What is a price?
A price is more than just the amount of money your customer will pay to purchase a product. A price is built up of several parts. These include the price paid to the manufacturer, the seller’s markup and any shipment costs. In addition, there are often additional “one-time” costs to be added the first time a product is purchased from a supplier.
The Macaos Price Engine builds a price from the following parts:
Limitations: A collection of constraints, such as product type, number of layers, etc. which determine whether or not the price list applies to the product/order.
Factory one-time price: The supplier’s one-time price, if applicable.
Factory base price: The supplier’s price for manufacturing the product.
Factory MOV: If the total factory price is less than the minimum order value, then the factory base price is increased accordingly.
Factory price in USD: The factory price, converted from the supplier’s currency to US Dollars.
Retail one-time price: The one-time price in USD that the customer will pay, if applicable.
Retail base price: Adds the seller’s markup to the factory base price in USD.
Minimum markup: If the seller’s markup is less than the minimum markup (in USD), then the retail base price is increased accordingly.
Shipping price: The estimated shipment cost in USD.
Finally, when generating a quotation, the price is converted from USD to the customer’s currency.
Note: Prices are converted to USD in order to facilitate comparing prices from multiple price lists. The Quotation module automatically chooses the least expensive active price list for each quantity/lead-time point in the quotation.
A simple example
To start with, let’s take a look at what a price list would look like for a simple factory. This factory’s price sheet might look something like:
Price per m² in Euro, 2 layers:
< 0.5 m² | 0.5 – 1.0 m² | 1.0 – 3.0 m² | 3.0 – 10.0 m² | > 10.0 m² |
---|---|---|---|---|
NA | 100 | 95 | 90 | NA |
Start cost: 50 Euro | Minimum order value: 80 Euro | |
Lead time: 5 working days | Discount: 1-layer: 10%, 0-layer: 20% | |
Surface finish: Lead-free HASL | Minimum line/spacing: 0.125 mm | |
Solder mask: green | Minimum annular ring: 0.125 mm | |
Legend: white silkscreen | Minimum hole diameter: 0.50 mm | |
Buildup: 1.6mm FR-4 Tg=110 | Hard gold, peel-off, etc: NA |