Establish the baseline
Before the RFQ begins, InvestedBuck and the customer establish the relevant baseline spend for the defined scope.
Baseline annual spend: $1,000,000
Pricing
No upfront consulting fee for the buyer. InvestedBuck is compensated by the awarded supplier using a predetermined fee based on the customer’s agreed baseline spend.
How it works
Before the RFQ begins, InvestedBuck and the customer establish the relevant baseline spend for the defined scope.
Baseline annual spend: $1,000,000
InvestedBuck solicits qualified suppliers, including the incumbent when appropriate, and compares the market.
The customer decides which supplier, if any, receives the award. InvestedBuck does not make the final supplier decision.
Your upfront investment
$0
No upfront sourcing consulting fee.
You do not pay InvestedBuck simply to run the sourcing process. Our commercial model is designed to align our compensation with a completed sourcing outcome.
InvestedBuck Success Fee
2.5% of the agreed baseline spend
Example before fee limits
InvestedBuck Success Fee: 2.5% of the agreed baseline spend, subject to a mutually agreed maximum fee and a mutually agreed minimum fee. The rate and fee limits are documented before the sourcing event begins.
Who pays InvestedBuck?
Customer
$0 upfront consulting fee
InvestedBuck
Sources and recommends
Selected supplier
Pays predetermined InvestedBuck fee
Customer control
InvestedBuck will recommend the strongest option based on the criteria established with you. We never select your supplier on your behalf.
Price is only one factor. Quality, capacity, service, lead time, payment terms, risk, logistics, implementation requirements, and other customer-defined criteria can all be considered.
Baseline methodology
The baseline is established and documented before the RFQ begins. It represents the agreed current-state spend for the defined products, services, specifications, and period covered by the sourcing event — and it is what the standard model uses to calculate the InvestedBuck Success Fee.
InvestedBuck does not require ongoing access to the customer’s purchasing system simply to calculate its InvestedBuck Success Fee. Any material change to the scope or baseline should be documented and mutually agreed upon.
Incumbent
That is a successful sourcing outcome if the incumbent provides the best overall value.
InvestedBuck can include the incumbent in the RFQ. If the incumbent wins the award based on the agreed evaluation criteria, you continue the relationship with confidence that the market was tested.
Your authority
InvestedBuck does not force a customer to select a supplier simply because a lower-priced offer was received. You retain final authority to accept or reject a recommendation based on legitimate commercial, operational, quality, capacity, risk, or other agreed criteria.
The customer agreement may include a reasonable cancellation provision if the agreed sourcing work is substantially complete and the project is abandoned or InvestedBuck is circumvented. Specific protection provisions are defined in the applicable agreement.
FAQ
InvestedBuck recommends. You decide.
There is no upfront consulting fee to the customer under the standard InvestedBuck model. InvestedBuck is compensated by the supplier selected for award using a predetermined fee based on the agreed baseline spend.
You do. InvestedBuck recommends the strongest option, but the customer always makes the final supplier decision.
No. Your incumbent can participate in the sourcing process. If they provide the best overall value, they can remain your supplier.
The default InvestedBuck Success Fee is 2.5% of the agreed baseline spend, subject to a mutually agreed maximum fee and a mutually agreed minimum fee. These terms are agreed before the RFQ begins.
Supplier confidentiality and disclosure are managed throughout the sourcing process. The sourcing process can initially present supplier opportunities anonymously so the customer can compare economics objectively. Supplier identity is disclosed when the customer chooses to pursue an offer and is ready for supplier-specific evaluation and due diligence.
No. InvestedBuck recommends. The customer decides.
The customer is not forced to award the business. The sourcing engagement can be concluded without an award, subject to the applicable agreement.
Then the sourcing event has still created value by validating the market and giving the customer evidence that its current pricing and commercial position are competitive.
Give InvestedBuck the baseline. We'll show you what the market says.