New Definitions for Multiplicative and Additive Trade Differential
Additive vs Multiplicative Differential Percentage For Trade
●Differential Percentage For Trade Items: This will provide a bonus in store credit to the consignor when selecting to receive payment in the form of store credit over cash.
○Additive: With this option enabled, if you set the differential to 10%, then the trade value would be the price of the item multiplied by the trade differential percentage added to the cash value.
Additive Example: You have an item that is priced at $50.00. Your split is 50/50, meaning the cash value of this item when processed would be $25.00 to the client. The trade differential set to 10%, that would make the store credit trade offer $30.00.
Formula For Additive Trade Example:
Price * Split percentage = Cash Value
Price * Trade Differential = Additional Trade Value
Cash Value + Additional Trade Value = Total Trade Value
$50 * 50% = $25.00
$50 * 10% = $5.00
$25 + $5 = $30.00
1.Price + Split Percentage = Cash Value
50 * .50 = $25.00
2.Price * Differential Percentage = Additional Trade Value
50 * .10 = $5.00
3.Cash Value + Additional Trade Value = Trade Value
25 + 5 = $30.00
○Multiplicative: With this option enabled, if you set the differential to 10%, then the trade value would be 110% the cash value.
Multiplicative Example: You have an item that is priced at $50.00. Your split is 50/50, meaning the cash value of this item when processed would be $25.00 to the client. With the trade differential set to 10%, that would make the store credit trade offer $27.50.
Formula For Multiplicative Example:
Price * Split Percentage = Cash Value
Cash Value * Differential Percentage = Additional Trade Value
Additional Trade Value + Net to consignor = Total Trade value
$50 * 50% = $25
$25 * 10% = $2.50
$2.50+ $25.00 = $27.50
1.Price * Split Percentage = Cash Value
50 * .50 = $25.00
2.Cash Value * Differential Percentage = Additional Trade Value
25 * .10 = $2.50
3.Additional Trade Value + Cash Value = Total Trade Value
2.50 + 25 = $27.50 