With this pricing model, for every percentage point the commodity element is higher than stipulated in the contract, that percentage value of the premium value will be added to the fixed price.
Example:
Take a contract with the percentage for Fat set at 40%, the price is 0.80 EUR/KG and the premium is 3 EUR/KG. If the contract is executed with 41% of fat delivered, that adds 0.03 EUR to the price:
Contract Price + (Premium x Percentage difference) = Final Price.
0.80 + (2 x 1%) = 0.80 + 0.02 = 0.82 EUR/KG
When this pricing model is selected:
| • | Enter a price with currency and unit, same as for Priced contracts. |
| • | Per Commodity element there is a required field for a content premium. This field is initially blank. |
| • | For every % point the element is higher than the contract stipulation, that percentage of this value will be added to the price. |
| • | Negative premium values are allowed and will be subtracted. |
| • | The currency/unit for the premium is the same as for price. |
