The business of ERP and Pricing it right

Actually that was not my point. others cloning and giving entry level prices is good for the community. Specially entry level providers. its a good match.

I still think Frappe is at about 70% discounted to its value in the market hands down. If anyone is bargaining for more they can try the self hosted option. Its FREE!

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What about self host support, is still available by ERPNext, if yes what is the price?
Help please…

go to ERPNext.com and there is a “custom” offer. check with them :slight_smile:

my comparison was related to business strategy & not product itself :slight_smile: I should have choosen a different industry to make the point.

for product comparison : ubuntu and linux might be more apt.

Whom are you comparing for hosting and server management services for claiming to be 70% cheaper. Please share links for some other provider to get convinced to convince others.

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Don’t you think we have a long way to become like Ubuntu or Linux community and become an indispensable business solution very soon?

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There is comatic
https://www.comatic.ch/de/preise

There is abacus and this is just “expenses” never mind a the rest of functionality

There is microsoft dynamics 365

Then there is SAP, which is the ambiguous offering. Sap HANA. Not sure if it a HA (Yes…) or a NA (No…)
If anyone understands post here. :slight_smile:

The journey has started…The movement is there.The community is there…A few things that helped Linux was an anti-incumbent sentiment against Microsoft and its licensing…and its unwillingness to cooperate with open standards. [You can see that has changed now]. Also everyone remembers BSOD.

So what will happen to Odoo or SAP from how the perception goes will have a lasting impact on ERPNext. Luckily for them they have been able to adapt a bit and catch up [microsoft was creating FUD about Linux at the same time]

That being said, the foundation is finding its feel with valuable contribution from key people.
But more needs to be done.

Which means I am going to bring up a new topic.

Membership Fees.

Watch out for my next post :slight_smile:

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@Pawan is write it might fragment core if more users move out of Frappe.

With the new price tag there will be a increase in expectation from Frappe in terms of support and correcting bugs. Adding new features as things move forward.

None of that will matter for the users discovering ERPNext for the first time. It may in fact reflect the confidence Frappe has on ERPNext.
Nonetheless, as a current user I would have liked the price increase to be more gradual.

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If the reason to move away from Frappe is price (they want it cheaper), it is highly unlikely they will have anything more than a generic install of ERPNext. Not a customized version. So the code fragmentation as a result of Frappe’s price is not a 100% valid argument.

If someone wants a heavily customized install, Frappes’ old plan would have not been the right one anyway. So the fragmentation is not a result of the pricing, just a result of the customer needs to fragment.
It was not prevented before and wont be prevented now/or in the future.

What can be done is, to bring back the fragmented features into the main branch. But like I said, it a challenge that the foundation will face because of lack of full time resources to chase it down.

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This is not true i guess. Frappe only support core implementation without much customization. For anything customized beyond the core, frappe was not hosting them. As they wanted to promote everything into the core and also better to manage hosting.

The fragmentation idea is about people who wants the plain vanilla version also moving away.

Anyway, only time will proove if this was good or bad decision. Since frappe is for profit, it’s their own business call as to what is worth their time.

Thank you for taking time to compile the list. The best part of abacus or any other system where per-user pricing is mentioned, it looks more appealing. Instead of offering $1500 for 10 users, if it was per-user, might be the impact wouldn’t be too hard for early adopters.

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I think the price increase was a good move speaking from a North American standpoint. I’m based in Canada and making the pricing more in line with industry standards definitely improves the impression of quality to a customer - especially now that ERPNext has been recognized by Gartner. I just had a talk with a consultant at BDC (largest financing resource for entrepreneurs in Canada) and he believes that $1500 is a competitive price point for a company serious about implementing an ERP. It looks like Frappe has looked at their customer base and made a clear decision about what market they want to target, which is a great strategic move. There will still be a market for the cheaper self-implementations, it’s just a different market that may not be as profitable.

I also agree that the $1500 price may be prohibitive to smaller organizations. Possibly a monthly payment option ($125 minimum) with a 1 year term may be more attractive to those customers and still align with the pricing strategy. The maintenance and setup costs wouldn’t make sense if they were to price it any lower per month.

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I offer free and early stage for startups alternatives :slight_smile: I am still experimenting my business model. check it out.

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Its starting to feel like the project will soon have a Community version and a Commercial, only the later having all the features.

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I don’t think that would be the case as the community is committed to being open source

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You can self host the same version of erpnext for free.

If you report an issue for bug or feature request, when it gets solved it’s merged into core product and all the community can benefit.

It is truly free and open source project. It will remain free.

At a smaller scale you won’t even need backup / redundancy servers, dev-ops, quick customer support.

Whenever you need all those things as an enterprise, frappe team is the best in business for cloud hosting.

Shameless plug for MN Technique :grimacing:

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I am not sure what you base that on. In fact I only run a stable version. And plan upgrades only for security reasons. Without mods to the code base. My version is the same as the one you could download from git :slight_smile:

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I said “soon” not that it was now the case.

I’m basing it on the price increase and @rmehta post.
Some of the things stand out, like the target demographics (200k to 1M biz), that a free desktop application is being built for solo entrepreneurs and startups and that they are keen to start the differentiation

The OSS version is exactly the same as the paid version, you know that right? Code is free. Hosting it and giving you support is not. The developers still need to find good lives.

Yes the business requirements are different hence the differentiation and various versions. Doesn’t mean it won’t be free or OSS.

I have 100% faith that most people will contribute back. In fact if we don’t fund the foundation better it might be a struggle to absorb it into the core

That’s a problem. Maybe a good problem to solve for.

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We are a small business based in India and we moved from Tally to Erpnext because its awesome and the pricing was very reasonable.

We paid Rs 25k for 10 users this year and now we shall have to pay Rs 90k for the same.

The new pricing may be okay with american or european customers but may not be for others.

Erpnext was earlier supposed to be an affordable alternative for small companies to other costly erp solutions in the market.

Why I got attracted to erpnext was that I felt that the cause is very noble and the goals are not solely commercial.

Erpnext should aim at being an ERP for all and not just another option to choose from the list.

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