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Price books: Understanding 'OGR Buy Price Override'
OGR Buy price override
OGR buy price override field is required for tariffs, which provide you with recurring margin as well as OGR (ongoing revenue)
In the examples below we will show you how profits are calculated when OGR buy price override is calculated as TRUE and FALSE
OGR Buy Price Override = TRUE
When OGR buy price override is marked as TRUE the profits are calculated as follows:
Profit = Recurring Margin + OGR
Recurring Margin = (Recurring Sell – Recurring Buy) x Term
OGR = Recurring Buy x Term x OGR
Example:
Tariff: O2 Sharer
Recurring Buy: £10
Recurring Sell: £15.48
Term: 24 months
OGR: 35%
OGR Term: 24
Profit for one service:
Recurring margin: (£15.48 - £10) x 24 = £131.52
OGR: £10 x 24 x 35% = £84
Profit: £131.52 + £84 = £215.52
OGR Buy Price Override = FALSE
When OGR buy price override is marked as FALSE the profits are calculated as follows:
Profit = Recurring Margin + OGR
Recurring Margin = (Recurring Sell – Recurring Buy) x Term
OGR = Recurring Sell x Term x OGR
Example:
Tariff: O2 Sharer
Recurring Buy: £10
Recurring Sell: £15.48
Term: 24 months
OGR: 35%
OGR Term: 24 months
Profit for one service:
Recurring margin: (£15.48 - £10) x 24 = £131.52
OGR: £15.48 x 24 x 35% = £130.03
Profit: £131.52 + £130.03 = £261.55
Author: Michaela Gormanova