Hidden Costs – Salesforce vs SugarCRM!
By Amer Wilson
When it comes to buying a new CRM system, smart organizations do more analysis than simply looking at the up-front costs of the software. Many software vendors downplay the actual cost of a system to quickly seal the deal. As a result of this, organizations end up paying extra charges for third party products or essential business features.
When choosing a CRM, do not just consider the list price – in fact, watch out for the hidden costs as well. As CRM software substantially impacts the performance of an organization, customers ought to know all additional costs or upcharges that might arise to deliver the required functionality or support for their business.
Pay More, Get Less
Customers of Salesforce – the largest CRM SaaS vendor in North America – often find themselves paying more to fully utilize their required system. Despite its premium priced services, Salesforce charges additional fees for business functions such as application support, application administration, offline usage, data archiving and restoration. As a result of this, hidden costs, such as migrating CRM data or building custom mobile applications, can easily amount up to $300 per application, per month for its users.
Moreover, Salesforce customers face a hidden cost to user productivity and subscription costs if important functionality such as workflow/processes, beyond a basic version of it, is required. Its pricing also includes various upcharges, such as storage-based fees and API calls, for system usage, which is often hard to determine and budget beforehand. Because of these hidden charges and other limitations, the actual cost of using Salesforce exceeds the list price – hence, leaving customers in an unpleasant situation.
A Better Option and Value
The exemplary success of Sugar makes people wonder what it is that makes this product so popular. Many users proudly believe that Sugar is the most cost-effective CRM system that is available right now in the market – which is true. It’s PurePrice™ pricing model means that the subscription fee is inclusive of deployment, maintenance, mobile access, application support and reporting. Users can easily make any number of customizations and integrations that are deemed fit for their business without any additional charges or fees.
Also, Sugar won’t alter the pricing of its product whether it’s on-demand or SaaS deployment, or even on the user’s own servers. It is priced same for all its customers irrespective of what deployment option they chose. As Sugar aims to limit the ‘hidden fees’, its operating costs often come in at less than half of Salesforce. Even if you go for a Professional Edition, Sugar has no hidden charges that might come as a surprise to you. For example, it does not force you to either add more user licenses or upgrade ALL existing users to a new, expensive edition.
Organizations that select Sugar can derive even more value from investments that it has already made in Sugar products. Sugar partners with hundreds of technology providers to offer simple yet powerful connections to leading business applications and tools. Many vendors will charge a premium to access their community boards but the diverse knowledge of SugarCRM community is available for all its users.
So, we realized that the subscription or listed price of Salesforce is just like the tip of an iceberg – you only see a small amount of it. If you’re not fully aware of what lies beneath it, you’ll be in for an unwanted surprise for sure. Because Sugar values all its customers, we are being transparent and open about the areas where hidden costs exist. Therefore, by understanding all additional costs or upcharges that might incur beforehand, organizations should make an informed and more cost-effective decision when going for a CRM.
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