1 min lesson
Allocating with SSP
Compare two rows from "Allocating with SSP", then say when each one fits.
Step 1 of 2
Allocating with SSPwhere bundles get interesting
SSP is the price you would charge for an item sold on its own. When a deal bundles a platform subscription with discounted onboarding, you do not honor the line-item prices on the quote. You allocate the total contract price across obligations in proportion to their standalone values, which can move revenue between lines.
- Obligation
- Annual subscription
- List / SSP
- $100,000
- Allocated price
- $92,308
- Pattern
- Ratably over 12 months
- Obligation
- Onboarding (one-off)
- List / SSP
- $20,000
- Allocated price
- $18,462
- Pattern
- On completion
- Obligation
- Contract total
- List / SSP
- $120,000
- Allocated price
- $110,769 + discount
- Pattern
- -
| Obligation | List / SSP | Allocated price | Pattern |
|---|---|---|---|
| Annual subscription | $100,000 | $92,308 | Ratably over 12 months |
| Onboarding (one-off) | $20,000 | $18,462 | On completion |
| Contract total | $120,000 | $110,769 + discount | - |
A $10k bundle discount allocates ~83% to the subscription and ~17% to onboarding by SSP ratio, not where the rep put it on the quote.