Opportunity Pricing Participant Guide

vILT Module
Lesson 3 - Opportunity Pricing

WBLs
The Essentials of Opportunity Pricing
This course will help you prepare for the key changes associated with
Pricing as a result of Mercury. It will also help you learn the benefits of
the new pricing process.

Videos
How to Create a Pricing Plan using M-Path
The following scenario shows How to Create a Pricing Plan
using M-Path.

Sites
Moving to Mercury
The Global Mercury information resource is designed for non-deployed
audiences. Once local Mercury sites are established, those sites
become the primary information hub for deploying and deployed
audiences. Moving to Mercury also contains globally-applicable
technical messaging, when appropriate, for Mercury-related topics,
such as cutover and coexistence.

M-Path Guidance
The reference resource is for using the guided M-Path tool. Includes
valuable overview material, demonstrations, references, local
guidance links and more.
Simulations
Creating a Pricing Plan
This simulation will help you navigate through some of the most complex
tasks in the Mercury Pricing tool by guiding you through the tool with
instructions on how to complete each step. Topics covered include:
Leveraging GDS resources, using the scenario comparison tool, setting up a
contingent fee engagement, comparing a fixed vs. margin-based pricing plan
as well as creating and using a rate card. The simulation also gives a general
overview of the pricing tool tabs and features to improve your understanding
of the tool's overall functionality.

Procedural Guides
Procedural Guide_Pricing and Budgeting
This Procedural Guide covers the following topics:
 Overview of Opportunity Pricing
 Detailed Pricing Workbook
 Create New Sub-Plan
 Approve or Complete Pricing Plan
 Create and Maintain Rate Cards
Introduction to pricing

In pricing, we estimate the fee, also known as the “Sold-At” amount, that we will bill a client.

0
Create
1 opportunity
Create/Maintain
contacts
2
Perform
acceptance
Selling an opportunity

Create
pricing 3
plan

4
“SOW” signoff Update
and contract pricing plan
5

6
Create
Update engagement
opportunity 7
details
Planning an engagement

8
9 Create
Send engagement budget
resource request

10
Charge T&E
Schedule
resources
11
Delivering an engagement

Schedule/
12
14 Perform billing Perform
engagement
13 economics

Dunning and
collections Close
engagement
15
More on labor fee types

Fixed fee

 Use this when you need to generate a fixed fee.

 Changing the staffing mix is the only option available to you for optimizing your
margin. You can assess how you can do this by modeling different mixes within the
engagement team.
 If you select Fixed Fee in the workbook, you must enter a value in the fee cell.

Contingency fee

 Use contingency fees for performance bonus structure models, where bonuses are
paid when certain criteria are met.
 You can select resources based on the margin required to deliver the opportunity
using NSR and not the contingent fee.
 If you select Contingency Fee, you must enter:
 Contingency amount or
 Sales price and contingency percentage (to calculate the contingency amount)
 Additionally, capture the confidence level — in percentage — of winning the
contingency fee.

Margin-based fee

 Use this when an internally agreed margin is required, or expected, for an

opportunity or engagement. Local leadership will set the margin percentage rate.
 Calculate the “sold at” amount by modeling engagement team resources that most
effectively hit that margin rate and are of the right caliber to deliver service quality.
 If you select Margin-Based Fee, you must enter a percentage in the margin
percentage cell.
 Mercury calculates the amount the fixed fee must be in order to obtain the desired
margin percentage.

Rate card fee

 There are two rate card options available to you.

 You can use a rate card that has already been agreed upon with the client to
estimate your “sold at” amount, or you can model your rate card.
Tech fee tab

Tech fee tab*

 Allows you to reflect appropriate technology costs and fees in your price plan.
 Associated with your service offerings and often referred to as “uplift.”
 Automatically associated with the resources as time is incurred.
 Failure to include them negatively impacts margin.
 If your pricing plan covers more than one service offering, you will need to select
and insert each service offering separately.
 Not all service codes have technology charges. Only the service offerings that
include a tech fee and/or cost are listed in the search dialog.

*Future functionality for client technology charges is currently in pilot