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excele-commercetheory

E-Commerce, how to calculate price on 3 dimensional matrix?


I have a product that we wish to have a quote form for. the form has:

1 - Quantity 2 - Size 3 - Option Extra 1 4 - Option Extra 2 etc..

The Quantity and Size determine the cost of the optional extras. E.g to "paint" the item as an optional extra will need to calculate based on the quantity and size.

Whats the best way to build a pricing matrix to support this structure? I can do an excel table with Quantity & Size, but I don't know how to represent a number of option elements that depend on these 2 dimensions.

Any help much appreciated..


Solution

  • If it takes twice as much paint to paint two widgets than it does one, this is just

    $(total) = $(each) * quantity
    

    For the size, you'll need a number to scale the cost. The amount of paint needed is proportional to the surface area to paint, so in this case

    $(total) = $(per sq ft) * total sq ft
    

    But you can roll the first function into the second, right? Just treat two widgets as one with twice the square footage.

    So ultimately you'll need some estimate of cost per sq ft of surface area to paint. Calculate the total square footage of all of the widgets you're selling, and multiply this by the cost per square foot to paint, and you have the price of the extra.