Transcript
Jake Shubert (00:36) yes, Sam. I’m going to let them in.
Glenda Mack (00:39) Okay.
Jake Shubert (00:48) Hey, Andrew. Hey, Tom.
Andrew Harnish (00:53) Good afternoon.
Jake Shubert (00:55) Yeah. How’s it going?
Andrew Harnish (00:57) Good, good. We are about 30 hours into our paylocity transition. So we’re officially on the other side and it wasn’t as much of a nightmare. Well, HR is still working hard, but I thought it went pretty smooth on my side, so.
Jake Shubert (01:12) That’s awesome. I can just tell the stress is just going to be on your shoulders. It’s just, I can sense the peace. No, I am genuinely glad that it wasn’t as, you know, sometimes implementations and that kind of big shift can be a lot of work. So, I’m sure it was a ton of work but I’m happy that it’s going really well.
Andrew Harnish (01:31) Yeah, always, I use the term a lot of creases to iron out yet, but we know what we’re doing and people are using it. So that’s what counts.
Jake Shubert (01:40) Yeah, that makes sense. Works for me because I’m terrible at ironing shirts. So… cool, we can jump right into things for today’s. Call. I believe what we wanted to do on today’s, call Nicole. My manager might not be able to attend because she is sick today. So if she’s not on the call, that’s why just letting you know, but what we want to do today was just jump right into our pricing updates.
Jake Shubert (02:05) We wanted to get transparently like a lot more aggressive on our side to try to make sure that this is a good fit for you. So we’re going to jump right into our pricing updates. On our end, we’re pretty excited to put this in front of you and definitely looking forward to your feedback. So I will share my screen. Can you guys see this okay?
Glenda Mack (02:23) Yes. Okay.
Jake Shubert (02:24) Perfect. So, like I mentioned, we got a lot more aggressive on pricing. There are no scoping changes obviously. So the scope of work is exactly the same. So I’ll just briefly flash that up but we won’t spend too much time on that, but we have upped this proposal and what you’ll see today is a 62 percent discount for us and it is right in line Glenda with what you shared during our last call in terms of making sure that the medallion price plus the half fte is less than what you guys are currently spending today, and we think we’ve hit that here. So excited to share it. But any questions before we jump into the proposal?
Glenda Mack (03:02) Jake, did you get the email I sent you? Oh,
Jake Shubert (03:05) I don’t think I did. Sorry. What was the email regarding?
Glenda Mack (03:11) I just sent you some of the other. I just so you had a sense of the prices that we were being offered. I sent you kind of an average for what we’ve had on the table already for credentialing software and.
Jake Shubert (03:25) Was that sent today or was that sent previously?
Glenda Mack (03:28) I want to say Monday, I’m trying to find it. Hold on just a second. And I think Sam, I copied you too. Let me make sure I sent it since nobody seems to know.
Jake Shubert (03:43) Yeah, if you don’t mind, I do try to check my spam folders and things pretty frequently. So, I definitely didn’t see it come through.
Glenda Mack (03:52) I sent it on Tuesday morning at nine eight a M.
Jake Shubert (03:55) Okay. And sorry to like be this tedious, but do you mind sharing the email address that you used?
Glenda Mack (04:02) Gmac at westongroupinc. Com?
Jake Shubert (04:04) Sorry for me, like my email address.
Glenda Mack (04:07) Oh, I’m sorry, hold on a second. I’ll tell you.
Glenda Mack (04:16) Well, if it’ll open, I will tell you.
Samantha Bouchard (04:26) Yeah, I’m not seeing it in my inbox, either, Jake. So that’s strange if it would go.
Glenda Mack (04:31) So, I can see Sam’s it went to samanthabouchard… at medallion. Co, Samantha dawkins went to Jake schubert at medallion co.
Jake Shubert (04:48) Yeah. Well, I’m not sure what, the reason why it wouldn’t send is. Yeah, I guess, would you mind maybe screen sharing the email or if you want to try to resend it right now, we can check to see if it comes through during this call today?
Glenda Mack (05:03) Okay. I can screen share because if you don’t have it already, I don’t know why being on this call would give it to you? Yeah.
Glenda Mack (05:24) Hold on a second. It’s not sharing it’s. Sharing the invite instead of the email. Hold on. Let me close this?
Glenda Mack (05:40) What is it doing?
Jake Shubert (05:42) Oh, here we go.
Jake Shubert (05:55) Okay. I’m seeing this email now. Thank you.
Glenda Mack (05:57) Okay.
Jake Shubert (05:59) Okay. So transparently, obviously, we did not have this email before today’s. Call. So I can share what we did get on our side and sort of talk through that and then get your feedback from there. And obviously, if there’s more iteration we want to do, happy to work on that on our side as well. Okay. Yeah, but apologies on our side for, I’m not sure maybe now that we’re the ones with, the it blockade, I’m not really sure what’s behind that, but maybe, we flipped roles here. But cool. So let me jump into things and pull back up the deck that I was sharing. Okay?
Jake Shubert (06:40) Okay. Here we go. Can you see this? Can you see this again? Yes. Okay, perfect. So again, scope of work remains the same. So I won’t spend too much time, on this slide here. So this is just based off of the scoping questionnaire you guys provided, but any questions, on the actual overall scope? Okay, cool. So if you remember our pricing last time we were in like the 180 to 200 K range per year. So we’ve dropped that down. So year one does include the implementation fee, Glenda, which is that 15,000 dollar implementation fee. Our year one cost is about 125 K. I’ll share this deck with you over email, but you can see that the unit discounts over here on the right. And then moving forward when we take out that 15 K per year cost, year two drops down to about 119. And this is with you guys adding about 75 providers per year. We can always get more conservative on scope if you want to reduce these numbers to reduce the cost. But that’s just based off the 75 provider growth model. And then same thing in year three, another 75 providers on top of that. So adding about 150 over a three year span, takes us quote back up to about 128. So we did model the numbers out and we’re pretty confident it would be less than the cost of what you’re paying today for, your three person team, even factoring in, the half time employee to manage medallion. But yeah, Glenda. I guess obviously, you shared the email now on the call today, but sort of curious for your feedback that we were able to cut the price by about, you know, 60 70 K per year.
Glenda Mack (08:15) Yeah. I mean, I appreciate it, no, no doubt. But you’re still talking about three times what, we’ve been quoted by other software platforms. So, I think that you have, a superior product in a few ways. Some of it’s mostly some of it’s just about the same as everybody else has. But then there’s a few things that certainly are a little bit better, but I can’t I don’t know that I can justify spending triple the cost when the other platform is going to get me down to a half or one employee as well. And it’s going to be around 50,000 a year if not less. Yeah.
Jake Shubert (08:55) I mean, I definitely appreciate that feedback. Are you able to share? Like what are the platforms you would be looking at outside of medallion then?
Glenda Mack (09:03) I mean, you probably know them, but I’m not comfortable sharing because now I’ve given you some pricing information and then you’ll be able to tie it back. Yeah. So one of our ndas is not to disclose that kind of stuff. So I wouldn’t do it to you and I certainly won’t do it to them. Yeah.
Jake Shubert (09:18) 100 percent. I was only asking the question just because for the competitors that we typically run up against who are in the price points with which you’ve shared again, I think I have a decent idea of who those folks might be.
Jake Shubert (09:31) They are typically… like, they’re definitely good platforms, but they still follow a self serve model. So you guys would not be working off of spreadsheets. You guys would be moving to a provider data management tool, which would definitely be a big and needed evolution for Weston. But it would still be your team who needs to do the work of sending all the enrollments out, filling out those pieces, and the data will be tracked inside of the provider data management tool, but it would still be work from your team. So those systems around those price points typically aren’t about fte reduction. They’re more about just like process tracking, visibility, reporting and moving off of spreadsheets. So, I guess that’s the question I more have was like, what are they sharing in terms of confidence to be able to reduce your internal team count? Yeah.
Glenda Mack (10:22) What’s estimated is we would need one to one and a half from what I can tell from the proposal is from our side one to one and a half people. But even if I say we have two people added in here, it’s still a… difficult sell. I’ll just say that because I’ve got one that’s 3,001 that’s 4,000 a month. And then if I add one and a half people on top of that, I’m still not hitting the one 30 mark.
Jake Shubert (10:55) Yeah. So we would look at, you know, three to 4,000 dollars a month. We’re looking at, you know, around 40 K per year, you know, take the average that you guys would be spending, you add, you know, one and a half employees on top of that, I think that would still be pretty close to the pricing we’re sharing here of about like 120,000. So I think the pricing would be on par there, I think the other component.
Glenda Mack (11:19) But you still would have to add the employee to this.
Jake Shubert (11:22) Yeah. The half employee. Yeah, which is I did model that out on the site and there’s a lot of numbers here. But we tried to model out like your internal costs versus the medallion year over year costs. Yeah. I guess the other thing would be with these self serve tools. They… don’t manage the process end to end. So they don’t have any insight or control over turnaround time. So when we talk about turnaround time improvement and revenue acceleration, that’s the other piece here where medallion, we’re actually doing the process end to end. So we have the turnaround times that we can speak to. So it’s taking the work off of your team’s plate as well as the controllable revenue acceleration. Those would be kind of the core value drivers compared to a self serving provider data management tool.
Samantha Bouchard (12:10) Yeah. And Jake, I would just add too Glenda. As you’re looking at the growth, year over year, what we found. And when some of our customers come to us from a self serve tool, is that one they weren’t able to reduce to the fte count that they originally intended. And then as they’re growing, they’re still having that need to add additional ftes.
Samantha Bouchard (12:35) And so if you look at Jake’s analysis here, right? Like that fte really stays steady with your growth. So that’s just something to consider as well. Okay?
Jake Shubert (12:54) Any thoughts or feedback on sort of the counterpoints we’ve shared here?
Glenda Mack (13:01) There’s a lot of assumptions built in. I just need to sit and look at it across and compare the, I mean, it’s not that I don’t trust you but I need to be able to see it and go back and look at what the other proposals offer and don’t offer and what we’re going to have to do.
Jake Shubert (13:17) Yeah.
Glenda Mack (13:18) But I know that when my conversation was that we could get down to one person, maybe one and a half at most, so.
Samantha Bouchard (13:29) Yeah.
Jake Shubert (13:30) I totally hear that. I guess the only other thing is on our side because I know you mentioned there’s a lot of assumptions baked in and I definitely hear that just want to offer this up.
Jake Shubert (13:39) Would it be if we’re able to coordinate it? Would it be helpful to have like a reference call with one of our clients? So we can talk about, you know, obviously without me, Sam or anyone on our team on the call, but you can just talk with a customer about some of these assumptions and their experience with medallion. Would that be beneficial or is that not something you’d be interested in?
Glenda Mack (13:57) Yeah. I would love to do that. I, you know, I’m enamored with your product. I’m not enamored with the cost and so I need to see if the cost would justify the product.
Jake Shubert (14:10) Yeah. Okay. So we can, I can work on a reference call and see if that’s something that’s possible here. I’m trying to think of any other next steps that would be helpful, but, I guess, you know, I don’t want to take up like too much more of y’all’s time with an evaluation cycle because you guys, I mean, you’ve been extremely generous with it. I know you’re trying to move quickly. You have other things going on with the paylocity implementation. So I can check, on the reference call. Is there anything else just in terms of like things that me and Sam can provide, whether it’s just async over email or another follow up call that would be helpful for you guys. Okay. Yeah. Is there anything else that comes to mind? I,
Glenda Mack (14:50) don’t think so. But if I could talk to someone who’s recently implemented, that would be willing to have that conversation with me, that would be great.
Jake Shubert (14:58) Okay. I can try to work on that. I think my only ask would be if we set the reference call up just that we can have a touch base afterwards.
Glenda Mack (15:06) Absolutely. Yeah.
Jake Shubert (15:07) Yeah, that would be our only ask on our side. So Nicole is obviously sick and out today. So I have to just get her approval on the reference call piece because I don’t control that lever. So I can ask internally if I get the thumbs up on that and we get approval on that. What I’ll do is I will probably reach out to you, Glenda directly just for your availability. And then I’ll reach out to the reference folks, figure out the mutual time. I would then just send an email introducing the two of you and then I’ll step away and let you guys coordinate the conversation.
Glenda Mack (15:38) Great. No, I really appreciate that.
Jake Shubert (15:40) Yeah, definitely. I think that’s the only thing else that’s on our side. I can share this deck with you over email. So you do have that, yeah, and Sam, anything else that we’re missing that’d be helpful to cover?
Samantha Bouchard (15:57) I don’t think so.
Jake Shubert (15:59) Okay, great. Well, Glenda keep a lookout for an email from me on reference call details and I will work on that piece. Okay? And then we can set up our sync for after the reference call once we know when that date and time is for the reference call.
Glenda Mack (16:14) Okay. That’s perfect. I really appreciate it. Yeah.
Jake Shubert (16:17) And then if any questions come up as we’re evaluating other vendors or ourselves about where we’re different, how things might look with medallion, let us know. We’re happy to help there as well.
Glenda Mack (16:24) Okay. No, that sounds great. Thank you. Cool. Well.
Jake Shubert (16:27) If we don’t chat, I hope you all have a great weekend and I’ll be in touch.
Glenda Mack (16:31) All right. Appreciate it. Thanks.
Jake Shubert (16:32) Guys. Bye bye.