It’s almost impossible to remain successful in digital commerce without intelligent product information management (PIM). As a result, the global PIM market is booming. But how much does it cost to implement and run a PIM system? And when does it start to pay off? A calculation tool.
How much will a PIM system cost me?
In order to get a reliable idea of how analogue products fit into the digital world, customers need access to a wide range of information. Colour, dimensions, material composition, weight, usage options and operating information are just a few examples. The following rule applies: The more complex a product is, the greater the need for information. Estimates suggest that PIM data records can contain hundreds of attributes. Managing all of these without an appropriate PIM solution is a pretty hopeless endeavour.
Read our blog to find out whether investing in a PIM system really pays off, and who benefits from it. Once this question has been answered, the next one pops up: How much will a PIM system cost me? Unfortunately, there is no one-size-fits-all answer to this question, as it depends on various factors: these include the size of the company, it’s capacity to be flexible, the number of products and the desired functionalities offered by the solution.
Off-the-peg offers are therefore few and far between in the PIM market. A careful analysis of your own requirements and a detailed quotation from the provider are essential when calculating the cost of a PIM system. Nevertheless, the implementation and operating costs of a PIM system can at least be roughly estimated using a few standard parameters.
Cost factors for introducing a PIM system
The Total Cost of Ownership (TCO) of a PIM system is made up of various factors. In addition to the direct acquisition costs, ongoing operating costs and expenses for training, system customisations and expansions should also be included in the calculation. The implementation of a PIM solution incurs the following costs:
Licences
The licence fee for the PIM software can vary greatly, depending on the provider and the range of functions. From a lean cloud solution for small and medium-sized companies to a comprehensive PIM suite that allows hundreds of thousands of product data entries to be monitored at the touch of a button – the PIM market offers the right solution for pretty much every need.
Implementation
The cost of setting up a PIM system depends on the scope of the project, the complexity of the data migration, and the amount of customisation required. This can also include costs for consultations, training, and change management (the latter should by no means be underestimated).
Data cleansing
How successful a PIM system is depends on the quality of the product data. Incomplete or incorrect data usually entails additional costs for data cleansing and enrichment.
Cost factors for implementing a PIM system
Implementation accounts for the lion’s share of the total costs of a PIM system, yet operating the software does not come for free either. The following factors should therefore be included in the cost calculation.
Deployment model
How much a PIM system costs during operation is also determined by the deployment model. If you opt for an on-premise solution, you should consider server, storage and network costs in your calculations. However, with software-as-a-service packages, the use of the infrastructure is usually included in the monthly subscription. What companies have to pay for a PIM cloud solution depends on the number of users, the volume of data to be processed, and how many functions are required. Experience has shown that companies with medium data volumes and more complex requirements should budget between 100 and 500 euros per user and month.
Integrations
If the PIM system is to be connected to other solutions (e.g. new sales channels, shops or marketplaces), additional costs are incurred for integration and interface development. Many SaaS providers offer pre-built connectors to common systems and APIs, which shortens the integration time. Additional integration costs may be incurred for complex integrations or customisations, however.
Data migration
Product ranges change, products are further developed. Accordingly, all product information must be continuously updated and maintained, and any resulting costs must be taken into account in the calculation. The same applies to both on-premise and cloud systems: the more complex the product information, the more complex and therefore more expensive the data migration and maintenance work will be.
Maintenance, support
Experience shows that the annual fees for maintenance and updates for on-premise solutions are between 15 and 20 per cent of the original licence costs. There may also be additional costs for updates and upgrades. In the case of SaaS products, these are usually already included in the price, while support agreements may incur additional costs.
The same applies to PIM: no money, no fun. Just how much money you spend on a solution, however, depends on the company’s individual needs. Small stand-alone systems from the cloud are now available in the lower four-digit euro range. However, PIM systems only realise their full potential through seamless interaction with ERP or CRM solutions. Whether such investments pay off, and if so, how, is therefore always a matter for individual assessment.
Conclusion
Professional PIM doesn’t come for free. However, the majority of retailers and manufacturers see a return on their investment within a very short space of time.
