When you look to purchase software — or almost anything — your return on investment (ROI) is an important part of the decision. You’re asking a simple question: is it worth it?
A new console game at $60 is not cheap. However, if it gives you 100 hours of entertainment, the cost per hour may feel fair. If the game is shorter, the cost per hour rises, but perhaps it is more enjoyable. You reassess the value and decide if the cost still feels right.
The same logic applies to clothing. You may pay more for something that lasts longer, performs better, or is made more ethically.
In every case, the buyer asks the same thing: What is the value to me?
Two Types of Software Purchases
Software often falls into two groups:
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Tools that let you do something you cannot do without specialist software
(Very few photographers use MS Paint.) -
Tools that improve a task you already do in another system
(Many teams use Excel for things it was not designed for.)
The first group is easier to evaluate because you know you must spend something. You simply decide which system fits best.
The second group is more complex. You are not only asking how much the software costs. You are also asking how much better it is than the tool you already use and already pay for.
Over my nine years at Artifax, I have seen Excel — often paired with Outlook — used for an enormous range of tasks: room bookings, staff schedules, vacation tracking, maintenance logs, festival submissions, and much more.
It works, but only up to a point. It is not built for these jobs.
So the real question becomes:
How much time will a dedicated system save you, and is that time worth the cost?
A Simple Cost-Time Exercise
When we speak with new prospects, we often use our ROI Calculator. It asks how long common admin tasks take each week. We can then compare that with how long the same tasks take in ArtifaxEvent or ArtifaxAgora.
You are shown a clear comparison:
Using Artifax will save you X hours every year compared with your current process.
You can then multiply those hours by the average hourly cost of the staff doing the work.
That gives you a simple ROI calculation:
Staff Time Saved – Software Cost = ROI
This is also a helpful way to compare competing systems. System A may be cheaper, but System B may save far more staff time each year. The extra value can outweigh the higher price.
One thing to stress: this process is not about replacing staff. It is about freeing people to do the human-centric parts of their job instead of repetitive admin.
Software cannot negotiate a contract.
But it can produce the contract in one click.
Software cannot upsell a client.
But it can produce a weekly sales report for your Head of Sales.
You already pay for your staff. It makes sense to give them tools that let them focus on what only they can do.
Beyond Functionality: Other Factors That Affect Value
Functionality matters, but it is not the whole story. A product’s value includes non-functional factors too. Here are a few worth considering.
Data Security
Are they ISO 27001 certified? Do they hold Cyber Essentials?
These credentials take time and money to earn and maintain. They show the supplier treats your data as seriously as their own.
It may help to ask:
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How much would it cost us if we lost access to our data?
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What if backups only ran weekly instead of daily?
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How much risk are we willing to carry?
Security has real value, even if it is harder to quantify.
Support and Services
Two suppliers may offer similar systems, but one charges £500 more each year for 24/7 support. If you call them once in three years, that is a £1,500 support call. In many cases, the issue likely could have waited until morning.
At Artifax, we support more than 14,000 users and have never needed to answer a support ticket outside core hours. Our cloud environment alerts us instantly, so we address issues before the user even needs to call.
Ask yourself:
Do we really need 24/7 phone support? Or is email support enough?
For training, does it matter if a trainer is in the same country if the entire process is remote anyway?
Industry Knowledge
Newcomers may be cheaper as they enter the market. Established companies may charge more because their sector experience has value.
You should not need to explain your industry to your supplier. A long-standing provider will already understand it and can offer best-practice guidance. Their staff may also have relevant experience — for example, they may be Prince2 certified and able to run your project effectively.
Summary
Some of the above is subjective, and the “right” answer will vary for each buyer. Still, these questions can help you judge a product’s value in relation to its cost.
When a company describes a feature or benefit, pause and ask:
“What is the value of this to me?”
That simple question can clarify your ROI more than any price tag alone.