Buying ERP through a reseller (a value-added reseller, VAR, or solution partner) means one firm quotes the licence, implements the system and usually gives first-line support. Buying direct means the vendor sells the licence and you hire implementation separately or from the vendor. Neither is cheaper by default; the contract terms decide.
The question usually arrives as "is a reseller marking up the price?" or "will a partner look after us after go-live?". Both are reasonable worries, and both have answers you can get in writing before you sign. This guide is for finance leads, operations managers and IT leads comparing ERP quotes. It explains how ERP vendors sell, what each channel controls, the cost lines to compare over the life of the contract, who handles support in the first year, how to change partner later, and when a packaged ERP is not the right fit at all and custom ERP software, or a package with custom modules, is the better route. For the full cost model behind the comparison, use our ERP total cost of ownership guide alongside this one.
Key takeaways
- The channel is set by the vendor, not by you. Some products are sold mainly through partners; others are sold direct and through partners.
- A partner quote and a direct quote are only comparable when both list the same users, modules, term, support level and renewal terms.
- Ask who controls the licence quote, what the list price is, and how renewals are priced after the first term.
- Compare five cost lines over the same period: licence, implementation, support and maintenance, customisation, and renewals.
- Get the first-year support model in writing: who takes tickets, response targets, and how product defects reach the vendor.
- Make sure you hold the admin access, the data and the documentation, so you can change partner without starting again.
How do ERP vendors sell their software?
ERP vendors sell through four channels: their own direct sales team, resellers or VARs who sell the licence and add services, implementation partners who deliver services while the vendor sells the licence, and app marketplaces for add-ons. Many vendors use several channels at once, and the mix can differ by country and company size.
| Channel | Who sells the licence | Who implements | Who usually gives first-line support |
|---|
| Direct from the vendor | Vendor sales team | Vendor services team or a separate implementation partner | Vendor support, or the partner if one was hired |
| Reseller, VAR or solution partner | The partner, under its agreement with the vendor | The same partner | The partner, escalating product defects to the vendor |
| Implementation partner (services only) | Vendor | The partner | Agreed in the contract; often split between partner and vendor |
| App marketplace | The vendor or the add-on publisher | The publisher or your partner | The publisher, for its own add-on |
A firm can play more than one role. Some partners resell licences in one country and only provide services in another, so ask each firm which role it plays in your deal.
Which ERP vendors sell direct and which sell through partners?
The pattern varies by product and changes over time, so check the vendor's own site for your country. At the time of writing, several vendors describe partner-led sales for their small and mid-market products, while others sell direct and through partners. The examples below are taken from the vendors' own pages.
- SAP Business One. SAP describes Business One as sold, implemented and supported by its partner network.
- Microsoft Dynamics 365 Business Central. Microsoft's pricing page asks buyers to contact a partner to purchase, or for an assessment, consulting services or additional pricing.
- Oracle NetSuite. NetSuite describes two partner types: Solution Providers, which sell NetSuite licences and implement and support them, and Alliance Partners, which work with NetSuite's own sales team on consulting, integration and implementation. A buyer can therefore deal with NetSuite's sales team or with a Solution Provider.
- Oracle. Oracle has its own sales organisation, and the Oracle PartnerNetwork gives partners resell rights for cloud products once they achieve a Sell Expertise and sign Oracle's distribution terms.
- Odoo. Odoo sells subscriptions and its own implementation packs directly, and also lists official partners who implement it.
- Marketplaces. Microsoft's commercial marketplace lists Business Central apps from publishers, and the SAP Store sells SAP and partner solutions.
This list is descriptive only. It is not a ranking, and a channel says nothing about product quality.
Is a reseller more expensive than buying direct?
Not by default. A reseller is paid by the vendor through its partner agreement and by you through services, so its licence price may match, beat or exceed a direct quote. What matters is whether the licence lines are shown separately from services, and whether renewal and support terms are written down.
Pricing transparency comes down to three questions:
- Who controls the licence quote? In a partner-led sale the partner usually prepares the licence quote within the vendor's price list and its own agreement. In a direct sale the vendor's sales team does. Ask for the vendor's published list price, where one exists, next to the quoted price.
- Is any discount on the licence, or on services? A large discount on implementation days can hide a full-price licence, and the reverse. Ask for licence, implementation and support as separate lines.
- What happens at renewal? First-term prices are often negotiated; renewals may not be. Ask how the subscription and support prices can change at each renewal, whether a cap on increases can be written into the contract, and whether user or module minimums apply.
This guide does not print partner margins or discount levels. They vary by vendor, country and deal, and published figures go out of date quickly. Ask each bidder in writing instead.
What should a reseller and a direct quote both include?
Both quotes should cover the same five cost lines for the same period, users and modules: licence or subscription, implementation, support and maintenance, customisation and add-ons, and renewals. If one quote leaves a line out, ask for it rather than assuming it is free or included elsewhere.
| Cost line | Reseller quote: what to check | Direct quote: what to check |
|---|
| Licence or subscription | Per-user or per-module price, term, list price shown, minimums | Same, plus whether a separate partner is still needed to implement |
| Implementation | Days or deliverables, roles, what counts as done, change process | Vendor services scope, or the separate partner's scope and price |
| Support and maintenance | First-line support by the partner, response targets, escalation to vendor | Vendor support plan, and who supports your configuration |
| Customisation and add-ons | Who owns the code, how it survives upgrades, add-on subscriptions | Same; check whether the vendor will support partner-built extensions |
| Renewals | Renewal price basis for licence and support, increase cap, notice period | Same, direct with the vendor |
Add your own staff time and data migration effort to both columns. Those lines do not appear on either invoice, but they are part of total cost of ownership.
Who supports you through go-live and the first year?
In a reseller or partner-led deal the partner usually runs go-live, hypercare and first-line support, and escalates product defects to the vendor. In a direct deal the vendor supports the product, and your configuration and customisations are supported by whoever built them. Write the split into the contract.
Support demand is often highest in the first year, because users meet the system under real volumes and the first month-end and year-end runs happen. Ask each bidder:
- Who takes a ticket: a named partner team, the vendor's support desk, or both?
- What are the response and resolution targets for each priority level, and in which hours?
- How long is hypercare after go-live, and what is included?
- How is a product defect passed to the vendor, and who chases it?
- Are configuration changes and small enhancements in the support fee or charged separately?
- What happens at the first year-end close, and is support on hand for it?
Readiness before go-live matters as much as support after it. The ERP implementation partner red flags and go-live gates guide sets out four gates to write into the plan.
Can you switch ERP partners later?
Usually yes, but how easily depends on the contract. In many partner-led channels the subscription can be moved to another partner or to the vendor; ask the vendor how its process works. The practical risk is knowledge: configuration notes, customisation code, integration details and admin access must stay with you.
Protect your ability to switch before you sign:
- Hold the main administrator account in your own name, not the partner's.
- Require documentation of configuration, customisations and integrations as a deliverable.
- State who owns customisation code and where it is stored.
- Agree a notice period and a handover duty at the end of the support term.
- Keep a copy of your data exports and test that you can read them.
What questions should you ask a reseller and the vendor?
Ask the same written questions of every bidder so the answers can be compared: the role the firm plays, how the licence is priced and renewed, the implementation scope, the support model, and what happens if you leave. A checklist turns a sales conversation into evidence.
| Area | Question |
|---|
| Role | Are you reselling the licence, providing services only, or both? |
| Licence | What is the list price, what is the quoted price, and what are the term and minimums? |
| Renewal | How can licence and support prices change at renewal, and can a cap be written in? |
| Scope | Which processes, modules, integrations and data loads are included, and what is excluded? |
| People | Who are the named consultants, and what notice do we get if they change? |
| Support | Who takes tickets in year one, with what targets, and how are product defects escalated? |
| Customisation | Who owns custom code, and who updates it when the vendor upgrades? |
| Exit | Can the subscription move to another partner or to the vendor, and what handover is included? |
| References | Can we speak to a customer of similar size, including one whose project had problems? |
Illustrative example
This example is hypothetical. A distributor with around 40 users receives two quotes for the same product. Quote A comes from a reseller and shows one total for licence, implementation and support. Quote B comes from the vendor for the licence, plus a separate implementation partner for services.
At first glance Quote A looks simpler and Quote B looks cheaper. After the distributor asks both bidders to split the five cost lines, three differences appear. Quote A includes a defined hypercare period and first-line support for the first year; Quote B's vendor support covers the product but not the partner's configuration, which needs its own support agreement. Quote B's licence states how renewals are priced; Quote A's does not, so the distributor asks for the renewal basis in writing. And neither quote says who owns two custom reports, so both are asked. Once the gaps are filled, the comparison is about service and terms rather than headline price.
When is this the wrong approach?
Comparing reseller and direct quotes is the wrong exercise when no package fits your core processes. If the comparison keeps adding customisations, workarounds and add-ons, the channel is not the problem. A custom ERP, or a package with custom modules for the distinctive parts, may cost less to own and change.
Signs that neither channel fits: your pricing, production or service rules need heavy customisation in every shortlisted product; the custom code would need rework at each vendor upgrade; per-user licences would grow faster than the value you get; or you need integrations no add-on provides. In those cases compare a package against a build using the same TCO lines, as in NetSuite vs custom ERP. The custom ERP vs SAP comparison covers the same choice for SAP Business One. Equally, if a standard package fits most of your processes, buying it through the channel the vendor uses is usually the simplest route.
Glossary: VAR, value-added reseller, a partner that resells a vendor's licence and adds services. Solution partner or solution provider, a vendor's term for a reselling and implementing partner. Implementation partner, a firm that configures and deploys a package. Hypercare, the period of extra support straight after go-live. Renewal uplift, a price increase applied when a subscription or support term renews.
How Timeline Digital approaches this
Timeline Digital is a custom software development company founded in 2013 and headquartered in Islamabad, Pakistan. This guide describes how vendors sell, for buyers comparing options; Timeline Digital's own work is building custom ERP software, and custom modules alongside existing systems, as managed projects. Before you commit to the full project, we build 2 to 3 of your key modules as working software, free of charge, ready in about 2 days. Your team tests the pilot, and the full build starts only after you approve it. The full project starts after you approve the pilot, and the scope, milestones and terms are agreed after it. There is no fixed timeframe: the schedule is set from your requirements in the Plan step. Timeline Digital does not publish prices for custom software, because every project is custom.