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How is a price calculated?

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  • How is a price calculated?

A price is calculated by working through the sections of the price list in order.

Each of the sections is calculated by working through a collection of price elements. These elements are processed in order. All price elements also have constraints, which can determine if a price should be marked as invalid and whether or not to modify the price.Price calculation

  • Limitations: The product/order must meet all of the constraints in this section, or the price will be invalid.
  • Factory one-time price: The price elements in this section are processed in order. If a constraint is not met, then processing of this section stops, but the price remains valid.
  • Factory base price: The factory’s price for manufacturing the boards. If a constraint is not met, then processing stops and the price will be invalid.
    Factory MOV: If the sum of the factory one-time price (if any) and factory base price is less than the factory’s minimum order value (MOV), then the factory base price is increased accordingly.
  • Factory price in USD: The factory price, converted from the factory’s currency to USD.
  • Retail one-time price: The one-time price, in USD, that the customer will pay, if applicable. (This price is not dependent on the factory one-time price. It may be larger, smaller or the same as the factory one-time price.) If a constraint is not met, then processing of this section stops, but the price remains valid.
  • Retail base price: Adds the seller’s markup to the factory base price in USD. If a constraint is not met, then processing stops and the price will be invalid.
  • Minimum markup: If the seller’s markup is less the minimum markup (in USD), then the retail base price is increased accordingly.
  • Shipping price: The estimated shipment cost in USD.

If the product/order does not meet a constraint in the Limitations, Factory base price, or Retail base price sections, then the price will be invalid and no further processing will take place.

If a constraint is not met in any other section, then further processing of that section will cease, but any price calculated before the constraint was encountered is still applied to that section and the price remains valid.

Book traversal links for How is a price calculated?

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