Measurable ROI – Infinite
To calculate ROI for our services, consider the fact that our clients do not pay us. We are only paid if there are savings that actually show up in your billing. Then we are paid out of the savings; if there are no savings there is no fee. Since no client money is invested, yet the client receives revenue from our work, the ROI is infinite.
For example, if a client is in the midst of a contract, they have a budgeted amount set for those services based upon the current contract rates. Our work results in reduced costs for the same services, from the same vendor, without a change in technology or process – it is unexpected savings. Alternatively, if a client has received a proposal from its vendor and we are able to negotiate lower pricing than what has been proposed, we have again secured a lower monthly cost than what the client was prepared to spend. The client keeps 70% of the additional savings and we are paid 30%.
If savings exist in your contract, you are already in a shared savings plan today. The difference is that your vendor is keeping 100% of the savings and you are getting 0%. Our fee comes out of what the client would otherwise have paid to their vendor. So if you are prepared to (or already) pay $100 a month for services and we know you should pay $90 – and your staff does not know this – then why would you want to pay 10% more each month for the term of the contract? What is best for the company?