[lbo-talk] pro rata delta

kelley at pulpculture.org kelley at pulpculture.org
Thu Dec 18 09:04:49 PST 2003


anyone know what pro rata delta means?

context: i asked for 25% of whatever client pays for the product I produce.

exploiter: i;m offered 25% of gross.

me: no, 25% of net

exploiter: has to be 25% of net because we may discount package deals where your product is bound up with someone else's.

I read that as meaning that, if they put together a package where the product i create is normally sold for 1K but is packaged with something that normally sells for 5k, they might sell it at a discount for 5k. in which case, the pro rata discount for each product is 16.5%. Instead of 25% of 1000, it's 25% of ~840.00. Or, $250 v $210.

this net v gross language seems superfluous to me.

kelley



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