How Spendflo Calculates Savings

Last edited 301 days ago by Jimmy Hallsworth

Savings are categorized into three main branches.

Negotiated Savings: Savings captured from the “First Quote” presented by the supplier to the final accepted order form. This includes, but is not limited to, discounts collected through additional SKU addons, volume discounts, pricing negotiations, tiered ramp of licensing.

Cost Avoidance: Refers to savings generated by preventing or avoiding unnecessary expenditures. This includes but is not limited to, finding alternative SaaS tools, right-sizing license usage, consolidation of tools, demand management.

Contractual Savings: (does not count towards guarantees, these are “soft savings”) Negotiating favorable contract terms, such as extended payment periods, renewal caps, removal of auto-renew language, favorable true-up language.

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Savings Calculations Across Various Scenarios

Savings Calculations Across Various Scenarios

Downgrade

Initiated By Spendflo

FQ= What cx was paying (current ACV) - NQ = New contract ACV

Downgrade

Not Initiated by Spendflo

FQ = Quote which is given to Spendflo by cx - NQ = Negotiated savings

Upgrade

Initiated By Spendflo/ Or not

FQ= What cx will be paying during an upgrade - NQ

Renewal

FQ-NQ

If the price hike is on the FQ then that's where we start not what their current ACV

Net New

FQ-NQ

There are no rows in this table

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Link to the Savings Template can be found

here⁠

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