Solved

Benchmark Score System Needed

Posted on 2016-10-31
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Last Modified: 2016-11-01
We subsribe to a third party vendor service that looks at our pricing for individual products and benchmarks to pricing that other members of this same service.
When they return out data, this give us the Benchmark Low and High and also 25th, median and 75th percentile.

I am trying to come up with a scoring system that I can use for each item.  For example,  My first item has a price of $2.56.  Our benchmaking service indicates that the low price paid by all of its memebers is $2.08.  Median is $2.64.  So our price falls between low and median - being closer to the median.

I would like to come up with a scoring formula that would rate each of our prices on a scale of 0-100 (100 being worst price or same as highest benchmark price).  

Any ideas?  Does EXCEL score at all???  
Thanks for your help!!!
Score-Needed.xlsx
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Question by:vpopper
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Accepted Solution

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ioane earned 500 total points
ID: 41868037
Hi vopper,

I don't think this is an Excel solution as such. More a math problem.

I have applied a score to your sheet. Score calculates where your price sits within the benchmark as a percentage. (Maximum of 100% so anything over Benchmark max price is capped at 100%.)

Calculation also adjusts for skewness based on difference to mean.
Score-Needed--Solved-.xlsx
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Author Comment

by:vpopper
ID: 41868672
Hi ioane,

So far I really like this.  Is there anyway to modify the formula to exclude benchmark low and benchmark high?  If you notice, the low will always be equal to the 25th percentile and the high will always equal the 75th percentile.

Thanks
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Author Comment

by:vpopper
ID: 41868682
Disregard - I see you used low, median and high...great!  Thanks!!!
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Author Closing Comment

by:vpopper
ID: 41868686
Great job ioane!  Thanks again
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