News Blog Posted on: 05.04.16
Everything you want to know about the cost of PIM but are too shy to ask
The total cost of PIM depends on a few equally important factors. Let’s take a closer look at them.
Most of all, there are three basic elements that contribute to the total cost of PIM software implementation. They include:
1. The license – software the business decides to select and how they want to use it. The more modules are required, the higher the total price. It will be lower for a company that only utilizes one channel in one language. As the complexity of a channel network increases, so does the cost. The choice of license may also have an impact on the overall project scope.
Some PIM providers offer both corporate and free versions of their software. Free versions usually have limited features and do not include a high level of technical support.
3. The implementation – cost of the software implementation. A regular PIM project is executed in three phases: the concept phase, the build/configuration phase and the implementation phase.
Except for the ones already listed, there are also other factors affecting the cost of PIM. These factors often tend to be overlooked by companies. They are directly related to company operations and characteristics and include:
1. The diversity of the assortment and channels – the implementation alone is not affected by the number of SKUs but by diversity of the assortment and how complex the product attributes model is. Large number of sales channels has an impact on the project schedule. All the channels need to be configured in order to work with the system. For example, the data will have to be mapped to meet the website’s requirements. In other words, it needs to be made usable for every channel. This step guarantees that all attributes required by the channels can be found within a PIM system. A company also has to make sure that the attributes in one system match attributes in other places – in other words, that their format is right.
2. Company size – bigger companies must be prepared to incur higher costs. It is directly linked to the number of workshops and training sessions that need to be run (depending on the number of employees).
3. Data quality and completeness within the company compared to the outcome it wants to achieve. If the business needs to enrich a lot of data, it will have to pay people to do it (internal costs). The cost increases with the amount of data that needs to be enriched.
4. Customization – the higher level of customization is required, the higher the cost will be.
The time needed to implement a PIM system is a sum of all the above mentioned elements. In general, it varies from 30 days for less complex implementations to 100+ for really complex projects in larger organizations.
It is hard to provide a pricing range for a PIM system implementation as there are too many factors contributing to it. Therefore, it will vary from one company to another. A recommended approach is to simply hire a consultant who will determine the business needs and come up with an accurate price or contact a PIM vendor.
If you want to receive a professional and personalized cost estimation, do not hesitate to contact us. We’re here to help you!