How to calculate Deal Value (Basic starting value for hourly/monthly/subscription/recurring)

growingfast
growingfast Posts: 1
Photogenic
edited November 2022 in Sales CRM #1

I have a variety of projects payment types for my business.

To make it a bit more complicated - some of these projects I close are for hourly contracts that continue sometimes for months or years. (Various hourly rates)

Some of the deals are monthly contracts that go from one month to 6 or 9 months. (various monthly rates)

How can I calculate deal value so I can start getting helpful data? Should I try to calculate - and guess - how long the entire deal will be worth - or should I use a variation?

Maybe this is what the products section is for - and if so - how best to use that?

Just need something to get started so I can get numbers moving through the system and then I can optimize.

Thanks everyone!

Answers

  • Beatriz Antunes
    Beatriz Antunes Moderator Posts: 2 PIPEDRIVE TEAM
    First Comment Photogenic First Anniversary Pipedrive Employee

    Hello!

    Thank you for your question. It is indeed very important to make sure you can calculate your Revenue and to have a Forecasted view of it.

    You can use various features here, I'll explain some of them so you can explore:

    • Recurring Revenue Feature -- This is located on the deal, and in your case, you can use the Payment Schedule possibility. This way you can add the different payments you need your client to pay at different timings.
    • Products -- You can use this feature in many different ways. It is called products but actually our clients use them for services also. In your case, you can use one product for the Hourly Rate you charge your clients.
    • Deal Value -- The deal value should be the total amount of revenue you are expected to gain with that client. To know monthly values use the Recurring Revenue Feature.
    • On the Professional Plan you can then report on the data above: Forecast Report (from deal value and Expected Close Date), Subscription Revenue Report (from Recurring Revenue Feature) and Deal Performance Report (to report on products).

    Hope this information can help! If you need anything else please reply here or ask our Support Team.

    Thank you 😊