In today's economic environment, PA understands the financial constraints placed on businesses of all sizes. In an effort to create a win-win payment structure for PA services, we have adopted a "Gain Share" model.
In procurement, Gain Share is defined as the allocation of achieved procurement cost savings benefits between the client and the service provider. Simply, PA fees are structured on a fixed fee basis for our initial project assessment, plus a tiered percentage of first year savings. The fixed fee up-front is absorbable into the commissionable savings at the end of the project, ultimately negating any out-of-pocket costs for the client.
PA's savings are based on "realized" savings only, the real money that flows to a company's bottom line...and the savings will be contractually guaranteed. We also do not work in a vacuum. Our projects are collaborative and transparent to ensure that both our company, and yours, realize the maximum benefit. We consider all our clients our partners.
Procurement Analytics Gain Share fee structure
- A fixed fee for the initial investigation to conduct an analysis of current spends and rapidly (within one week) determine expected savings, plus a tiered percentage of first year savings as follows:
- First $50,000 - $99,999: 25%
- Next $100,000 - $499,999: 20%
- Next $500,000 - $999,999: 15%
- Over $1 million during first year: 15%
- Second and third year: 10%
- Subsequent years: 0%
- Secured savings means the difference between the unit price to be paid as per the contract that has been negotiated less the unit price paid before the project commenced (the "baseline") multiplied by an agreed annual usage volume.
- All business expenses incurred will be reimbursed at cost.
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