The ‘Annual Saving’ is arrived at by calculating the difference in a business’ annual cost per head using the traditional process and using the Liberty Flexible Workspaces cost per head solution.
We calculate the ‘traditional annual cost per head’ as follows:
- We calculate the ‘space required’ to inform set up costs and occupational costs
- We calculate ‘set up costs’
- We divide the ‘total set up costs’ by the number of months in the lease
- We divide that by the number of people, and multiply by 12 to arrive at an ‘annual set up cost per head’
- We then divide that by 12 to get a ‘set up monthly cost per head’
- We also add up all the annual occupational costs and divide by the number of people to arrive at an ‘annual occupational cost per head’
- The ‘annual occupational cost per head’ is divided by 12 to reach an ‘occupational monthly cost per head’
- We add together the ‘set up monthly cost per head’ with the ‘occupational monthly cost per head’ to a subtotal ‘total monthly cost per head’
- We multiply this ‘total monthly cost per head’ by the number of people to calculate a ‘total monthly cost’
- We multiply the ‘total monthly cost’ total by 12 to arrive at a ‘traditional’ Total Annual Cost
The Liberty costs are calculated by multiplying the cost of licensing a workstation per month by the number of workstations required and adding the number of hours meeting rooms are used per month by an hourly rate.
This monthly amount is multiplied by 12 to give a Liberty ‘total annual cost’.
The variance is the difference between the two totals.