- Two ERP proposals are only comparable if they cover the same scope, responsibilities, and assumptions.
- Evaluate the ERP solution and the integrator responsible for delivering it separately.
- Standardize exclusions, internal effort, data, integrations, and total cost over a common period before comparing prices.
- Add evidence, gaps, and risks to your selection matrix so that a sales claim is not scored as a demonstrated capability.
Two ERP proposals can show very different prices without covering the same project. Before comparing the amounts, bring each offer to a common baseline: scope, assumptions, exclusions, team, responsibilities, data, integrations, total cost, and risks.
A $480,000 proposal might seem more advantageous than a $650,000 one. But if the first excludes data migration, several integrations, training, and stabilization, the two figures are not measuring the same thing.
In short: how do you compare two ERP proposals?
Compare at least ten dimensions: the included scope, covered functionalities, assumptions, exclusions, team, client responsibilities, data and integrations, total cost, commercial terms, and remaining open risks.
The price on the first page should never be your main criterion. The first step is to make the offers comparable.
1. Verify that the vendors are addressing the same scope
For each proposal, identify the companies, sites, users, processes, modules, environments, integrations, data work, reports, training, and post-go-live support.
An offer that covers finance, procurement, sales, inventory, production, data, interfaces, and training is not equivalent to an offer that only covers finance, procurement, sales, and inventory. Normalize the scope first, then compare the amounts.
2. Separate the ERP solution from the integrator
A good solution with a poorly suited integrator remains a project risk. Evaluate the software’s functional fit, architecture, security, and integrations separately from the integrator’s industry experience, seniority, methodology, availability, and references.
Avoid a single overall score that mixes software, team, and risk. To formalize this logic, use the PlanAxion ERP selection grid.
3. Compare the assumptions used to build the price
Assumptions are often where a significant portion of the risk is hidden. Look for phrasing like "the client will provide," "subject to," "based on," or "the proposal assumes that."
Example: a vendor estimates 200 hours for migration but assumes the data will already be cleaned and ready to import. If this assumption is wrong, the cost and timeline change.
For every major assumption, ask a simple question: what happens if it’s wrong?
4. Make an explicit list of exclusions
Specifically note data cleaning, history, interfaces, EDI, custom reports, testing, change management, training, documentation, support, custom development, and knowledge transfer.
An exclusion isn't necessarily bad. It just needs to be visible and costed before the decision is made.
5. Look at who will actually be working on your project
Ask which individuals are assigned to the mandate. For each critical role, document their name, seniority, ERP experience, industry experience, availability, and location.
Also ask if these resources are contractually guaranteed. The team present during the sales process is not automatically the one that will carry out the implementation.
Our article on the role of an independent ERP consultant explains why the integrator and the client-side advisor do not have the same responsibilities.
6. Quantify the effort required from your team
A lower vendor price may simply shift more work onto your organization. Ask how much effort is expected from the internal project manager, IT, finance, operations, process owners, and superusers.
Simplified example: Vendor A plans for 2,800 vendor hours and 1,500 client hours; Vendor B plans for 2,100 vendor hours and 3,000 client hours. The second one bills fewer hours, but your organization must absorb 1,500 more.
7. Compare integrations and data line by line
Do not settle for "migration included" or "integrations included." Ask how many, which ones, using what method, and to what extent.
For data, verify customers, suppliers, products, bills of materials, inventory, open orders, journal entries, and history. For integrations, check specifically for CRM, EDI, e-commerce, WMS, MES, payroll, banking, BI, and internal applications.
One proposal might include "data migration" while only providing for a master file. Another might include several years of history. The wording is similar, but the effort is not.
8. Calculate the total cost over a common period
Use a common horizon, such as five years. Include subscriptions, modules, environments, implementation, development, migration, integrations, testing, training, internal effort, support, enhancements, and recurring costs.
To build your own model, consult our guide on the cost of an ERP implementation in Quebec.
A cheaper proposal is only advantageous if it truly covers the same project.
9. Identify the remaining unknowns
Create a To be confirmed category and list everything that could still change the cost, timeline, or choice of solution. Classify each unknown by its risk level: low, medium, or high.
A useful rule: no vendor should move to final negotiations with a critical item still classified as "to be confirmed."
10. Compare commercial and contractual terms
Compare payment terms, indexation, renewal, commitment duration, license increases, future hourly rates, travel expenses, ownership of developments, termination, service levels, and conditions related to scope changes.
A significant first-year discount may become less attractive if the contract leads to sharp cost increases in subsequent years.
What framework should you use to compare ERP proposals?
A useful framework combines several weighted dimensions: functional fit, architecture, data, integrator, implementation methodology, project risk, total cost, commercial terms, and adoption.
Most importantly, add three columns that comparisons often overlook: proof, gap, and risk. A high score supported only by a sales claim should not be treated as a truly demonstrated capability.
Example: the cheapest proposal may end up costing more
Illustrative example: Vendor A quotes $525,000 and includes migration, ten interfaces, training, a test environment, and 90 days of support. Vendor B quotes $430,000, but excludes data cleansing, six interfaces, training, and post-go-live support.
If those excluded items end up costing $145,000, Project B reaches $575,000 before even accounting for risk or additional internal effort. These figures are for illustrative purposes only and do not represent market pricing.
12 questions to ask before choosing
- Did the vendors respond based on the same scope?
- Are all necessary modules included?
- Are the assumptions explicit?
- Are the exclusions known?
- Are all integrations priced out?
- Does the migration cover all necessary data?
- Is the proposed team identified?
- Are internal resources estimated?
- Is the total cost calculated over the same period?
- Are the commercial terms comparable?
- Are unconfirmed items documented?
- Do significant gaps have proof or a resolution plan?
If you cannot answer these questions, the proposals are likely not yet comparable enough to make a decision.
An ERP proposal should lead to a defensible decision
The goal of the analysis is not to produce a spreadsheet that automatically makes the choice for you. It should allow management to understand why one solution is more expensive, where the trade-offs lie, what risks remain, which assumptions influence the budget, which team will carry out the project, and what still needs to be negotiated.
PlanAxion structures ERP requests for proposals so that vendors respond using the same criteria, scenarios, and a common format. This allows for separate comparisons of the solution, the integrator, the total cost, and the risk.
Frequently asked questions
How do you compare the prices of two ERPs?
First, verify that the proposals cover the same scope. Then, compare the total cost over a common period, including licenses, services, integrations, migration, extensions, support, and internal resources.
Why do ERP proposal prices vary so much?
Vendors may use different assumptions, modules, and scopes. A cheaper offer may also exclude work that will be billed later.
Should you choose the cheapest ERP proposal?
Price must be evaluated alongside scope, risk, the quality of the integrator, software capabilities, and total cost.
How do you compare two integrators for the same ERP?
Compare the assigned team, industry experience, seniority, methodology, client responsibilities, references, and commercial terms.
What exclusions should you check for?
Pay close attention to data migration, integrations, reporting, testing, training, change management, support, and custom development.
Should the ERP and the integrator be compared separately?
Yes. The quality of the software and the capability of the implementation team represent two different risks and should be evaluated separately.
Primary source: PlanAxion’s ERP selection method, based on standardizing scope, assumptions, exclusions, total cost, and the separate evaluation of the solution and the integrator. See also ERP Request for Proposals, ERP Selection Matrix and Independent ERP Selection.
