Percentage price savings the client obtains by purchasing a product or service from the organization and the average price that they would otherwise pay for a similar product or service in the local market.
Client Savings Premium (PI1748)
Calculation:
- Reporting Format Decimal
- Metric Type Metric
- Metric Level Product/Service, Organization
- IRIS Metric Citation IRIS, 2021. Producer Price Premium (PI1568). v5.2.
Footnote
This metric is intended to capture the price discount or savings to a client of purchasing the organization’s products or services rather than a similar product or service. For example, if the organization's product costs USD 5 and the average price for a similar product is USD 10 in the local market, this would be calculated as: (USD 10 – USD 5) / USD 10 = 50% savings. Positive numbers can be interpreted as savings to the consumer (client). In this calculation, organizations should use prices as of the end of the reporting period. In specific contexts, and based on evidence, this metric can serve as a proxy indicator of whether the outcome being sought by an investor or organization is occurring (the WHAT dimension of impact). For more on the alignment of IRIS metrics to the five dimensions of impact, see IRIS+ and the Five Dimensions of Impact (https://iris.thegiin.org/document/iris-and-the-five-dimensions/). No single metric is sufficient to understand an impact; rather, metrics are selected as a set across all dimensions of impact. When possible, the selection of metrics to measure and describe the five dimensions should be based on best practice and evidence.
Usage Guidance
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This metric is intended to capture the price discount/savings as a percentage compared to a similar product/service. For example, if the organization's product costs $5 and the average price for a similar product is $10 in the local market, this would be calculated as: ($10$5)/ $10 = 0.5 or 50% savings. Positive numbers can be interpreted as savings to the consumer (client). Organizations should report these prices as of the end of the reporting period.
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This metric is multi-dimensional with regard to the five dimensions of impact. In some contexts, this metric can serve as an indicator of whether the outcome being sought by an investor or organization is occurring (the WHAT dimension of impact). It may also help measure the HOW MUCH Scale dimension, which helps estimate the number of the targeted stakeholders experiencing the outcome. For more on the alignment of IRIS metrics to the five dimensions of impact, see IRIS+ and the Five Dimensions of Impact (https://iris.thegiin.org/document/iris-and-the-five-dimensions/). No single metric is sufficient to understand an impact; rather, metrics are selected as a set across all dimensions of impact. When possible, the selection of metrics to measure and describe the five dimensions should be based on best practice and evidence.
Impact Categories & Themes
Cross Category
Metrics identified as "cross-category" are those that are relevant to any IRIS+ Impact Category or Impact Theme (i.e., these metrics are not specific to any particular industry/category or theme).
SDG Goals & Targets
No Poverty
- SDG Target 1.5
- SDG Target 1.4
Zero Hunger
- SDG Target 2.1
- SDG Target 2.2
- SDG Target 2.3
- SDG Target 2.4
Good Health and Well-being
- SDG Target 3.1
- SDG Target 3.2
- SDG Target 3.3
- SDG Target 3.4
- SDG Target 3.5
- SDG Target 3.7
- SDG Target 3.8
- SDG Target 3.9
Gender Equality
- SDG Target 5.6
Clean Water and Sanitation
- SDG Target 6.1
- SDG Target 6.2
- SDG Target 6.3
- SDG Target 6.4
Affordable and Clean Energy
- SDG Target 7.1
- SDG Target 7.2
- SDG Target 7.3
Decent Work and Economic Growth
- SDG Target 8.1
- SDG Target 8.2
- SDG Target 8.3
- SDG Target 8.4
- SDG Target 8.10
Industry, Innovation and Infrastructure
- SDG Target 9.1
- SDG Target 9.3
- SDG Target 9.4
Reduced Inequality
- SDG Target 10.1
- SDG Target 10.2
- SDG Target 10.3
- SDG Target 10.c
Sustainable Cities and Communities
- SDG Target 11.1
- SDG Target 11.2
- SDG Target 11.3
- SDG Target 11.5
- SDG Target 11.6
Responsible Consumption and Production
- SDG Target 12.2
- SDG Target 12.3
- SDG Target 12.4
Metric History
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June 2022 - IRIS v5.3 Released (current version)
Immaterial change. Minor revisions to definition and usage guidance for clarity.
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May 2021 - IRIS v5.2 Released
Immaterial change. Minor revision to calculation and usage guidance language for clarity.
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January 2020 - IRIS v5.1 Released
No change.
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May 2019 - IRIS v5.0 Released
Immaterial change. Formula and usage guidance slightly updated to clarify and simplify calculation. No material changes to formula.
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March 2016 - IRIS v4.0 Released
Immaterial change. Minor revision to definition language for clarity.
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March 2014 - IRIS v3.0 Released
New metric. Client Savings Premium (PI1748) was developed via the IRIS Taxonomy Group.