,Rate Conversion Explained

When you offer a rebate, it's typically a Fixed Rate like $2/case, Fixed Price, or Percent. In all cases you need to know how much you owe. Fixed Rate is simple. It's whatever the fixed rate you give.

Fixed Price and Percent are trickier. This is where Rate Conversion comes in. It helps convert your Fixed Price or Percent deals into a Fixed Rate so you know how much the rebate should be.

Let's say you have a case of product that you sell for $25 to the distributor. You give an offer to an operator for $22. Rate Conversion determines that $25-$22=$3. So what you essentially owe is $3/case. Using the same example, if you give someone a 5% rebate, then Rate Conversion knows to take $25 x 5% = $1.25/case.

Rate Conversion uses one of three methods to work: 1) Default Price. Here when you set up a new product in ContractGO, you can enter a default price. That will be used in the above Rate Conversion formulas. 2) Price List. If you can send over a price list, then Rate Conversion can use the price from that. 3) Sales Feed. If you can send over a sales feed(what you sell to distributors), then Rate Conversion can use this. It will use exactly what you sold the product for to that specific distributor for that specific month. This is the most accurate of the three typically since your selling price can fluctuate from what's on your pricelist and what you enter in as your default price.