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Cost Comparison |
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Lets have some fun with math. We will run the hypothetical numbers for a 3-user Inventory Management solution, with 2 Handheld Mobile Computers and 1 Thermal Barcode Printer.  Velocity Inventory On-Demand | | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | | Initial Investment | 0 | 0 | 0 | 0 | 0 | | Monthly Subscription – 3 users at $39.95/month | 1,438 | 1,438 | 1,438 | 1,438 | 1,438 | | Maintenance and Support Contract per/year | 0 | 0 | 0 | 0 | 0 | | Technical support – Unlimited Use | 0 | 0 | 0 | 0 | 0 | | Mobile Barcode Scanning Module – Included with Subscription | 0 | 0 | 0 | 0 | 0 | | 2 Mobile Barcode Scanners w/accessories, Includes Abuse Level Hot-Swap Service - (Hot-Swap means you call us and tell us it is broken, and we overnight you a replacement scanner. You send the broken one back to us ground shipping.) $60/month each | 1440 | 1440 | 1440 | 1440 | 1440 | | Industrial Grade Thermal Transfer Barcode Printer for long-lasting barcodes includes Abuse Level Hot-Swap Service - (Hot-Swap means you call us and tell us it is broken, and we overnight you a new printer. You send the broken one back to us ground shipping.) $60/Month | 720 | 720 | 720 | 720 | 720 | | Basic Server from Dell to install your traditional inventory management system on. | Not needed | Not needed | Not needed | Not needed | Not needed | | IT Guy to install and maintain your server and install all new inventory management system downloads/patches/enhancements/bug fixes and run a weekly backup of your critical data. Contractor averaging 8 hours per month. $75/hour | Not needed | Not needed | Not needed | Not needed | Not needed | | Database Backups of all Critical Data (Nightly) | 0 | 0 | 0 | 0 | 0 | | | | | | | | | Total | 3,598 | 3,598 | 3,598 | 3,598 | 3,598 | | Five Year Total Cost | $17,990 | | **Tax – No use tax, no sales tax, no asset that you have to depreciate** | |
Traditional Up Front Purchase Model (Averaged from Competitors) | | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | | Initial Purchase of 3 user Software License | 4,300 | 0 | 0 | 0 | 0 | | Maintenance and Support Contract per/year | 0 | 1200 | 1200 | 1200 | 1200 | | Technical Support – 3 incidents included, then $75/incident. Lets say that you have 7 additional technical support incidents per year. | 525 | 525 | 525 | 525 | 525 | | Mobile Barcode Scanning Module | 1625 | 0 | 0 | 0 | 0 | | 2 Mobile Barcode Scanners w/accessories, Standard manufacturers 1 year warranty (If it breaks, I hope you don’t need a scanner for a few weeks.) | 5,700 | 0 | 0 | 0 | 0 | | Zebra 2844 Direct Thermal Barcode Printer. With Standard manufacturers 1 year warranty (If it breaks, I hope you don’t need a printer for a few weeks.) By the way, Direct Thermal labels turns black in sunlight and over time. Think of a gas station receipt left on your dashboard… | 450 | 0 | 0 | 0 | 0 | | Basic Server from Dell to install your traditional inventory management system on. | 5,000 | 0 | 0 | 0 | 0 | | IT Guy to install and maintain your server and install all Microsoft server updates and inventory management system downloads/patches/enhancements/bug fixes and run a weekly backup of your critical data. Contractor averaging 8 hours per month. $75/hour. (This could be a much larger number if you have a $70,000 IT person on salary.) | 7,200 | 7,200 | 7,200 | 7,200 | 7,200 | | | | | | | | | Total | 24,800 | 8,925 | 8,925 | 8,925 | 8,925 | Five Year Total Cost | $60,500 | ** Tax – On Servers and Software Licenses, you will have sales or use tax, and property tax, until fully depreciated.** | |
Summary:
There it is folks. There is a reason why On-Demand is one of the fastest growing segments of the software industry.
I know some of you will argue about the IT guy not being necessary. But honestly, have you ever managed a MS SQL Server? 8 hours a month might not be enough to do the maintenance and still have time for database backups. Some of you will say, “I already have an IT person on staff to do stuff like this.” Sure, and if you are like most companies, they are already quite busy keeping your current software, network, phones, website, printers, and office PC’s, up, running, and virus free.
On-Demand is truly the future of software solutions. Within five years, you will be hard pressed to find software systems that you can install on your own server. Don’t waste your time or money on traditional software systems ever again. Subscribe to Velocity Inventory On-Demand.
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Need assistance?
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