How much does an Odoo implementation cost for an SME?
The question "How much does an Odoo implementation cost for an SME?" is on the minds of many entrepreneurs, much like buying a car or a house. The costs can vary greatly depending on your needs, desires, and the options you choose. The average price for an Odoo implementation ranges from €5,000 to €15,000 per company with up to 50 Odoo users. In this article, I will do my best to explain what is involved in an Odoo implementation.
As an example, let's consider buying a new car. A Volkswagen ID.3 starts at €42,690 for a Pro model. This can quickly exceed €50,000 if the buyer opts for a more extensive package with leather upholstery, sports edition, different rims, special paint, adaptive cruise control, lane-assist, park-assist, etc.
If we consider that most Dutch people sell or trade in their car within five years, why do so many people still opt for all those upgrades?
The answer is simple: because most people want to get what they want immediately, so they don't regret it later.
In addition, most Dutch people spend 30 minutes or more per day driving in their car. They want sufficient range with the necessary comfort, quality, and user-friendliness.
The same principle applies to most businesses when they want to implement a new Odoo system.
This solution is used every day. It's crucial to choose the right implementation right away, with the correct options, modules, and processes to ensure maximum user-friendliness and workplace satisfaction with minimal maintenance.
That's why most entrepreneurs choose to outsource the implementation to companies like WeSolved.
Did you know that companies typically work with the same software package for an average of 7 to 10 years? They often update to new versions regularly but don't switch to a different package easily. It's important to keep this in mind because switching is like changing your bank or accountant. It's not something you do casually... It involves stressful and significant changes for a company.
Unfortunately, some entrepreneurs only focus on the upfront and monthly costs of an IT system like Odoo. Their goal is to find the cheapest provider, sacrificing user-friendliness, quality, availability, and security, which inevitably leads to regret. Often, there turns out to be a lack of alignment between the parties. We frequently hear that people appreciate that we are simply (available by phone) and they can ask their questions.
Given the fact that unlike a car, an ERP system cannot be traded in if someone is dissatisfied or disappointed. Switching to another solution is also not easy and comes with costs and frustrations, not to mention stress for the users. We simply don't like change that much. Lately, we've been seeing more existing Odoo users switching to another Odoo partner who honestly indicates the best solution. "No" is also an answer that can prevent disappointment. We look for the overlap between your business processes and the processes within Odoo with as little customization as possible.
Here is a list of the most common modules and apps
used in an Odoo implementation:
- Sales: This module helps manage sales orders, quotations, price lists, and customer information.
- Purchase: This module allows you to manage purchase orders, suppliers, and supplier prices.
- Inventory: This module is essential for managing your inventory levels, locations, and movements.
- Accounting: For financial transactions, ledger management, and generating financial reports.
- Human Resources Management: This module allows you to manage employee records, payroll, and recruitment processes.
- Customer Relationship Management: For managing customer information, leads, opportunities, and communications.
- Website Builder: Useful for creating and managing websites and web pages.
- E-commerce: This module is ideal for setting up an online store and managing e-commerce activities.
- Project Management: For planning, tracking, and managing projects and tasks.
- Helpdesk: This module allows you to track and manage customer service requests.
- Manufacturing: This module is for managing production processes, work orders, and the manufacturing of goods.
- Invoicing: Handy for generating invoices and managing customer payments.
- Marketing Automation: For automating marketing campaigns and managing leads.
- POS: Ideal for managing stores and sales points.
- Discuss: A module for internal communication and collaboration within the organization.
Click here for an indication of the costs per module mentioned above.
We would like to understand the challenges you are facing right now, grasp the processes within your company, so that we can offer a solution that resolves your "issue" or challenge.
Additionally, Odoo offers much more functionality, allowing you to consolidate multiple systems into one package.
Training
Over the years, we have learned that the success of an Odoo implementation depends heavily on training the users. This has led us to the decision not to skimp on this aspect anymore. Yes, it costs money and yes, it takes time from employees... but the factor of success is so much greater that this has become a no-brainer for us.
What does an Odoo implementation cost for an SME?
The average price for an Odoo implementation ranges from € 5,000 to € 15,000 per company.
Factors influencing the costs of Odoo implementation
When someone asks us about the cost of implementation, it's important to mention what installation, migration, and ongoing support entail. These costs vary based on the size and complexity of your business, and depend on the number of modules you wish to implement.
Thus, larger companies often have more users and complex processes, which can lead to higher implementation costs.
This usually boils down to the following three options:
- We schedule a meeting where we conduct an interview lasting approximately one hour to estimate
the implementation costs. - Companies with up to 15 employees often have less complex processes. During an intake, we deliberately ask open-ended questions to prompt them to consider how they currently handle certain tasks. We then estimate the required hours to configure these within the Odoo processes.
- Companies with 25+ employees often understand that they may not immediately know what they want and where they will end up. In these cases, implementation typically proceeds based on post-calculation.
This is how we arrive at an implementation price.
It's also possible to agree on a fixed fee so that you know exactly what to expect and avoid any financial surprises.
Partnership
This year, we've encountered several specific industries that required custom solutions. In collaboration with the client, we shared the costs so that WeSolved could introduce a tailored solution for that industry. The win-win here is that the client doesn't bear the full 100% of development costs, and the software continues to evolve for that industry. This way, we both benefit and improve together.
Migration
Additionally, the need to migrate existing systems and data to Odoo can also increase costs. This is especially true if your company currently uses multiple standalone systems that need to be integrated into Odoo.
Size of the company
The size of your company is a key factor that can influence the costs of an Odoo implementation. Larger companies typically have more users and complex processes, which can lead to higher implementation costs. The number of users needing access to the system and the complexity of the business processes are both factors that can increase costs.
Appointments
We also often see that clients insist on incorporating their own processes into Odoo. This is understandable. However, without clear stakeholders on the client side and decisive project management, these projects often become endless endeavors that benefit no one. Making clear agreements in advance about this can increase success, shorten implementation time, prevent frustration, and save a lot of money.
Now you might be thinking, "But Robin... what are the costs per module, app, or process?"
You can expect an average cost of € 2,000 to € 10,000 per module (business process).
Setting up a CRM process in Odoo typically costs around € 2,000 on average.
Another example: setting up a production process in Odoo averages around € 10,000. By configuring your production process in Odoo, you have a maintainable process that is fully tailored to your needs and is also robust and future-proof.
A customized example: for a bespoke module that includes multiple business processes and integrates with third-party tools, costs range between € 5,000 to € 50,000, with an average duration of 1-4 months.
Specific modules
The mentioned modules can be implemented based on the needs of your business. Each module has its own costs, and the number of modules you choose to implement can significantly influence the total implementation costs. On average, basic functionality modules cost around € 1,000 to € 2,000 each. The website module is an exception because it also involves developing a template for the look and feel. If you also want an e-commerce shop and a customer portal, costs can quickly escalate, ranging from € 5,000 to € 15,000.
Additionally, some modules may require extra configuration or customization, which can further increase costs. It is important to have a clear understanding of which modules your company needs and how they should be configured to avoid unnecessary expenses. We address this during the intake process.
Hosting and licensing costs
In addition to the one-time implementation costs, you will also have licensing fees.
With this calculator, you can quickly estimate the monthly costs for Odoo licenses and hosting.
Frequently Asked Questions
How soon can you start and what is the timeline? The timeline greatly depends on the scope. We prefer to start within a month after the assignment, as everyone is still positive and full of energy. If a project takes longer, we notice that engagement tends to decline.
Yes, we believe it is important for you to have someone by your side who has a broad overview of the entire project. If that person isn't a good fit, please let us know so we can arrange for you to work with someone else from our team.
We use standard Odoo processes wherever possible to avoid unnecessary costs when upgrading in the future.
A support contract is needed to address your queries within an agreed timeframe. A maintenance contract ensures that your Odoo environment stays up-to-date. Often, these are offered together as a combined package.
As an indication, a maintenance contract costs €450 per month for up to 10,000 lines of custom code. For amounts exceeding this, separate arrangements will be made.
As a guideline, a support contract during office hours with a response time of half an hour costs €250 per month. For a 24/7 agreement with a half-hour response time, the cost is €500 per month.
Additionally, you will pay for the hours worked with any applicable surcharges outside of office hours. For other support inquiries, you will also receive a reduced rate. With the calculator above, you can easily calculate the costs for your company.
Conclusion
The costs of an Odoo implementation for an SME, as you’ve read above, can vary significantly. This depends on various factors. However, it is possible to manage and minimize these costs through careful planning, selecting the right modules, and effectively managing the implementation process.
With the right approach and support, we ensure that Odoo is a valuable investment for your company, helping you streamline processes, increase efficiency, and grow your business, while also saving you at least 30%.
The best part of our work is that we can share the knowledge and experience we’ve gained with other entrepreneurs. This way, we help each other without sharing any client-specific information.
Can we assist you with anything? Book a completely non-binding introductory meeting here to explore if we might be a good fit for each other.