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Tools Worksheet
Market-share commitment worksheet
Enter one share commitment: the category, what you bought from the supplier, and the share you committed to. You get the share today, the purchasing that would need to move, and the rebate the shortfall is holding.
Every field starts empty. To see how the worksheet reads a contract, load a fictional one.
Illustrative contract, synthetic numbers. A fictional Supplier B asks for 80% of a $2,000,000 knee implant category. $1,400,000 of it was bought from Supplier B this period, and a $56,000 rebate is paid only if the commitment is met.
These started as the illustrative contract and have been edited. The figures use your changes.
Your three figures
Each needs different work, so they stay on separate lines and are never added together.
Share today
To see this figure, add the category spend, the supplier’s spend and the committed share.
How this is calculated
- Share = spend with this supplier ÷ category spend with every supplier.
- Then the difference from the committed share, in points.
Purchasing that would need to shift
To see this figure, add the category spend, the supplier’s spend and the committed share.
How this is calculated
- Needed: committed share × category spend.
- Shift: needed minus this supplier’s spend, moved from other suppliers so the market stays the same size.
Rebate held by the shortfall
To see this figure, add the category spend, the supplier’s spend and the committed share.
How this is calculated
- Below the commitment, the rebate that depends on it is held in full. At or above it, nothing is held.
Two readings to distrust on sight
The worksheet warns about both. Each one makes the share say nothing about your purchasing.
- A share of exactly 100%
- A market equal to the supplier’s own spend usually holds only that supplier’s products. The share reads 100% whatever you buy, so the commitment can never fail and the rebate behind it pays unconditionally.
- A market far too wide
- When the market is at least 20 times the supplier’s spend and the share is under a third of the commitment, the market is probably scoped one level too broad, such as a whole spend category where the agreement names one product class. The commitment can then never be met.
What this worksheet leaves out
Enter what it can take. Read the clause for the rest.
- Share measured in units rather than dollars. The fraction works the same way, but these fields are in dollars.
- Ladders where the rebate rate steps with the share, rather than one commitment gating one rebate.
- Commitments measured hospital by hospital, either-or and any-two-of-three commitments, and targets that ratchet up each agreement year.
- Price reversion, clawbacks and cure periods. The consequence clause decides those.
- Which products belong in the market. That is the definition in your agreement; the two warnings only catch the common extremes.
How Rebate Recovery does it
In Rebate Recovery each share commitment states its own market: a product class, a spend category, or a list matched on part number. The same definition is applied to both halves of the fraction.
Two alerts flag the extremes this worksheet warns about: a market that holds only the supplier’s own products, and a market too wide for the commitment ever to pass. Alerts are rules and arithmetic, and they show on the contract they concern. The inbox that groups them across contracts is released to administrators first, as is the Recovery Center, whose what-if moves competitor purchases to the supplier and recalculates the share and the tier together.
Run this commitment against your purchases
Bring it to a working session and we load it as written: the market it names, the commitment and the rebate it gates, checked against your purchase data from every supplier in the category.