Price Benchmarking helps you understand if your are paying the right price so that you can make the right sourcing decision.
Price Benchmarking can be a valuable tool throughout the sourcing lifecycle. When used appropriately it can support decision making, such as insource/outsource, extend a managed services contract and negotiations.
Price Benchmarking examines if your Service fee is competitive in the market place – for equivalent services. It can be used to assess costs of your current externally provided Managed Services against the market. It can also be used to assess the cost of services provided with internal staff against the market.
Cherub's Price Benchmarking methodology selects a Peer Group of enterprises from our database of current contracts and calculates a projected service fee based on our client’s workload.
We simulate our client’s workload for each of the Peer entities using the Peer’s contract service fees per work unit item. The workload measures vary from Service Tower to Service Tower and within each Tower there can of course be multiple measures.