ERP Proposal Price Normalization Worksheet
ERP proposals rarely list costs in the same shape. One bundles hosting, one prices integrations per interface, one hides training in a services estimate. Until costs sit on the same lines you are comparing different things. This worksheet gives you a common structure and a five year view for three vendors.
| Cost line | Vendor A one-time | Vendor A per year | Vendor B one-time | Vendor B per year | Vendor C one-time | Vendor C per year | A, 5 year total | B, 5 year total | C, 5 year total | |
|---|---|---|---|---|---|---|---|---|---|---|
$1,050,000 | $1,100,000 | $925,000 | ||||||||
$420,000 | $380,000 | $510,000 | ||||||||
$60,000 | $90,000 | $45,000 | ||||||||
$135,000 | $150,000 | $165,000 | ||||||||
$0 | $355,000 | $0 | ||||||||
$50,000 | $40,000 | $65,000 | ||||||||
$125,000 | $0 | $150,000 |
Rename the vendor columns in your export. Add rows for any cost a proposal hides in a footnote: sandbox environments, extra modules, test data, travel, taxes and annual uplift. The 5 year total ignores uplift and discounting, so adjust annual amounts to an average if the contract escalates.
Proposal comparison review
Optional: have an expert check your normalized view for missing cost lines.
Optional. The tool and every export work without this. No spam.
How to use it
Replace the sample rows with the cost lines from your proposals. For each vendor, enter amounts you pay once and amounts you pay every year. Where a vendor bundles several things into one price, put it on the closest line and note the bundle. If a proposal omits a line that others include, enter your best estimate rather than zero, otherwise the cheapest bid may only be the least complete. The sheet totals each vendor for five years and shows the spread.
The standard lines
The default rows cover the lines most proposals touch: software, implementation services, data migration, integrations, hosting, training and support. Add lines as needed for sandbox environments, third party add-ons, localization, testing, project management and contingency. A consistent line structure also makes it easier to ask each vendor clarifying questions in the same order and to challenge any line that is far from the others.
Reading the result
In the sample data, Vendor B has the highest upfront cost but the lowest annual run rate. The five year totals sit within a modest spread, so the decision turns on risk, fit and the terms rather than price alone. Look at which lines drive the spread. A large services gap suggests different assumptions about scope, so ask each vendor to price the same scope document.
- Compare lines, not just totals
- Check what each vendor assumes about your team's effort
- Ask for fixed price or capped services
Common mistakes
Teams compare year one subscription to a perpetual license without adding maintenance, or leave out integrations because the vendor says they are standard. Others forget that time and materials estimates tend to run over. Put a contingency line on every vendor in proportion to risk. Finally, do not treat the worksheet as final: refresh it after each best and final offer round.
Frequently Asked Questions
Why use five years?
Five years is a common planning horizon for ERP because it captures implementation and several years of run costs. Change the multiplier in your own copy if your board uses seven or ten years.
How do I treat a vendor that leaves a cost line blank?
Do not assume it is free. Ask the vendor whether it is included, excluded or not applicable, and enter your best estimate until you get a written answer.
Should internal staff time be included?
Yes if you want true total cost of ownership. Add a row for backfill and project team time for every vendor, because their delivery models ask different amounts of your people.
Does this include taxes?
Not by default. Add a row for sales tax, VAT or GST where it is not recoverable, and keep treatment consistent across vendors.
If you would like a neutral review of how your proposals compare line by line, our team can help. The worksheet is free to use and export without us.
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