Written by Simon Verona

Ill jump straight in and say that this isn't an article about why out Navigator solution is cheaper / more expensive than any other system.

In fact it isn't going to mention any specific systems at all.

When dealers looks at the Dealer Management software and review the marketplace, its very difficult to compare pricing.

Firstly, its often pretty difficult to get a price (the only plug on this page for our solution is that there is a pricing article in the top menu of this page!).

But, back to the article title.. Why are some solutions more expensive than others.?

Does expensive mean better?

Sometimes.

But not always

As usual, it depends on what you want from your Dealer Management System and the supplier.

There are a few things that will explain variation in cost between various suppliers.

Feature functionality

Realistically, not all systems are equal. Some are more targeted towards vehicle sales and are less strong on Aftersales.

Some have integral accounting, others may not.

Other may have a CRM system . Again others may not.

Does any of this matter?

Well if your workshop is a simple single bay, used mainly to prep vehicles for sale then workshop is unlikely to be a strong "want" on your list of features in your new DMS.

If you've a busy retail workshop with several technicians in then this aspect will change!

Similarly, with some systems to gain some functionality, you'll need to buy additional software from other suppliers - so for example some systems without accounting packages of their own will need you to buy a third party accounts package. This adds to your cost

What software is included in the price?

Expanding on the previouslpoint, many system are available as a core solution and a number of add ons.

This makes sense, there is no point paying for features you don't need..

But when comparing systems it may be that one has more items bundled into the standard pricing than others..

So, you need to make sure you're not comparing oranges with apples. Make sure you've costed any add ons you believe you'll need before you compare.

Services

What sort of services does your supplier offer.

Some will for example provide you with a Project Manager, and maybe an on-site implementation team. Others may just give you the software, an online guide, some video training and key you get on with it.

The price will reflect this!

And you'll see the same in post implementation customer service. Some suppliers will provide basic email only helpdesk with maybe 24 hour turn around. Others will have the ability for you to ring them and speak instantly to a real human!

The quality of support backup could be different as well... Some will provide active account management - helping you to ensure you're making the best use of their solution all the time. Others will just use account management to upsell!

Upgrades

The way different suppliers supply upgrades will be reflected in their pricing.

Some will supply you with software when you buy it and it will never be upgraded, meaning you will need to pay an upgrade fee for a new version.

Others will provide updates within a version but require you to pay to upgrade to major releases.. Ie 7.3 to 7.4 might be free but 7.4 to 8.0 might then be chargeable.

Check the Lifetime Pricing

You're hopefully going to stay with a DMS supplier for several years.

The average change cycle in the industry is somewhere around 7 years or so.

Most suppliers will provide a contract for 1,3 or 5 years.

But what happens then?

Again, it differs.

Some will continue with the same contractual terms and pricing forever.

Others will offer you a new contract, at their current pricing - maybe with a discount for being an existing client. However, the chances are this may mean a significant price hike, often under distress as you may not have the time to review the marketplace, choose, install and be live on a new system before your contract requires renewal..

And, when the renewal is 5 years that can end up expensive!

Check also the price increase policy in the contract (its not going to be on the quotation in many cases). Ideally it is reasonable to be tied to inflation but they aren't always!

And finally

Remember that price is only part of the solution! It's much more important to get software with the features you need, and sign up with a company that you feel you can work with - you will likely be working with them for several years.

Don't pay for more than you need, but equally don't skimp - a good Dealer Management System which fits your requirements will always more than pay for itself.

Hope this article helps you to compare solutions in the marketplace when you are looking for a new system.

If you want to know more about Navigator, just click the button below!