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Running an SMB today means bleeding cash on software licenses—or spending big on code that’s yours. Which path puts profit in your pocket sooner? Let’s cut through the fluff and run the numbers.
1. Definitions (30 sec recap)
| Model | What It Really Means | Typical Cost Pattern |
|---|---|---|
| Off‑the‑Shelf SaaS | Pay‑per‑seat cloud tools that ship “one‑size‑fits‑most” workflows. Configuration not code. | Low (or free) onboarding, recurring monthly/annual subscription, expansion fees, integration addons. |
| Custom Automation | Purpose‑built software or scripted workflows that match your exact process map. Fully owned IP. | Larger upfront build, modest hosting & maintenance, zero per‑user tax. |
2. The TCO Reality Check
Total Cost of Ownership (TCO) adds all dollars you’ll spend: licenses, addons, integration glue, support tickets, user training, plus “shadow IT” creep. Calculating TCO before you buy keeps CFOs smiling — and QBR surprises away. www.staqinsider.com
3‑Year TCO – Typical 25‑Seat Automation Stack
| Time Horizon | SaaS Suite¹ | Custom Automation² |
|---|---|---|
| 12 months | $67 k | $117 k |
| 24 months | $129 k | $134 k |
| 36 months | $191 k | $152 k |
Includes $5 k/mo subscription, $5 k onboarding, $2 k/yr add‑ons.
² Includes $100 k build, $1.1 k/mo hosting & support, $4 k/yr upgrades.
Key Takeaway: SaaS looks cheap—until year 3, when compounding seat creep flips the script. By month 30‑ish, the custom build starts paying you back.
3. Break‑Even Math (DIY Calculator)
Break‑Even (Months) = Upfront Cost ÷ (SaaS Monthly Run‑Rate – Custom Monthly Run‑Rate)
Example: $100 k ÷ ($5 k – $1.1 k) ≈ 26 months. After 2 years and 2 months you’re cash‑flow positive owning your own code.
Drop your numbers into a simple Google Sheet—or our free ROI Fast‑Track Calculator inside Holistc™’s /solutions hub (link below) to see when green ink starts flowing.
4. Mini Case Studies (Real‑World Proof)
Case 1 – SaaS Stalls, Custom Soars (Retail)
Problem: Fashion retailer bleeding $50 k/yr on support‑desk SaaS tiers.
Solution: Holistc™ built a Slack‑native ticket router.
Result: 35 % faster resolution and $42 k annual savings by year 2. HelpDesk
Case 2 – Automation Crushes Ticket Volume (E‑Commerce)
Problem: Order‑status “Where’s my parcel?” emails buried a 5‑person CX team.
Solution: A bespoke WhatsApp bot tied to the ERP.
Result: Support tickets dropped 50 % in 30 days; break‑even hit at month 7. ringly.io
Case 3 – Agency Ops on Autopilot
Problem: Creative agency juggling six SaaS tools, duplicate data, missed deadlines.
Solution: Unified project dashboard + automated billing rules.
Result: Labor hours cut 22 %, project throughput up 30 %; every $1 invested returned $4 within first year. wheelhouse.software
Notice the pattern? Recurring SaaS charges look harmless…until scale.
5. When Custom Beats SaaS (Checklist)
Process Uniqueness – Your workflow is a snowflake (and a competitive edge).
Seat Growth Forecast – Headcount or customer portal usage will 5×.
Integration Pain – Spreadsheets glue tools together today.
Compliance/IP – Data residency, audit trails, or proprietary algorithms matter.
Long Horizon – You’ll still run this process 3+ years from now.
Check ≥ 3 boxes? Custom almost certainly wins.
6. When SaaS Still Makes Sense
MVP stage—need traction today.
Commodity back‑office tasks (payroll, email).
No in‑house owner for feature backlog.
Hybrid is okay: build the secret sauce, rent the plumbing.
7. Decision Framework (Harmozi‑Style)
Pain × Frequency × LTV = Automation Budget
Pain: How bad is the manual grind?
Frequency: How often does it hit?
LTV: How much lifetime value does fixing it unlock?
If that number > $50 k, stop renting—own the engine.
8. Next Steps
Map one killer workflow.
Feed costs into the break‑even sheet.
Book a 30‑min Cost Comparison Call with a Holistc™ solutions architect.
Ready to find out exactly when custom automation pays for itself? Book your ROI sprint now and let’s put real numbers on the board.
Holistc™ builds, ships, and scales automation that pays for itself—faster than your CFO can ask “what’s the ROI?”. Stop renting. Start owning.
