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Cost Definitions

Term

Definition

How it is Derived

BG Cost (Buy Group Cost)

The dealer's base purchase cost from the buying group (ADC).

Provided by the buy group's pricing file. It is the starting dealer cost before credits.

BG Cost – EOMs

Buy Group Cost after applying End of Month credits.

BG Cost – EOM credits

BG Net Cost (NEAG)

The dealer's true net cost after all applicable credits.

Buy Group Cost – Instant Rebates – EOMs – Other applicable credits

Trade Cost (TC)

The standard dealer cost in the NEAG buying group.

Provided by NEAG.

TC-IR

Trade Cost after Instant Rebates are deducted.

Trade Cost – Instant Rebate

REP Cost

Replacement Cost; the dealer's replacement acquisition cost for the product.

Entered or maintained by the dealer/system. Not automatically calculated.

BG Salesperson Cost

An adjusted internal cost used by salespeople for quoting and profitability.

Dealer-defined formula based on BG Cost (often BG Cost plus a percentage).

REP Salesperson Cost

An adjusted salesperson cost based on Replacement Cost.

REP Cost + dealer-defined percentage

Freight

Shipping cost from the buy group warehouse to the dealer.

Calculated or supplied by NEAG based on shipping charges.

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