product media
13 min
PIM Costs: What does a PIM system cost?
Perhaps you are currently looking for a PIM solution for your company and are asking yourself the question: “What does a PIM actually cost?”. In this article, you can find out which costs you should calculate and which prices represent a typical industry average!
Table of Contents
Key Takeaways
A PIM system can help companies to manage and optimize their product data efficiently. Whether SaaS or on-premise, the choice of the right system depends on individual requirements. Companies should carefully consider the license costs, maintenance costs and hosting fees and not lose sight of the potential ROI.
Introduction to PIM costs
A PIM system (Product Information Management) has become indispensable for many companies that want to manage their product information centrally and efficiently. Especially in industries with a high volume of product data, such as e-commerce or the B2B sector, managing information quickly becomes a complex task.
A PIM helps to structure these processes and ensure data quality. But what are the costs of such a system? In this article, we shed light on the various factors that influence PIM costs and show what expenses can be incurred when implementing a PIM system.
Definition: What is a PIM system?
A PIM system is a software solution that helps companies to store, manage and update their product information centrally. This includes all important product information, such as descriptions, images, prices and technical data.
Good product information management ensures that this information remains consistent across all channels. Especially in times when e-commerce is booming, it is becoming increasingly important to make the management of product data as efficient as possible.
Data is maintained centrally in the PIM and can be automatically transferred from there to other systems, such as an on-premise store or a SaaS solution. This ensures that all product data is up to date and avoids errors caused by manual entries.
Advantages of a PIM solution
A PIM system offers numerous advantages. It enables product information to be managed centrally and ensures that it remains consistent and up-to-date across all channels (e.g. in omnichannel marketing). Another advantage is the time saved. Data maintenance can be carried out much faster and more efficiently as all information is managed centrally.
A PIM also improves data quality by ensuring that all important attributes are recorded completely and correctly. This not only increases the product experience of your customers, but also efficiency within the company.
All cost factors at a glance
The costs for a PIM system depend heavily on the individual requirements and vary from provider to provider. Basically, there are various cost blocks here, which we would like to highlight in the following paragraph.
There are not only the one-off license costs, but also ongoing costs, such as for maintenance and hosting. In any case, there are also expenses for the introduction of a PIM system.
The cost of PIM software can vary greatly depending on the software provider and the customer’s individual requirements.
License costs
License costs are one of the largest recurring costs incurred when implementing PIM solutions. They can either be paid once or incurred monthly or annually as part of a subscription model.
Especially with a SaaS solution, where the software is hosted in the cloud, the running costs are often lower. An on-premise solution, on the other hand, where the system is hosted in the company’s own data center, requires a higher initial investment.
The costs can also vary greatly depending on how many users access the PIM system and how many PIM modules are required to manage the product information. An average PIM system can cost between $ 30,000 and $ 60,000 per year, depending on the specific requirements and the size of the company.
Maintenance and Updates
In addition to the license costs, maintenance and update costs also represent a cost block. Maintenance is crucial to ensure that the system always works smoothly and is always up to date.
Hosting the solution
Another important cost factor is the cost of hosting. Here, companies usually have the choice between on-premise and cloud solutions.
While cloud-based PIM systems often have lower hosting costs, as the provider is responsible for providing the infrastructure, choosing an on-premise system can result in higher hosting costs, as it requires its own data center and server structure.
This leads to additional internal costs for the hardware, operation and maintenance of the data center.
Number and scope of user-defined PIM modules
Leading PIM systems have a modular structure and offer companies the opportunity to customize the system to their individual needs. Every company has specific requirements when it comes to managing and maintaining product data.
Therefore, customizing the solution with user-defined modules, which are individually programmed by the manufacturer, can result in additional costs.
What is a PIM module?
A PIM module is a part of the software that provides special functions to fulfill certain tasks. For example, a module could be responsible for the management of text modules, the creation of product catalogs or integration with other systems.
Customization through such modules enables companies to optimally adapt the PIM system to their needs and further automate the management of product information.
Own PIM modules in 4ALLPORTAL
The 4ALLPORTAL offers a wide range of customizable modules that companies can use to tailor their PIM system to their individual requirements.
Whether it is the integration with other systems, the management of specific product data or the customization of the user interface – the flexibility of the modules makes the PIM system a scalable and tailor-made solution.
PIM costs in Comparison: SaaS vs. On-Premise
When selecting product information management systems, the question always arises:
On-premise or cloud hosting? A decision needs to be made depending on the customer’s business requirements.
Which of the two hosting options is cheaper again depends on various factors, such as the internal maintenance effort for on-premise or the amount of data to be managed for cloud-based solutions.
Which companies benefit from SaaS solutions?
SaaS solutions are particularly attractive for small and medium-sized companies that do not want to operate an extensive IT infrastructure. These solutions are quick to implement and generally incur lower initial costs.
They also offer the advantage that the software is hosted in the cloud, meaning that no expensive investments in hardware or infrastructure are required. SaaS solutions usually only incur monthly or annual license costs.
On-premise PIM software for larger companies
For larger companies with specific security or compliance requirements, an on-premise solution may be more suitable. This offers more control over the data and allows the company to make its own adjustments.
However, the initial costs for the hardware and ongoing maintenance costs are higher. Companies that implement an on-premise solution must also provide the hosting infrastructure themselves.
What does a PIM system cost?
The cost of a PIM system depends heavily on the specific requirements of the company. Simple systems can start at $30,000 per year, while more complex PIM systems for larger companies with many products or SKUs can easily amount to $60,000 or more.
The total PIM costs vary depending on the provider, the number of modules and the complexity of integration with other systems. If you would like to find out how the costs for the 4ALLPORTAL PIM are made up, download our current price list directly:
PIM vendors and their pricing models
There are many different providers with different focuses and pricing models, which means that the final PIM systems vary greatly. For example, one solution may have lower implementation costs but incur additional costs for customization and support.
Basically, you must always calculate with cost centers in the following areas:
- Implementation: One-off costs
- Consulting & training: One-off costs
- Hosting: Ongoing costs
- Maintenance: Ongoing costs
- Support: Ongoing costs
Return-on-Investment (ROI) of PIM
How is the ROI of a PIM solution calculated?
The ROI of a PIM solution can be calculated based on the savings in data maintenance and management as well as the increase in efficiency. Among other things, a PIM can improve your product data and reduce the time-to-market and returns rate in e-commerce.
The faster your new PIM leads to improvements in these areas, the sooner you will see a return on your investment.
How quickly should the ROI occur?
The ROI of a PIM solution usually occurs within 12 to 24 months, depending on the size of the company and the complexity of the product information. Companies that serve many channels can realize the ROI even faster.
Free ROI calculator for PIM software
A helpful tool for estimating the ROI of a PIM implementation is the free ROI calculator from 4ALLPORTAL. Companies can use this tool to calculate the potential savings and benefits of a PIM implementation. You can use it here:
Conclusion
A PIM system is a valuable investment, especially for companies with large product portfolios. The cost of implementation depends on many factors, including the type of system (SaaS vs. on-premise), the modules required and the size of the company.
By carefully analyzing PIM providers and pricing models, you can find the best solution for your company and benefit from it in the long term.
