Our Methodology: How SpendHound Powers SaaS Vendor Intelligence and Pricing Benchmarks
Transparent, real-company data drives SpendHound’s SaaS vendor intelligence and pricing benchmarks. This page explains exactly how we collect, process, and protect that data as well as how our two distinct methodologies work.
Two Types of SaaS Pricing Data
SpendHound provides two complementary types of SaaS pricing data:
Vendor Intelligence (Spend Insights)
Product SKU-Level Pricing Benchmarks
Both are built using real company data. Neither relies on public list prices, vendor marketing materials, or anonymous surveys.
However, they use different data sources and serve different use cases. Understanding the distinction ensures the data is interpreted correctly.
What question this data answers
How much do companies typically spend with this vendor?
Are we paying a fair price for this product/service?
Best used for
Vendor evaluation and budgeting
Price validation and negotiation
Primary data source
ERP transaction data
Contracts & invoices
Level of detail
Vendor-level spend
SKU / product-level pricing
Data precision
Directional
SKU-level precision
Where this data shows up
SpendHound platform, Public vendor pages
SpendHound platform benchmarks
You can explore Vendor Intelligence and spend insights in our Marketplace.
Vendor Intelligence Methodology
Vendor Intelligence powers the SpendHound platform and the public vendor pricing pages available in the SpendHound Marketplace which provide spend insights from 1,000+ participating companies.
These insights show how much companies typically spend with a given vendor, based on aggregated transaction data.
Data Sources
SpendHound’s Vendor Intelligence data is derived from ERP transaction data shared by companies that connect their financial systems to SpendHound.
Supported systems include platforms such as:
NetSuite
QuickBooks
Sage Intacct
Other ERP and accounting systems
Companies authorize secure access through our platform. We analyze recorded vendor payments and historical spend activity directly from these systems.
We do not use:
Public list prices
Survey responses
Modeled or estimated pricing
All insights are based on actual recorded vendor spend.
What Data We Analyze
From ERP systems, we analyze:
Vendor name
Transaction amounts
Transaction dates
Payment frequency
Total annual vendor spend
We do not analyze contract documents, SKU-level pricing, renewal clauses, or negotiated discount structures as part of Vendor Intelligence. This data reflects aggregated vendor spend, not per-seat or per-product pricing.
Data Processing & Normalization
ERP data requires standardization before aggregation.
Our processing includes:
Vendor Normalization
Standardizing naming variations (e.g., parent entities, billing subsidiaries).
Deduplication & Validation
Removing duplicate entries and validating transaction consistency.
Categorization
Classifying vendors into relevant SaaS categories.
Aggregation
Combining de-identified company data into grouped insights by vendor and company size.
We publish only aggregated outputs. Raw transaction-level data is never displayed.
How Vendor Intelligence Is Used
SpendHound’s Vendor Intelligence is best suited for:
Evaluating overall vendor cost positioning
Comparing vendors at a high level
Budget planning for new tools
Identifying whether deeper pricing analysis may be warranted
Because they reflect total vendor spend rather than contract-level pricing, these insights provide directional market context.
SaaS Vendor Pricing Benchmark Methodology
Pricing Benchmarks are a separate dataset used within the SpendHound platform to help companies evaluate specific SaaS contracts.
These benchmarks are built from verified contracts and invoices shared by 1,000+ participating companies.
Data Sources
Pricing Benchmarks are derived from:
Executed SaaS contracts
Vendor invoices
Companies voluntarily share documentation in exchange for personalized benchmarking insights.
We do not use vendor list pricing or unverified pricing estimates.
Data Extraction & Verification
From contracts and invoices, we extract structured pricing data such as:
Product tier or SKU
Per-seat pricing
Contract value
Term length
Renewal pricing
Volume metrics
Discount levels
Each pricing data point is derived directly from source documentation before inclusion.
Benchmark Calculations
For each vendor and segment, we calculate:
Median pricing
Unit pricing percentile ranges
Pricing trends
Benchmarking cohorts are based on contract value, volume, and recency. Outliers are removed when they materially distort reliability.
How Pricing Benchmarks Are Used
Pricing Benchmarks are best suited for:
SKU-level price validation
Assessing whether a quoted price is above or below market norms
Renewal evaluation
Contract negotiation
These insights offer contract-level precision beyond aggregated spend data.
Data Privacy & Protection
We safeguard participating company data through strict privacy controls, de-identification, and enterprise-grade security.
De-Identification
All company data is de-identified before being included in aggregated datasets.
Identifying company information is removed prior to aggregation and public display.
We never publish individual company pricing, contracts, or transaction records.
Aggregated Reporting
Both Vendor Intelligence and Pricing Benchmarks are presented as aggregated insights derived from 1,000+ participating companies.
Vendor Intelligence reflects aggregated vendor-level spend and payment activity across companies. Pricing Benchmarks reflect aggregated contract-level pricing metrics such as medians and percentile ranges.
Insights are displayed only when sufficient data exists to protect company confidentiality and ensure reliability. We do not publish raw transactions, contracts, or identifiable company-level data.
Security Infrastructure
All data is encrypted in transit and at rest. Access is restricted to authorized personnel, and system access is logged and audited. SpendHound maintains SOC 2 compliance and undergoes regular third-party audits to ensure our security controls meet rigorous industry standards.
For additional information, see our Trust & Security Documentation.
Data Recency & Updates
Vendor Intelligence and Pricing Benchmarks are refreshed on a recurring basis as new data becomes available.
Publicly available Vendor Marketplace pages include a “Last Updated” date to indicate data freshness.
As our dataset grows, trend indicators may reflect broader shifts in vendor spend and pricing over time.
Limitations & Considerations
While we prioritize accuracy and transparency, certain limitations exist:
Sample Representation
Data reflects companies that choose to connect financial systems or share contracts. It does not represent every company using a vendor.
Spend vs. Unit Pricing
Vendor Intelligence reflects total vendor spend and payment activity, not contract structure, pricing tiers, or negotiated discount terms. Differences in product tiers, usage levels, or bundled agreements may affect comparisons. Pricing Benchmarks are available in the SpendHound platform and provide more detailed information based on product tiers, usage levels, and peer comparisons.
Enterprise Complexity
Large enterprise agreements may include custom pricing structures that differ from typical contracts.
Regional Differences
Pricing and spend patterns may vary by geography depending on dataset concentration.
We continuously expand coverage and refine our methodology to improve representativeness and reliability.
Choosing the Right Data
Use Vendor Intelligence when you want to:
Evaluate vendor cost positioning
Compare vendors at a market level
Inform budgeting decisions
Use Pricing Benchmarks when you want to:
Validate contract pricing
Assess SKU-level fairness
Negotiate renewals
Together, these methodologies provide a comprehensive view of vendor pricing — from high-level market visibility to contract-level validation.
