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Blue Book of Bank Prices™
Pricing Calculator Demo
The Pricing Calculator, in conjunction with the Blue Book of Bank
Prices™, is an aid to assist corporations in benchmarking compensation for cash
management services. For well over a decade Phoenix-Hecht has been collecting
and analyzing thousands of actual bank account analysis statements from
corporations to report on pricing trends. Each year, the Blue Book of Bank
Prices™ publication is compiled from actual bank account analysis statements
for the month of March submitted by participating companies.
To better understand what factors affect pricing that corporations
pay for bank services, Phoenix-Hecht performed extensive linear regression
analysis on each of the services included in the Blue Book of Bank Prices™. The
analysis measured the quantitative effect, and the significance of that effect,
on pricing for factors that could potentially affect price. The results of this
work have been incorporated into the Pricing Calculator. (For discussion on
methodology see the white paper
"Determinants of Bank Prices").
The Pricing Calculator provides an expected range of prices
for a service given the volume purchased, the total monthly fees paid to the
provider, and the corporation's region. This price range is calculated using
regression analysis performed on actual prices paid from the current
Blue Book of Bank Prices™ publication. While the price range calculated
is usually dependent upon all three of these factors, the degree of impact
varies by service.
This demo calculates expected pricing for account analysis line
items in the Lockbox Services category. The Calculator is especially valuable
in determining expected pricing for volume levels not depicted in the Blue Book
of Bank Prices™ tables.
Here is a sample table from the Blue Book, which illustrates how
prices vary with volume. The table shows price ranges for monthly wholesale
lockbox item volumes between 50 and 7,500. At each volume level, the four
divisions on the vertical bar represent the price ranges in each quartile of
prices. Additional adjustments in price ranges may be made based on the
corporation's geographic location, and on the amount of monthly fees paid by
the corporation to the bank service provider.
Prior to using the Calculator you should familiarize yourself with
the Blue Book of Bank
Prices™ publication and Blue
Book Executive Summary.
Try the Pricing Calculator Demo
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