“How much does it cost?” is the first question and the one least often answered on warehouse software websites: many ask for a meeting before giving a price. These are the pieces that make up the real cost of a warehouse management system (WMS), so that you can compare quotes that come in different formats.
What the price of a WMS depends on
- →Volume: how many orders or shipments you move a month.
- →Number of warehouses and users.
- →Whether you store other people's goods (multi-client) or only your own.
- →Integrations: stores, marketplaces, carriers and your ERP.
- →Implementation: whether they set it up for you or you set it up yourself.
- →Whatever has to be custom-built for your way of working.
How warehouse software is charged
| Model | What you pay | What to ask |
|---|---|---|
| Purchased license | An upfront payment and annual maintenance | What maintenance includes and how much new versions cost |
| Subscription per user or terminal | A monthly fee for each person or device | What happens with peak-season temps |
| Subscription by volume | A fee with a number of orders or shipments included | How much each extra order costs |
| By modules | A base plus each function you add | Which modules you really need for your full cycle |
| Custom | A fixed quote after studying your case | What is left out of the quote |
Many quotes mix several: a base fee, plus users, plus connectors. To compare, convert everything to the same thing: total cost of the first year and cost of a normal month from the second year on.
The costs you do not see at first
- →Terminals: some WMSs require a specific PDA model.
- →Per-user or per-client licenses, which go up as you grow.
- →Paid connectors for each store or carrier.
- →Implementation and training hours.
- →Label printers, wifi throughout the building and bin labels.
- →Your team's time: numbering bins, cleaning up the item list and counting the opening stock.
- →Custom development and later changes.
- →What it costs to leave: whether your data stays trapped.
How to calculate the total cost for your warehouse
First year = setup + devices + (monthly fee × 12) + volume extras + your team's hours.
Following years = (monthly fee × 12) + volume extras + maintenance or replacement of devices.
And a figure that helps you decide: cost per order = cost of one month ÷ orders shipped that month. Calculate it with a normal month and with a peak-season month, because in the per-user and by-volume models it changes a lot.
What to compare it with
The price of the software only tells you something if you put it next to what it costs you today to work without it. We are not going to give you savings figures, because they depend on your warehouse, but here are the sums you can do with your own numbers:
- →Picking errors: orders with an error per month × what each one costs you (collection, reshipment, customer service time).
- →Time spent looking for product or copying orders by hand: hours a week × cost per hour.
- →Sales lost or canceled because of stock the system said was there.
- →If you are a third-party logistics provider: services you perform and never get to bill because they are not measured.
The formulas for measuring it are in warehouse KPIs.
Questions worth asking before signing
- →Does the price include all the shipments in my volume, or are they charged separately?
- →Do you charge for every client or user I add?
- →What hardware do I need?
- →Are the integrations with my store and my carriers included?
- →How much does setup cost and what does it include?
- →Is there a lock-in period?
- →Can I export my data at any time?
- →Is the price you are giving me with or without VAT?
If besides price you want to know what to test in the demo, see WMS software: how to choose it.
What Ubika costs
In Ubika the price is published. All amounts exclude VAT and there is no lock-in.
| Plan | Monthly fee | Shipments included per month | Each extra shipment |
|---|---|---|---|
| Start | €199 | Up to 1,000 | €0.18 |
| Pro | €499 | Up to 3,500 | €0.12 |
| Max | €799 | Up to 8,000 | €0.08 |
| Custom | To be discussed | Agreed to your volume | — |
Start is for one warehouse and includes receiving, guided picking, packing, dispatch and manifests, with the PDA on as many phones as you want, the store and carrier integrations, and the warehouse's clients with their portal, with no limit. Pro adds the third-party logistics features (separate stock and billing per client), a management dashboard, automatic replenishment and waves. Max adds several warehouses and the planner with the building in 3D. There is no charge for each client of the warehouse or for each phone acting as a PDA. See pricing. If you are a small business and still unsure whether you need it, start with warehouse software for small businesses.
Frequently asked questions
Keep reading
- Picking with a PDA: what it is, how it works step by step and which terminal you need
- How to organize and number the locations in a warehouse
- Stock control in Excel: how far it goes and when to move on
- Cycle counting: how to count the warehouse without closing it
What Ubika does: warehouse management software · software for 3PLs · WMS for e-commerce