Producer Price Premium (PI1568)

This metric is intended to capture the price premium a producer or supplier to the organization earns, which is the percentage by which a product/service's selling price exceeds a benchmark price. The benchmark price is the average price that can be obtained for a similar product/service in the local area.

An example of how this metric might be calculated follows. By selling to the organization, farmers get USD 2 per pound for a good (such as apples) compared to only USD 1 per pound for selling the same good in the local market. The reporting organization would report this as (USD 2 – USD 1) / USD 1 x 100 = 100% and would footnote assumptions with regard to how they derived the local market rate (that is, the benchmark).

In some circumstances, this metric can help describe the CONTRIBUTION an organization likely had to the degree of change (depth) in outcome that the stakeholders experienced, relative to what the market or social system would have done anyway. For more on the alignment of IRIS metrics to the five dimensions of impact, see IRIS+ and the Five Dimensions of Impact (https://iris.thegiin.org/document/iris-and-the-five-dimensions/). No single metric is sufficient to understand an impact; rather, metrics are selected as a set across all dimensions of impact. When possible, the selection of metrics to measure and describe the five dimensions should be based on best practice and evidence.