?
Understanding your needs is one thing, but the authority of the person you are dealing with is another.
- If you’re working with a sales representative, their ability to make decisions may be limited. Software projects often evolve during implementation, and the final product may differ by up to 60% from the initial vision. If your contact person lacks influence within their company, addressing these changes may become challenging.
- If you’re working with a project manager, a technology lead, or an executive, the situation is entirely different. They have the power to allocate resources, adjust policies, and ensure long-term support for your business.
Key Advice:
- Avoid being swayed by marketing hype—the real value lies in the company’s expertise and commitment.
- Independent software companies often prioritize customers more because every client is a crucial resource for them. A strong, long-term partnership with your provider can significantly impact your experience and the quality of service after implementation.
2. Choosing the Right Technology – Don’t Just Look at the Price, Look at the Differences
Software pricing isn’t just about features; it's about the underlying technology and scalability. A cheaper solution might not be a smart investment if it lacks flexibility for future growth.
Key Technological Factors to Consider:
🔹 Development Approach:
- Does the software rely on traditional coding, or is it built using low-code or no-code platforms? The latter allows for faster development and easier expansion.
🔹 Automation & AI:
- Does the software include automation capabilities to save time and reduce manual tasks?
- How advanced is its AI integration? There's no denying it—AI is seriously cool!
🔹 Integration and scalability:
- Can the software seamlessly integrate with other systems in your business?
- Scalability may seem simple, but it's actually crucial. With proper integration, future expansions become much easier.
🔹 User Management & Access Control:
- Does the system allow self-managed access control, or will you need a developer for every permission change?
- What level is the data access control at?
🔹 Infrastructure & Performance:
- Is the software cloud-based or on-premise?
- What are the server specifications? Can it scale effectively as your business grows?
📌 Key Advice: Always request detailed information about the technology stack, integration capabilities, security, and infrastructure before making a decision.
3. Calculating the Total Cost of Ownership (TCO)
The initial purchase price is just one part of the total cost. You must also factor in the long-term expenses associated with using the software.
Hidden Costs to Consider:
💰 Implementation Costs – How long will it take to deploy? Are there additional customization fees?
💰 Maintenance & Updates – Are software updates included, or will they require extra payments?
💰 Training & User Onboarding – Will your team need extensive training? Is support readily available?
💰 Operational Costs – Does the software require high server costs or additional infrastructure investments?
💰 Scalability Costs – Can the solution grow with your business without significant extra expenses?
📌 Key Advice: A solution that appears expensive upfront but offers strong support and scalability may actually be more cost-effective in the long run.
💡 Conclusion:
✅ When purchasing software, don’t focus solely on the price—look at the overall value it provides.
✅ Consider who you’re working with, the technology behind the product, and the long-term costs before making a decision.
✅ A more expensive but well-supported, scalable, and secure solution could save your business significant operational costs in the future.
🚀 Make a smart investment so that your software becomes a growth engine for your business, not a financial burden!