2 MIN READ
Choosing procurement software can feel overwhelming, especially when prices range from bargain-basement to premium. The truth is, procurement software should match your organization’s size, goals, and vendor needs—without breaking the bank. This guide walks you through the factors affecting cost and how to make the right choice for your budget.
01
Understand What’s Included in the Price
Procurement software comes with a wide range of features. The key is knowing which ones you need—and which ones you don’t.
Most procurement platforms include essential tools like bid management, vendor management, and contract tracking. Higher-tier options may offer extras like real-time analytics, custom integrations, or multi-language support. Decide which features are critical to your business before comparing prices. This way, you’ll avoid paying for unnecessary features and know exactly what you're getting for your money.
02
Compare Pricing Models: One-Time, Subscription, or Pay-Per-User
Procurement software is typically priced in three ways:
- One-time purchase for perpetual licensing
- Subscription-based (monthly or annual fees)
- Pay-per-user pricing based on the number of users or vendors you manage
For small organizations, a one-time purchase may be the best value. But for larger teams, subscription or pay-per-user models often allow for scalability and better vendor management over time. You’ll want to choose a pricing model that aligns with your budget and operational needs.
03
Factor in Implementation Costs
The upfront cost isn’t just the software itself—implementation fees, training, and support may not be included in the base price.
Ask vendors about setup and training costs. Some procurement platforms offer DIY setup with minimal support, while others provide full onboarding and training services for an additional fee. Do this and you’ll get a clear picture of the total cost to get the software up and running.
04
Look for Long-Term Value: Scalability and Future-Proofing
Your procurement needs today won’t be the same in five years. You need software that grows with your organization. Ask vendors about the ability to add modules or features as your needs change. Look for platforms that offer flexibility and updates, so you don’t end up stuck with outdated software in a few years. This way, you’ll invest in a platform that supports your organization’s long-term growth.
Want a clearer view of how to budget for your entire procurement process? Read our guide on how companies budget for procurement for detailed steps.
05
Avoid Hidden Fees: Maintenance, Upgrades, and Support
Nobody likes surprise fees, but some software vendors sneak in costs for maintenance, upgrades, or support.
Always ask upfront about ongoing costs. Does the vendor charge for new software updates or support beyond the first year? Get all these details in writing before signing a contract. Be sure to avoid budget-busting hidden fees and ensure your ongoing costs are transparent.
06
Assess ROI: Are You Getting Your Money’s Worth?
It’s not just about cost—it’s about value. Your procurement software should save you time, streamline your processes, and improve vendor relationships.
Calculate how much time and money your current system wastes due to inefficiencies (manual bidding, lost paperwork, vendor miscommunication). Use these numbers to justify the software investment and estimate your return on investment (ROI).
So, How Much Should You Pay?
On average, procurement software for small to mid-sized organizations can range from $5,000 to $50,000 annually, depending on features and user count. Large enterprises can expect to pay significantly more for robust, customized platforms.
By following these steps, you’ll know exactly what to expect when budgeting for procurement software, and you’ll be ready to make an informed decision!
Ready to find out how much PlanetBids can help you save? Check out our pricing plans and see which solution works for you.