FIRST STEP: Speak with your client to determine a Savings Benchmark. When tracking spend and savings for clients, it is important that a benchmark rate is determined by what is acceptable for that client.
1. The most common method used by HelmsBriscoe Associates is the New Item Purchase method:
- New Item Purchase: In this method, the first bid of the chosen supplier is used as the benchmark rate. For example, if the quoted rate for meeting space is $2,000.00 and the negotiated price is $1,500.00, the savings is $500.00.
2. Alternate methods used by Procurement and Finance departments include in the following:
- Prior Period Price: In this method, a prior price is used as a benchmark for savings. For example, if a client books annually at the same property, and last year the rate was $200.00, and this year the property was booked for $199.00, the savings would be $1.00 per
NOTE: If you and the client agree to an alternate savings benchmark, the benchmark rate can be entered as the quoted rate in the Revenue Details section.
SECOND STEP: Determine which Revenue Items you will consistently track for the client. With more than 100 revenue items that can be tracked using InForm, it is important to narrow down the top expense categories for your client. This will allow you to provide significant value to your client without becoming an administrative burden. Sleeping rooms, meeting space, and F&B are commonly the three largest expense areas. Others to consider: A/V, Internet, comp rooms, and
NOTE: Consistency in the savings benchmark and revenue items is critical to demonstrate value to the client. Agree with the client what will be tracked and how it will be tracked up-front, so that categories are tracked the same way each time moving forward.
NOTE: For a complete list of all expense categories and revenue items, click here.