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Understanding 'OGR Buy Price Override'
Understanding 'OGR Buy Price Override'

Information on when you should use this setting, and its effects.

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Written by Raymond Carrel
Updated over a week ago

The OGR Buy Price Override field is required for tariffs that provide you with a recurring margin as well as OGR (ongoing revenue).

In the examples below we will show you how profits are calculated when OGR buy price override is set as TRUE or FALSE.

OGR Buy Price Override = TRUE

When OGR buy price override is marked as TRUE the profits are calculated as follows:

Profit = Recurring Margin + OGR

Recurring Margin = (Recurring Sell – Recurring Buy) x Term

OGR = Recurring Buy x Term x OGR

Example:

Tariff: O2 Sharer

Recurring Buy: £10

Recurring Sell: £15.48

Term: 24 months

OGR: 35%

OGR Term: 24

Profit for one service:

Recurring margin: (£15.48 - £10) x 24 = £131.52

OGR: £10 x 24 x 35% = £84

Profit: £131.52 + £84 = £215.52


OGR Buy Price Override = FALSE

When OGR buy price override is marked as FALSE the profits are calculated as follows:

Profit = Recurring Margin + OGR

Recurring Margin = (Recurring Sell – Recurring Buy) x Term

OGR = Recurring Sell x Term x OGR

Example:

Tariff: O2 Sharer

Recurring Buy: £10

Recurring Sell: £15.48

Term: 24 months

OGR: 35%

OGR Term: 24 months

Profit for one service:

Recurring margin: (£15.48 - £10) x 24 = £131.52

OGR: £15.48 x 24 x 35% = £130.03

Profit: £131.52 + £130.03 = £261.55

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