Example 2 - Simple Median Calculated on Discount Percentage

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Example 2 - Simple Median Calculated on Discount Percentage

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When Simple Median is selected to determine the midpoint value of SSP and the SSP Band Calc On field is DISC_PCT, the SSP Analyzer will do the calculations in the following order to derive SSP%.

1. Calculate the Median SSP%.

The Median SSP% is calculated based on the following formula:

Median SSP% = MEDIAN (Discount%)

The following table shows the discount percentage of each transaction line in this example.

ITEM_NUM

List Price

Sell Price

SSP Sell% (%List)

Discount%

HARDWARE_FV

7049

6785

96.25%

3.75%

HARDWARE_FV

7059

6613

93.68%

6.32%

HARDWARE_FV

7299

6506

89.14%

10.86%

HARDWARE_FV

7061

6253

88.56%

11.44%

HARDWARE_FV

7010

6123

87.35%

12.65%

HARDWARE_FV

7372

6369

86.39%

13.61%

HARDWARE_FV

7465

6090

81.58%

18.42%

HARDWARE_FV

7344

5555

75.64%

24.36%

HARDWARE_FV

7249

5343

73.71%

26.29%

HARDWARE_FV

7572

5281

69.74%

30.26%

HARDWARE_FV

7040

4771

67.77%

32.23%

HARDWARE_FV

7041

4438

63.03%

36.97%

HARDWARE_FV

7535

4741

62.92%

37.08%

HARDWARE_FV

7587

4628

61.00%

39.00%

There are 14 transactions altogether. According to the simple median method, SSP Discount% equals the average discount percentage of 7th and 8th transactions.

Median SSP Discount% = (18.42% + 24.36%)/2 = 21.39%

2. Calculate the High Band SSP Discount% value.

The High Band SSP Discount% is derived based on the following formula:

High Band SSP Discount% = Median SSP Discount% + (Median SSP Discount% * High Band Percent/100)

The High Band Percent is specified by the High/Ceiling% field in the SSP Analyzer template or SSP batch. The value is 15 in this example.

High Band SSP Discount% = 21.39% + (21.39% * 15/100) = 24.60%

3. Calculate the Low Band SSP Discount% value.

The Low Band SSP Discount% is derived based on the following formula:

Low Band SSP Discount% = Median SSP Discount% - (Median SSP Discount% * Low Band Percent/100)

The Low Band Percent is specified by the Low/Floor% field, which 15 in this example.

Low Band SSP Discount% = 21.39% - (21.39% * 15/100) = 18.18%

4. Calculate the High Band SSP% and Low Band SSP% based on the following formulas:

High Band SSP% = 100 – Low Band Discount%

Low Band SSP% = 100 - High Band Discount%

4. Determine whether each transaction is compliant within the SSP% (or SSP Discount%) range.

If the Discount% of a transaction is within this SSP Discount% range (18.18% ~ 24.60%), this transaction is marked as compliant by the Analyzer; otherwise, the transaction is incompliant.

5. Calculate the compliance percentage.

The actual compliance percentage can be calculated by the following formula and then compared to the Compliance% value specified in the SSP Analyzer template or SSP batch.

Compliance Percentage = (Total number of compliant transactions/Total number of transactions) * 100

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