What a Business Simulation Actually Costs
Here's something my own industry does that is sort of a bummer (aka: pain point): we don't publish prices. There is good reason for this and the goal of this article is to provide general estimates based on insights I’ve gathered from clients. Note: In full disclosure, I (and likely others in my industry) can’t publish prices for two primary reasons: 1) There may be legal challenges. 2) It’s next to impossible to provide pricing on anything that is tailored in anyway.
I went and checked before writing this, because I wanted to be fair about it. I looked at nineteen providers who sell business simulations. Twelve of them don't put a number anywhere on their site. Just "contact us," "book a demo," "tell us about your learning goals." Simulation Studios is one of the twelve.
There's a pattern in who does publish, and it's not flattering. Nearly every company that lists a price is selling into a classroom. Harvard Business Impact publishes per-seat rates. So do Interpretive, MonsoonSIM, Forio, and the campus platforms. Students have to be told what they're paying, so the number goes on the page. The providers who sell exclusively to Fortune 500 L&D, and I'm putting myself in this group, publish nothing. As mentioned earlier, this is likely because every solution is different from the next. All I can do is provide what I’ve heard and passes the, “Ya, that sounds about right” test.
This is a necessity as a business practice. Lousy for buyers, because they have to walk into a budget meeting with a number. The best advice here: Find someone you really trust.
Here’s my best shot and it’s certain to help some and frustrate many.
What the four categories actually run
| Category | Estimated Pricing | Primary Fit |
|---|---|---|
| Off-the-Shelf Business Simulation | ~$168 / seat (100+ seats) | High-volume classroom & foundational learning |
| Tailored Simulation Business Simulation | ~$150K+ | Adapting an existing engine to core company metrics |
| Custom Simulation Business Simulation | ~$350K+ | Rare ground-up builds (almost never actually needed) |
| Business Simulation Facilitation | $25K+ starting | Expert delivery, co-facilitation, and strategic debrief |
Disclaimer: Since pricing isn’t published, this is my best guess based on what others have told me from their experience. I’ve heard higher, rarely lower, and this matches what I would expect from the industry. Are these Simulation Studios prices? I hate to do this: It just depends ☹️. Almost all my work is in the tailored and/or custom space. As a result, the numbers range widely. I’ve done work for free and I’ve done work on the higher side. One thing is for sure: You likely don’t need to spend as much as you think to get a fantastically applied business simulation. Advice: Call around! A provider should be able to get you a ballpark after just a few scoping questions.
What actually moves the number
Everyone assumes it's the graphics. It's almost never the graphics.
It's 1) whether somebody has to write a quantitative model from scratch, 2) how many things you're trying to teach, and 3) who stands in the room.
The core model is a big component. A simulation is a set of equations that dictates the outcome and this MIGHT be where the money goes. If a provider can flex an engine that already works, you're in tailored pricing and it is the best way to go. If they can't, you're in custom, and the gap between those two is the largest single line item in this entire piece. Just make sure you are absolutely certain you really need a custom. In my experience, very very few really do and I do my best to talk them out of it. Seriously, read this article: You Probably Don't Need a Custom Business Simulation.
Objectives are the second one, and it's the one buyers control completely. Three measurable objectives is the ceiling. I've said this so often it's become my one rule: if you can't name three things you're measuring, you don't have a simulation, you have an expensive afternoon. Every objective past three multiplies model complexity, which multiplies build time, which multiplies price and it makes the debrief worse, so you pay more for less. Focus rules the world when it comes to building an effective business simulation. Also, make sure to choose the right vendor. I don’t fit everyone so I wrote an article on how to choose: How To Choose a Business Simulation Provider.
Then facilitation, which is the most negotiable line on the quote and the one nobody negotiates but not in a way you might think and it’s about more than just the money. If your own people can run it, run it. But in my experience, this can lead to a first class disaster. I wrote about this in my book: Shift Using Business Simulations and Serious Games in Corporate Learning (drop me a note and I’ll send you a PDF copy for free). One thing to seriously consider: Co-facilitation! You’ve hired talented facilitators, use them! Caution: Facilitating a Business Simulation takes real skill and experience. BUT, a good and supportive provider should help and ensure your facilitators are protected. This is, far and away, the absolute best facilitation model. No one knows your company better than your internal people. USE THEM!
What to do with all this
Most importantly: Find a provider that fits. Fits your needs from a partner position and financial position. Get the numbers early on. Pro Tip: Providers can get you a number very quickly just by getting basic scope information. If they say they need to talk to the executive sponsor, that’s a MAJOR RED FLAG. Again, see article: How To Choose a Business Simulation Provider. Make sure to ask about pricing, change fees, facilitation fees, licensing fees, travel costs, etc.. But again, find someone you trust!
As a reminder: All of this information is based on insights from others. It may not be perfectly accurate but it’s likely in the ballpark.
Hope this helps!