Table 2From “What is a buying committee?”
Illustrative financial arithmetic under the stated assumptions
Table 2Illustrative financial arithmetic under the stated assumptions
| Illustrative metric | Baseline inputs | Second-scenario inputs | Difference | Calculation note |
|---|---|---|---|---|
| Wins from 100 opportunities | 18 | 38 | +20 | Assumed inputs |
| No-decisions from 100 opportunities | 68 | 28 | -40 | Assumed inputs |
| Average sales cycle | 195 days | 122 days | -73 days | Assumed inputs |
| Average contract value | \$200,000 | \$228,000 | +\$28,000 | Assumed inputs |
| ARR at stated win count and contract value | \$3,600,000 | \$8,664,000 | +\$5,064,000 | Wins × average contract value |
| First-year incremental gross profit less program cost | Not modeled | \$3,751,200 | Not applicable | (ARR difference × 80% margin) - \$300,000 |
| Valuation arithmetic at assumed 7.5x ARR | \$27,000,000 | \$64,980,000 | +\$37,980,000 | Not a valuation or forecast |
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Source: Table from this essay. Sources and interpretation are given in the article.

From the essay
Go-to-market strategy
What is a buying committee?
A buying committee is the group involved in a B2B purchase decision. Map possible roles, decision rights, concerns and next steps.
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