Pricing Mechanisms Clause Samples
The Pricing Mechanisms clause defines how the price for goods or services will be determined under the contract. It may specify fixed prices, formulas based on market indices, or methods for adjusting prices due to changes in costs or other variables. For example, the clause might allow for price adjustments if raw material costs fluctuate or set out a schedule for periodic price reviews. Its core function is to provide transparency and predictability in pricing, reducing the risk of disputes and ensuring both parties understand how charges will be calculated throughout the contract term.
Pricing Mechanisms. As part of Canada’s system, all raw milk produced and marketed in Canada must be sold by producers to the provincial Milk Marketing Boards, which in turn sell this raw milk as the primary raw material input to processors.22 Prices paid by processors and received by producers vary depending on how the milk is ultimately used (the milk’s end-use).
Pricing Mechanisms. Buyer will provide the Seller with a flexible and comprehensive pricing and payment facility pursuant to the following terms and conditions:
Pricing Mechanisms. The ▇▇▇▇▇▇▇▇▇ Act requires that the final purchase price under the terms of all grape purchase agreements be calculable for reporting purposes by January 10 of the year following the harvest, including any bonuses and allowances. Violation of the ▇▇▇▇▇▇▇▇▇ Act renders the contract "illegal and unenforceable." The thrust of the ▇▇▇▇▇▇▇▇▇ Act is that grape prices be fixed by January 10 following the harvest, even if payment is delayed. Pricing mechanisms under grape purchase agreements need to assure that the price is capable of being determined in compliance with the ▇▇▇▇▇▇▇▇▇ Act. A fixed price per ton pricing mechanism, most typically used in short-term "spot" contracts, complies with the ▇▇▇▇▇▇▇▇▇ Act. If a fixed price per ton is used in longer term agreements, the fixed price may be tied to indexes, such as the Consumer Price Index or to percentage shifts in the Final Grape Crush Report published by the California Department of Food and Agricultural for the particular varietal and geographical area. In evergreen contracts, it is common for pricing per ton to be determined by reference to the price reported in the Final Grape Crush Report for the year prior to the harvest. Those formulas often refer to the weighted average price as reported in the Final Grape Crush Report, or to higher percentile levels, or the weighted average level plus a stated percentage, depending upon the quality of the grape, the term of the contract and the outcome of other negotiated elements in the contract. Price adjustments can be capped to prevent a decrease in per ton pricing under any circumstances or to limit any increase or decrease to a certain maximum percent change. In addition, the grower and purchaser may consider a fixed percentage increase for the price of grapes. The fixed percentage may not capture all market trends and requires a certain degree of speculation but the parties will realize greater certainty in their contracting and avoid the often time consuming process of calculating adjustments based on the grape crush report. Because pricing is most often calculated on a "per ton" basis, accurate weight measurements are critical to a fair and accurate total purchase price calculation. Accurate weight measurements require not only a precise, usually certified, scale and qualified weighmaster to prepare the weigh tags but also, for the benefit of the grower, the grapes should be weighed as close to harvest as possible. Transportation of harvested grapes, exposur...
Pricing Mechanisms. Two pricing mechanisms are being applied to this contract: o Capped Time and Materials o Guaranteed Maximum Price with Target Cost
Pricing Mechanisms. 8.4.1 Material shall be priced by the Buyer on the following terms and conditions:
Pricing Mechanisms. The following pricing mechanisms (“Pricing Mechanisms”) shall apply to determine the Price of the Products.
9.1.1. Pricing Based upon a ▇▇▇▇-Up Percentage. The Price of the Products is our Cost, as defined below, plus the ▇▇▇▇-Up specified in the Schedule. If a Product sold is not listed on the Schedule, the ▇▇▇▇-Up for it will be provided to you by the selling Distributor at time of order.
9.1.2.1. For example, the Price for a Product with a [ * * * ]% ▇▇▇▇-Up would be calculated as Cost multiplied by [ * * * ]. A Product with a $[ * * * ] Cost would have a Price of $[ * * * ] ($[ * * * ] x [ * * * ] = $[ * * * ]).
9.1.3. Agency billing programs, including Coca-Cola, Pepsi Cola, and Ecolab, provide for the Distributor to receive agency payments directly from the manufacturer or supplier (“Supplier”) as compensation for distribution services. These Products will be sold to you at the price that you have negotiated with the Suppliers without any additional charge. We will pass the quick payment discount for Products sold under an Agency billing program to you provided that you pay us within the terms specified in the Agency billing program. Currently this pertains to Coca-Cola and Pepsi Cola and payment needs to be made in 14 days.
Pricing Mechanisms. The following pricing mechanisms ("Pricing Mechanisms") shall apply to determine the Price of the Products.
9.1.1 [Redacted: Product pricing]
(a) [Example redacted]
Pricing Mechanisms. The following pricing mechanisms (“Pricing Mechanisms”) shall apply to determine the Price of the Products. [***] Confidential treatment requested. [***] Confidential treatment requested.
9.1.1. Pricing Based upon a ▇▇▇▇-Up Percentage. The Price of the Products is our Cost, as defined below, plus the ▇▇▇▇-Up specified in the Schedule. If a Product sold is not listed on the Schedule, the ▇▇▇▇-Up for it will be provided to you by the selling Distributor at time of order.
9.1.2.1. For example, the Price for a Product with a [***]% ▇▇▇▇-Up would be calculated as Cost multiplied by [***]. A Product with a $[***]Cost would have a Price of $[***] ($[***]x [***]= $[***]).
Pricing Mechanisms