Eleven rules of choosing business management software: Rule 10

Continuing with our suggested list of eleven "rules" to help guide small and medium sized companies when they evaluate potential suppliers of business management software...

Rule 10: Be cautious of hidden costs

The deployment of a new DMS solution at your dealership will include a significant investment in effort, time and money.

In addition to the charges you will pay your supplier for software licenses and the deployment itself, there are other types of costs that will influence the system’s total cost of ownership throughout its life-cycle within the dealership.

These “hidden” costs can be significant in the short and long term, and it is smart to analyze them before committing to a software supplier.

Here are the main hidden costs that you need to look at:

Hardware
Modern systems are Microsoft Windows®-based and thus work with standard, off-the-shelf hardware that you can buy at any computer shop.

This includes user PCs, servers and printers.

Some suppliers require their customers to purchase proprietary hardware, which is sometimes leased by the supplier themselves. This type of equipment is more expensive than off-the-shelf hardware.

Training
A software system developed for the Windows platform offers a simple and user-friendly interface, one that users are already familiar with.

This not only makes training simpler, but also means a faster learning curve for new employees. In today’s world any new employee you hire will most likely already know how to use Windows.

Extra charges for using the system
Some suppliers charge extra fees the more you use the system, such as transaction or printing charges. Be sure to ask your supplier about this.

Posts in this series:

• Rule 1: Make sure the new system can accompany your company’s growth

• Rule 2: Does the system stay up-to-date regarding fiscal compliance?

• Rule 3: Attend a demo

• Rule 4: The system should be flexible

• Rule 5: Training is essential

• Rule 6: Choose a supplier that provides more than just a system

• Rule 7: Ask how technical support is handled

• Rule 8: Be wary if the system is too simple

• Rule 9: Discounts can be pyrrhic victories

Tags: Autologica, DMS, ERP, SMB, SMBs, dealer management systems, auto dealer software, automotive, auto industry, automotive industry, auto dealer, auto dealers, car dealer, car dealers, motor vehicle dealer, motor vehicle dealers

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