Dynamics 365 Costs for Manufacturing: Implementation Pricing

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If you haven’t already read Part 1 of uncovering the cost of Dynamics 365 Business Central for manufacturing I suggest you do that. In the first part we figured out how many licenses of Dynamics 365 you need and whether you should get an Essentials or Premium license.

In this article we’re going to go over the Dynamics 365 cost of implementation and the difference of fixed fees vs time and material billing when it comes to your implementation and support.

Fixed Fee vs Time and Material Billing for Implementation and Support

There are two types of costing for a Dynamics 365 implementation:

  1. Fixed fee
  2. Time and material billing

Time and material billing relies on the actual time spent and resources used. You pay for the time of the consultants, the time spent customizing your Business Central experience, the time it takes to train your staff, and any additional services that may be needed.

The major drawback with consultants that use time and material billing is that they charge you hourly while learning your business, operations, and processes.

Fixed fee implementations, on the other hand, mean that they quote you at a standard price for your licenses, training, and support, and stick by it. Consultants that use fixed fees often stick to one vertical that they’re experts in. And because they’re experts in your industry (manufacturing, for example), they’re able to get the implementation done faster and charge less for it.

How do they do that? They’re experts in implementing Dynamics 365 Business Central manufacturing! They already know your business because they have performed many implementations with businesses similar to yours. 

Cost of Implementing Dynamics 365 for Manufacturers

The cost of implementation will depend on the size of your business, your needs, and the billing method of your partner. Let’s look at the table below that provides a rough cost comparison between fixed fee and time and material billing.

Size of Operations Fixed Fee Consultants Time and Material Consultants
10 to 30 employees $30,000 to $45,000  $30,000 to $100,000
30 to 80 employees $50,000 to $70,000 $50,000 to $140,000
80 to 250 employees $70,000 to $100,000 $72,000 to $240,000

It’s important to note that the cost from consultants that charge time and material billing will vary drastically. The best they can do is give you an estimate based on how long they think it will take them. That being said, they usually charge $150 to $250 per hour. 

For an implementation of Dynamics 365 for a manufacturer, the initial setup and heavy configuration phase might require 100-200 hours per month from a consultant. As the project progresses, this could reduce to 40-80 hours per month for fine-tuning, training, and support. Keep in mind, these are rough estimates; actual needs could vary significantly based on project specifics.

Continue to Part 3 of Dynamics 365 Cost for Manufacturing.

Closing Thoughts

At Sabre Limited, we are experts in manufacturing. We stand among the best Microsoft Dynamics manufacturing partners across North America. What sets us apart from our competitors is that we use fixed fees instead of time and material billing and we always put the customer first. 

Our areas of expertise include:

If you're interested in learning more about what Sabre Limited can offer, we've been dedicated to helping small to medium-sized manufacturers learn and adopt Dynamics 365. Reach out, and let's explore how we can contribute to the success of your manufacturing journey. Contact us at info@sabrelimited.com or call (519) 585-7524. We look forward to hearing from you.

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