Advanced multiple premiums and discounts

Advanced Multiple premiums and discounts

Especially in metals trading sophisticated pricing strategies are used, involving setting various additional charges (premiums) or reductions (discounts) on the base price of a commodity based on multiple factors such as quality, quantity, delivery terms, market conditions, and specific customer agreements. Dycotrade CTRM supports you around the following:

Key Components

Premiums

    • Quality Premiums: Higher prices for metals of superior quality, purity, or specific grades.
    • Location Premiums: Additional charges based on the delivery location, considering logistics, transportation costs, and regional demand.
    • Time Premiums: Premiums for immediate or short-term delivery due to higher demand or limited supply.
    • Specification Premiums: Charges for metals with specific characteristics, such as alloy composition, dimensions, or other technical specifications.

Discounts

      • Volume Discounts: Price reductions based on the quantity purchased, incentivizing bulk orders.
      • Early Payment Discounts: Lower prices offered to customers who pay promptly or ahead of the due date.
      • Off-Peak Discounts: Discounts provided during periods of low demand or surplus supply.
      • Loyalty Discounts: Reductions for repeat customers or long-term contracts to foster ongoing business relationships.

The Dycotrade multiple premiums and discounts functionality helps your teams with Tailored Pricing, your traders can adjust prices to meet the specific needs of different customers, reflecting the unique attributes of each transaction.
Dynamic Adjustments allow them quick adaptation to market changes, ensuring that prices remain competitive and relevant, giving you a competitive advantage.