How to benchmark your operating costs
Last updated June 4, 2026
At a glance
- The effective rate is your true cost after all fees, not the headline rate.
- Compare against organizations of similar size and usage.
- The measured gap becomes a renegotiation target.
Benchmarking compares the true rate you pay, after every surcharge and fee, against what the market charges organizations of similar size. The gap between the two is where the savings live. Without a benchmark, a number that looks normal on the invoice can still be well above market.
See what we would find
The review is independent and risk-free. We work out of the savings we find. If there is nothing to find, there is no fee.
Start with the effective rate
The effective rate is the real per-unit cost after surcharges, fees, and assessments are added in, not the headline rate on the contract.
Two organizations can show the same advertised rate and pay very different effective rates once the add-ons are counted. Calculating the effective rate is the first honest step, because it is the number that can actually be compared.
Compare against the right peer set
A benchmark is only useful when it compares you against organizations of similar size, profile, and usage.
Market rates move with volume and circumstance, so a fair comparison controls for those factors. The output is not an opinion but a measured gap between what you pay and what comparable organizations pay.
Turn the gap into action
Once the gap is measured, it becomes a target you can renegotiate toward or correct against.
A large gap signals room to renegotiate the existing agreement. Anomalies in the line items often signal billing errors to correct. Either way, the benchmark turns a vague sense that costs are high into a specific, defensible number.
Frequently asked questions
What is the effective rate?
It is the true per-unit cost after all surcharges, fees, and assessments are included, not the advertised contract rate.
Where does the market data come from?
From pricing benchmarks for organizations of comparable size, usage, and profile, so the comparison is fair.
What does a large gap mean?
It usually means room to renegotiate the existing agreement, and sometimes a billing error to correct.
Can I benchmark this myself?
You can start by calculating your effective rate. Comparing it against current market data is where an independent review adds the most value.
How is this different from asking for a discount?
A discount is a guess. A benchmark is a measured target, which makes the renegotiation specific and defensible.
See what we would find
The review is independent and risk-free. We work out of the savings we find. If there is nothing to find, there is no fee.