Why ERP prices vary so much
Search for ERP pricing in India and you’ll find numbers that don’t agree. That’s partly because “ERP” covers everything from a single order tracker to a company-wide platform with dozens of modules. It’s also because many quotes include features a small business will never open.
I build ERP for small and mid-size businesses, usually one module at a time, connected to the accounting software they already run. That’s why my range starts lower than the enterprise figures you’ll see elsewhere. You aren’t paying for a finance module you already have in Tally.
Custom ERP price levels and what each includes
These levels describe scope rather than separate price lists. Your own quote is based on your process, and it’s fixed before work starts.
| Where it sits | What’s included | A typical example |
|---|---|---|
| Lower end | One module, a few roles, a sync with your accounting software | Order tracking from enquiry to dispatch |
| Middle of the range | Two or three linked modules, role-based screens, standard reports | Orders, stock and dispatch on shared data |
| Upper end, to ₹10 lakh | Most of the operation in one system, with many roles, compliance reports and an owner dashboard | Orders, stock, dispatch, collections and GST screens |
Every level includes a written scope, weekly demos on your own data, training at launch and full ownership of the code.
What drives custom ERP development cost
- Number of modules. This is the biggest factor. Orders, inventory, dispatch, collections and compliance are each real pieces of work, which is why starting with one keeps the first bill small.
- Number of roles. Sales, accounts, dispatch and the owner see different screens, and sensitive figures need to stay with senior staff. My steel trading system has nine role-based views. A small team may need two.
- How unusual your process is. The logic is where the effort goes. Selling steel by weight, tracking coils, or working out dues from construction progress all take more thought than a plain order form.
- Accounting integration. A one-way sync from Tally is simpler than two-way posting. The Tally integration page explains the methods.
- Data migration. Clean masters are quick to bring in. Years of messy Excel files need checking and cleaning first, and that takes time.
- Compliance reports. GST, TDS and RERA reports need to be exact, so they need careful building and testing against real filings.
- Hardware and sites. Weighbridges, multiple branches, and yards with weak networks each add work.
Custom ERP vs off-the-shelf ERP
Off-the-shelf ERP is a good choice when your process is close to standard and you’re happy to adapt to the software. Custom makes sense when your process is part of your advantage, or when generic software has already failed you.
| Off-the-shelf ERP | Custom ERP | |
|---|---|---|
| Pricing | Licences or subscriptions, often per user | One fixed project price |
| Fit | You change your process to suit it | Built around your process |
| Start | Often many modules at once | One module, then grow |
| Unused features | Plenty | None, because you only build what you need |
| Tally | May replace it, or need an add-on | Works alongside it |
| Ownership | The vendor’s product | Yours, including code and data |
| Upgrades | Done by the vendor | Done by whoever supports it, on your schedule |
Be honest about the downside too. With custom software, you’re responsible for keeping it maintained, either through a support plan or with your own developer. Because you own the code, you have that choice.
Running costs after launch
A custom ERP has no per-user licence, but it isn’t free to run. Budget for hosting, any WhatsApp or AI usage it relies on, and support. Support is available on a simple monthly plan or on request, so you can match it to how often your needs change.
New modules are priced as new work, with their own scope and quote. That’s usually how an ERP grows: a business adds collections once order tracking has proved itself, for example.
A real example of scope
For a Mumbai steel trading company, I built OpsHub. It follows each order through ten stages from enquiry to gate pass, tracks coil-by-coil stock, logs weighbridge weights, allocates receipts across invoices with 194Q TDS, and gives nine roles their own views. GSTR-1, 2B, 3B and 26AS reconciliation screens and a CEO dashboard sit on top.
That’s the kind of scope that sits towards the upper end. A trader who only needs order tracking and a Tally sync has a far smaller project. The real estate collections system is a different shape again: it reads from Tally and works out dues per flat, without touching how the accounts team works.
How to keep ERP cost under control
- Start with the module that hurts most. Order tracking or collections are the common first steps. Prove it, then add the next.
- Keep Tally for accounting. Rebuilding what already works is the fastest way to double a budget.
- Clean your masters early. Tidy customer, item and ledger names before migration. It saves real time.
- List your exceptions. Part-payments, returns, job work and credit notes all belong in the scope from day one.
- Name one decision-maker. Weekly demos only work when someone can say yes or no in the room.
Getting your own estimate
Start with a free 30-minute audit call. You walk me through how an order moves through your business, and I tell you what I’d build first, what I wouldn’t build at all, and whether a ready-made product would serve you better. Then you get a fixed scope, timeline and quote before any work starts.
You can read more about the approach on the custom ERP development page, or see how it applies to manufacturers and traders. For smaller projects, the business automation cost guide may be a better fit.
Frequently asked questions
A custom module for a small business starts near the lower end of my ₹50,000 to ₹10 lakh range, usually one module with a sync to your accounting software. The final figure depends on roles, integrations and data migration, and it’s fixed in a written quote after the audit call.
At the start, usually not, unless you only need one module. Over time it can be, because there are no per-user licences and you only build what you use. The better question is fit: if off-the-shelf covers your process, buy it and save the effort.
It depends on the number of modules and how unusual your process is. You get a written timeline with the fixed quote after the audit call. Starting with one module means your team is using something real sooner, and you see working software every week.
You choose. I offer support on a simple monthly plan or on request, and because you own the code and the deployment, another developer can take it over if you ever prefer that. There’s no licence you have to keep paying for the system to run.
No, and it would usually cost you more. The ERP handles orders, stock, dispatch and collections, while Tally stays with your accountants. The two sync, so vouchers aren’t typed twice. Keeping Tally also means less training and fewer changes for your accounts team.
Related service: ERP & Operations Systems