If you’ve begun any research into the different landscape business management software programs out there, then you probably already know just how differently they can be priced. Not only does the overall cost vary, but also the pricing structure. Regardless of what landscape business management software you go with, you can expect that it’s going to be a big investment, making it all the more important that you choose wisely.

We have said, speaking in general terms, that you can expect landscape business software costs to be approximately the same as what it might cost you to hire an entry-level administrative assistant (minus the medical insurance, 401K, vacation and sick days). It’s also comparable to the amount it would cost you to buy a new pick-up truck for the company. But the benefit is that it will give you a tremendous return on investment for that cost. It will streamline operations and ultimately make you more profitable—that is, assuming you choose the right product for your business.

While you probably already recognize the value in adding landscape business management software to your business (hence why you’re looking into it), it’s still important to know that costs really can run the gamut and one software company might price their product much differently than another. Understanding those differences will go a long way in helping you to determine the right software for your business.

In order to help you better understand landscaping business software costs, we’ll explore 5 important points that you should consider as you research software. Understanding these points will help guide you toward the decision that is right for you.

1. Some Software is Priced According to Your Revenue

One of the models that are used by landscaping software companies is a revenue-based pricing structure. This means that you are billed for the software based on a percentage of your total revenue. If your revenue changes, so do your software costs.

For example, say that you are a $1 million company and you’ve selected a software company that charges 4 percent of your total sales. Your landscaping business software costs will be $40,000 per year—and that’s before any set-up costs are added in. For the first year, you could be looking at $70,000 to $90,000 for software, plus the additional $40,000 per year going forward (until you earn more revenue, which is obviously the goal, and then your software cost rises).

2. Some Software is Priced as a “Service”

An increasingly popular way that software is priced by companies is called “Software as a Service,” or the SaaS model as it's known within the software industry. The SaaS model means that you are paying for the software per month, per user. You don’t own the software, but you do own the right to use it. SaaS has also been called on-demand software or “hosted” software. All of these mean the same thing.

With SaaS, instead of installing and maintaining the software, your company just has access to it “as a service.” A lot of companies see that as a benefit as you don’t have to be involved in upgrades or changes but all of that is handled on the software company’s end. You just pay to use it.  

3. Some Software is Sold as a Perpetual License

Under this model, you purchase the license and then you actually own the software, as long as you have the license. Purchasing concurrent software licenses gives you both ownership and access to the data you put into the software. That’s important, because landscape business management software sold under some of the other models may mean that you don’t own your own data. The software company that maintains the servers not only has access to your data but technically also owns it. That’s a point that makes some landscape companies uncomfortable once they understand it. You probably don’t want a third party to have access to your customers’ data or even to your employees’ information.

4. Most Landscape Business Management Software Has Additional Fees

No matter what product you choose, you can expect that a purchase of landscape business management software will have associated set-up fees making the upfront cost more expensive than subsequent monthly or yearly payments. Many products also require ongoing maintenance fees. Though the exact fees can differ from company to company, expect that there will be some additional fees that must be incorporated into your overall cost.

When looking at landscaping business software costs, it’s important to get a clear understanding of what all of the fees associated with your purchase will be as well as what they will include. These ongoing fees may include services like technical support, upgrades, and enhancements as the software product evolves.

5. You Must Evaluate Value vs. Cost

When shopping for landscape business management software, it’s important not to just shop on price alone. That’s because comparing various software products is not like comparing apples to apples—there are simply too many differences. What you really want to evaluate is what you’re getting for your investment. Aim to find a product that is going to give you a lot of value for your company’s specific needs.

Evaluating value is part of the overall research process of selecting a product. We know that researching solutions can feel like an overwhelming task, but we’ve given you a head start in evaluating some of the popular landscaping business software options on the market. This blog will help give you a start in understanding some of the key differences between the products out there.

How Include Software Structures Pricing

At Include Software, we use a combination of the SaaS model as well as perpetual licensing for our software products in order to give our clients the best of both worlds. We want our clients to get the most value out of their investment and price our products in a way that makes the most sense for what they’re receiving.

For Asset, we charge via perpetual licensing. Our clients make a one-time purchase of the software that includes concurrent licensing—and then they own it. It is based upon how many people are using the software at the same time.

While we know that you might have 20 managers at your company, the number is based on how many simultaneous users you have utilizing Asset. We also charge an annual maintenance fee that is roughly 10 to 12 percent of the software cost for the second year which includes benefits such as technical support, new version upgrades, enhancements, new reports, and all the payroll taxes required for the software.

For iCREWtek, a mobile app companion add-on that allows crews to connect with the office instantaneously and also offers benefits like tracking, service records, and scheduling, we charge using the SaaS model.

We also price similarly for Asset Client Portal, the add-on that brings an integrated client account management portal to your website. One of the biggest benefits of SaaS is that you avoid depreciation. In general, software can be depreciated over a five year period of time. But when you’re purchasing on a subscription base, you avoid that.

In terms of how Include Software’s products stack up against the competition, we believe that you’re not only getting a good value with our industry-specific products that will help grow your business and make it run more efficiently. But we also believe that you’re also getting a good price. It’s a win-win scenario.

At Include Software, we also believe you don’t have to be a huge company in order to afford software. We want to help take smaller companies to the next level with the software tools they need to get there. Smaller companies can start off with the basics with us and then build from there by adding features as they go.

A Software Cost Comparison

Let’s do a landscape business software cost comparison. As mentioned as a previous example, we are aware that one of our competitor’s charges via a revenue-based model. They would charge a $1 million company 4% of their total sales (gross, not net) so $40,000 per year. When you add in their setup fees as well as the ongoing $40,000 per year they’ll charge going forward, the cost can exceed $250,000 for 5 years.

At Include Software, the approximate cost for a $1 million company to operate our software for 5 years is $46,000. It’s both a good value and a good price.

How Do Landscaping Business Software Costs Fit Into Your Future

As you evaluate software products and their subsequent costs, we would also suggest that you look at your strategic goals in the company. Where do you want to be in 5 years and how will the software you’re considering help you get there? You must also consider how the pricing model for that software will affect your business in 5 years. If it’s a revenue-based model and you hope to increase your revenue, are you prepared to pay that rising cost? Consider not only how the software cost fits into your current business plan, but also how it fits into your future.

It’s obviously a lot to consider and we know you probably have questions. At Include Software we believe in being transparent. There are no hidden costs or secrets about our pricing structure. We’re happy to answer any questions you may have about landscaping business software costs to help you determine whether our products are right for your business.

If you’re ready to find out more about Asset,  iCREWtek, and Asset Client Portal, contact us for a free demo or give us a call at 800-475-0311.