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Blog · Board and management reporting · Education

Renewal price uplift realised against proposed, by institution: the increase that was negotiated away

How an education provider measures what happened to its renewal price increases from the renewal proposals and the signed orders: uplift proposed per institution, uplift realised, the gap by account manager and by institution type, the institutions that renewed at a discount to last year, the correlation with utilisation from the provider's own data, and why the average uplift reported to the board is made of a few full increases and many that were given back.

The short answerA renewal proposal carries a price uplift; the signed order carries what was agreed. Per institution, realised uplift over proposed uplift is the share of the increase that survived negotiation, and per account manager and institution type it shows who holds a price and who gives it back. The institutions that renewed below last year's price are their own list. From the provider's own data, uplift realised correlates with utilisation: an institution using what it bought accepts the increase, and one that does not negotiates, which puts the pricing conversation back a term to the usage one.

An education provider proposes a five percent renewal uplift across the base and reports four percent realised. The renewal proposals against the signed orders show it was seven percent at a third of institutions and nothing at another third, that two account managers gave most of it back, and that the institutions that negotiated hardest were the ones using the programme least. This guide sets out uplift realised against proposed, the splits, and the utilisation link.

The measures

Per institution, per renewal:

Proposed uplift = proposed price ÷ expiring price − 1 Realised uplift = signed price ÷ expiring price − 1 Realisation of uplift = realised ÷ proposed Below last year: signed price < expiring price

Per account manager, per institution type: median realisation; share below last year.

The rows you need

  • Renewal proposals: institution, expiring price, proposed price, date, account manager.
  • Signed orders: institution, signed price, date.
  • Institution master: institution, type, enrolment.
  • Utilisation: institution, active seats over purchased, from the usage export.

Institution identifiers only.

The assertion

every renewal in the period has a proposal and an outcome, or is listed unproposed or unresolved

Unproposed renewals are the process gap: institutions that renewed at last year's price because nobody proposed otherwise.

A worked view

Account manager Renewals Median proposed Median realised Realisation Below last year
AM-04 62 5% 4.8% 96% 1
AM-11 58 5% 1.1% 22% 9
AM-17 44 5% 3.9% 78% 2

Manager AM-11 gives four fifths of every increase back, and nine institutions renewed for less than last year. Similar books; a different conversation at renewal.

By utilisation

Utilisation band Renewals Median realisation of uplift Below last year
Over 80% 71 97% 0
50 to 80% 58 71% 3
Under 50% 35 18% 9

Institutions using what they bought pay the increase. Those that do not negotiate it away, and the pricing conversation is really the utilisation conversation a term earlier.

Where it goes wrong

Average uplift reported. Four percent, made of seven and nothing.

Proposals unrecorded. Only the realised change exists; who gave what back is unknown.

Manager split skipped. The board's four percent and one manager's one.

Utilisation not joined. The discount is blamed on the negotiation, not the adoption.

Every renewal season, realised against proposed

Mapped once, the proposals, the signed orders, the institution master and the utilisation produce realisation of uplift by manager, type and utilisation band, and the below-last-year list every season. Covirage builds this from the exports as they are. The education page describes the setup, and the licence utilisation guide covers the measure that decides the price a term early.

Questions people ask

Where does proposed uplift come from?

The renewal proposal or quote, recorded per institution with the proposed price against the expiring one. Where the provider applies a standard uplift, that is the proposed figure. Without a record of what was proposed, only the realised change can be measured, and that is the first gap to close.

Why by account manager?

Because the board's average uplift of four percent is one manager at seven and another at one, on similar books. The manager who gives the increase back is a coaching finding, or a book that has a reason, and the institution-type split says which.

How is the utilisation correlation used?

As the argument for managing utilisation ahead of the renewal. If institutions above a utilisation threshold realise most of the proposed uplift and those below realise little, the provider's pricing power is its onboarding and adoption, and the success team owns the price increase a term early.