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How much does custom software cost?

Software ownership and vendors · Updated

Filip Papranecfounder of Digitaliko

Each route wins in a different situation. You pay for capacity, not an estimate. Illustration: three options side by side, a project, SaaS and a subscription, with the subscription highlighted.Each route wins in a different situation. You pay for capacity, not an estimate. Illustration: three options side by side, a project, SaaS and a subscription, with the subscription highlighted.

The cost of custom software depends on four things. How many processes you cover, how many systems it connects to, what data has to be moved and who will run it. With us you have two options: a monthly subscription from €3,980 excl. VAT that you can pause or cancel any time, or a fixed price for a clearly bounded scope.

Below is what drives the price up and where you can save. Then an honest comparison of a project, SaaS and a subscription, and four things to look for in every quote.

What does the cost of custom software depend on?

What raises the priceWhyHow to save
Many processes at onceEvery process has exceptions that only show up during the workStart with the one process that costs the most time
Integrations with other systemsAccounting, online shop, bank, email, every integration is extra workConnect only what someone retypes by hand today
Data migrationUntidy Excels, or data locked in at a vendorTidy your sheets and request your data in good time
Changes after launchIn a project, every change is a new quoteAgree on how changes are billed before you sign
OperationsServer, backups, updates, fixesAsk who does it and what it costs per month
Who owns the resultIf not you, you pay again when you leaveHave ownership written into the contract

The most expensive row in the table is usually the last one. You will not see it in the quote. You will see it when you want to leave. More in Vendor lock-in: how to tell you are trapped.

Project, SaaS or subscription: what pays off?

Each path wins in a different situation. Honestly:

Off-the-shelf SaaS is the cheapest to start. You pay monthly per user and the vendor writes the price list. It fits when your process is standard and you do not have to change how you work for it. Then do not have custom software built.

A fixed-price project from an agency gives you a certain sum. It fits when you know exactly what you want and the scope will not change. When the brief gets clearer during the work, every change is a new quote. And months often pass between signing and the first result.

Your own developer gives you control. But hiring takes months, and then all the know-how sits in one person's head. It fits when software is your main product.

A monthly subscription means you pay for capacity, not for an estimate. Changes are part of the month. It fits when the process is yours, the company will run on the system and you want to own it without hiring a whole team. This is how we build custom software most of the time. When the scope is clear, we also send you a fixed price.

Project, SaaS or subscription, shown on orders retyped from emails: off-the-shelf SaaS, a fixed-price project, your own developer and a monthly subscription. For each, what you pay for, when it fits and what to watch out for.Project, SaaS or subscription, shown on orders retyped from emails: off-the-shelf SaaS, a fixed-price project, your own developer and a monthly subscription. For each, what you pay for, when it fits and what to watch out for.

How much does custom software cost with us?

Try the first month. If we miss what we wrote down, we refund 50 %. Monthly subscription from €3,980 excl. VAT, pause or cancel any time. Or a fixed price per project: tell us what you need and we send you a quote. Code, data and infrastructure owned by the client from day one.

Two options:

Fixed price

  • A clearly bounded scope for one price
  • It can be less or more than the subscription
  • Tell us what you need and we send you a quote and a list of what we will deliver

Monthly subscription

  • From €3,980 a month excl. VAT
  • Pause or cancel any time
  • Direct access to Filip, a new version every week
  • Changes are part of the month

At the start we agree in writing what should be done by the end of the month. That is also what the 50 % guarantee is measured against.

We build the first version fast (on one project in under 10 working days). Most of the time goes into rolling it out in the company: people start using it, give feedback and we fine-tune it.

How do you work out whether it pays off?

Take one process that repeats and work it out in four steps:

  1. How often a month

    Count how many times a month the process is done.

  2. How many minutes

    Measure how long one round takes.

  3. How many people

    Find out how many people do it.

  4. Times 12

    Multiply it all and you have the yearly time you pay people for software's work.

The automation ROI calculator does the math faster.

What does it look like in practice?

We did exactly this with invoices in our own accounting. Processing took 10 to 15 minutes per invoice, now it takes under 1 minute.

per invoice, down from 10 to 15 minutes
< 1 min
go through with no person at all
70 %
running
2+ years

Case study: invoices from email

We did not change the whole accounting. Just one process that kept repeating.

For a freight forwarder we created and run a system that replaced their Excels.

What should you look at in a quote before the price?

Two quotes on your desk? Before you compare the sums, tick what you find in them:

If ownership is not in the quote, it is not yours. More in Who owns the source code of custom software?. "Bugs" are usually not "changes", and you will need changes in month two. What the quote will not do is what you will argue about in month three. If the vendor cannot say how you get your data out, first read Vendor won't release your data? What to do.

Someone once showed us a quote from another studio. The best part was a column saying what each module does not do. Our quotes have had that column ever since. The same test applies to our quote.

Knowing what to deliver and how is not cheap. Responsibility is not cheap when it breaks six months later.

Filip Papranec
Filip Papranec
founder of Digitaliko

When we don't recommend it

  • Your process is standard and an off-the-shelf SaaS handles it. Buy the SaaS. Custom software would cost you more.
  • One person spends a few minutes a week on the task. It does not pay off. A better spreadsheet or a ready-made tool is enough.
  • You want one app and nothing after. Then a subscription makes no sense. Tell us what you need and we send you a quote and a list of what we will deliver.
  • Software is your core product and you have time to hire. Hire your own developer. The control stays in your company.

We don't sell a finished product. Every company works a little differently, and that is exactly what custom software solves.

Filip Papranec
Filip Papranec
founder of Digitaliko

Want to know what it would cost for you?

Tell us which process costs you the most time. We get back to you within two business days, and together we pick what to fix first.

If you'd rather talk first, book a 15-minute meeting with Filip.

Which process costs you the most hours a month today?

In short

  • Four things set the price of custom software: the number of processes, integrations, data migration and operations.
  • Buy off-the-shelf SaaS for a standard process. Custom makes sense for what sets you apart.
  • With us you pay a monthly subscription from €3,980 excl. VAT, or a fixed price for a bounded scope.
  • In a quote, look first for ownership, the warranty and what the vendor will not do.

Frequently asked questions

How much does custom software cost?

It depends on the number of processes, integrations with other systems, data migration and who will run it. With us, a monthly subscription starts at €3,980 excl. VAT and you can pause or cancel it any time. For a clearly bounded scope we send you a fixed price.

Is a fixed-price project or a subscription cheaper?

A fixed-price project fits when you know exactly what you want and the scope will not change. When the brief gets clearer during the work, you pay for every change separately in a project. In a subscription, changes are part of the monthly capacity. We do both: tell us what you need and we send you a fixed price, or we start with the subscription.

Why is the price of custom software not a single number?

Because at the start nobody knows exactly what a process hides. When the scope is clearly bounded, we send you a fixed price. When it is still taking shape, it is more honest to start with one process, show a result in the first weeks and decide what comes next based on it.

What if you do not deliver what you promised in the first month?

We refund 50 % of the first month. It applies to what we agreed in writing at the start.

When is custom software not worth it?

When your process is standard and an off-the-shelf SaaS handles it without you changing how you work. Then buy SaaS. Custom makes sense for what sets you apart.

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Filip Papranec, founder of Digitaliko. On LinkedIn we tackle technical challenges, share development know-how and show how AI actually changes business. We don't do AI hype: we're realists, not dream sellers.

Time to stop planning and start solving.

Contact

  • Digitaliko s.r.o.
    Šípková 377/17
    958 03 Malé Uherce, Slovakia
  • Get in touch
    info@digitaliko.com
    +421 950 595 506
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