Understanding Pricing Types in the Commercial Summary section

In the Commercial Summary section of the Halifax Fan Selector, two primary pricing types are used: Trilogy Cost Roll-Up Pricing and Rules-Based Pricing. These pricing models are automatically applied to the fan selection based on the configuration and data available, and users do not have the option to choose between them.

1. Trilogy Cost Roll-Up Pricing

• Identified By: The Trilogy logo next to the price within the Commercial Summary section:

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• How It Works: Trilogy’s Cost Roll-Up Pricing is based on live data from an ERP system, incorporating the Bill of Materials (BOM) and Bill of Operations (BOO) to determine the price.

  • BOM (Bill of Materials): This is used to calculate the costs of the materials required to build the fan, factoring in steel weights, accessory costs, and other components.

  • BOO (Bill of Operations): This covers the labour costs, taking into account wages, operation time, and other expenses.

• Accuracy: Cost Roll-Up Pricing is extremely accurate because it directly integrates ERP data, providing real-time, precise calculations. This makes it particularly suitable for clients requiring a highly detailed and up-to-date cost structure.

• Future Outlook: Over time, more and more pricing will transition to Trilogy Cost Roll-Up as it provides a more precise, real-time cost structure. The integration with the ERP system allows for ongoing updates to pricing based on actual data, making it the preferred choice as more configurations are added.

2. Rules-Based Pricing

• How It Works: Rules-Based Pricing uses a more algorithm-driven approach. This method relies on the weight of steel, accessories, and a complex algorithm that uses historical data.

  • The data is inflated to ensure pricing is accurate and relevant to present-day costs, even if the historical data may come from previous years.

• How It Works in Practice: The algorithm processes a combination of factors, such as material weight and past pricing trends, to estimate a fan’s cost. It is then adjusted to reflect current market conditions, ensuring the quoted price is competitive.

• Accuracy: While not as precise as Trilogy's Cost Roll-Up, Rules-Based Pricing provides a good estimate and is used when full integration with an ERP system is not required. It is based on a more general set of inputs, making it suitable for a variety of standard configurations.

3. Pricing Model Determination

• Automatic Application: Users cannot choose between Trilogy Cost Roll-Up and Rules-Based Pricing. The type of pricing model applied is automatically determined by the configuration of the fan and the data available at the time of selection.

• When Trilogy Cost Roll-Up is Used: If your fan configuration is linked to the ERP system and the relevant BOM and BOO data, Trilogy Cost Roll-Up Pricing will be applied, providing highly accurate pricing.

• When Rules-Based Pricing is Used: If your configuration does not yet integrate with the ERP system, Rules-Based Pricing will be applied. This model relies on historical data and algorithms for a good, though less precise, estimate.