Information About Catalog Pricing

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Different Parts of a Catalog Price

IMVU uses a system called Profit Based Pricing to determine the price of all goods in the Product Catalog. The system works similarly to the way prices are set in real life. The price at IMVU consists of 4 parts namely:

• Derivation Cost

• Profit

• Retail Markup

• Final Price

The complete formula using the 4 parts for calculating price at IMVU is: Final Price = Derivation Cost + Profit + ((Derivation Cost + Profit) x .10)

To calculate the total price of an IMVU product using the Profit Based Pricing system, follow the steps below:
 

Understanding the Different Parts of a Catalog Price

Derivation Cost.  This is the sum of all the profits in your derivation chain. If you are familiar with real life retail, this would be called the Cost of Goods. Every product including IMVU products includes a profit which is part of the Derivation Cost.

Example: Let's say you derive from Product A, which is an IMVU created product. If IMVU sets a profit of 250 credits on that product and if you derived from A to make your own product, then your Derivation Cost is 250 credits.

Now let's say you derived from Product B, which is another User's product. However B is also a derivation of A.  If B had a profit of 200 credits and if A has a profit of 250 credits, then your total Derivation Cost is: (200 + 250) = 450 credits.

All Derivation Costs are summed at their full amount without any discount. Since all IMVU products have a profit, all products should at minimum reflect IMVU's profit as part of their Derivation Cost.

Profit. This is the amount of credits you want to earn per sale of your product. Profits must be zero or more. Negative prices are not accepted.

Retail Markup. IMVU charges a 10% markup fee for all goods in the catalog. This fee is calculated by summing up your costs plus profit and then multiplying by .1 (or 10%).

Example: Product C has a Derivation Cost of 250 credits and a Profit of 50 credits. The Retail Markup is: (250+50)=300*10% = 30 credits.

Final Price. This is the total of Derivation Cost + Profit + Retail Markup.

Example: Product C's Derivation Cost is 250, the Profit is 50, and the Retail Markup is 30. Therefore, the Final Price is: (250+50+30) = 330 Credits.

And again, the complete formula for calculating the price of a good at IMVU is: Final Price = Derivation + Profit + ((Derivation + Profit) x .10)

Example:  If Final Price = 115.5 credits, then the Final Price will be rounded up to 116 credits in the catalog.

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