Configure-to-Order & Product Configuration worked example
Custom Order Premium at 72% share of premium scope captured: a worked example
This worked example runs the custom order premium numbers for a tougher week than the baseline: 72% share of premium scope captured instead of the typical 100%. Estimate the premium needed for custom configured orders beyond standard option pricing.
The inputs for this scenario
- Custom configured units on the order: 12 units (held at the documented default)
- Premium charged per custom unit: 1,850 $ / unit (held at the documented default)
- Share of premium scope captured: 72 % (the input this scenario stresses; the baseline uses 100)
- Fixed custom approval and setup premium: 2,400 $ (held at the documented default)
Working through the calculation
- The calculation starts from the formula this tool documents: Variable custom order premium = custom configured units × premium required per custom unit × custom premium scope included.
- total custom order premium works out to 18,384 $ at these inputs, and this is the headline figure for the scenario.
- custom order premium per configured unit or quote works out to 1,532 $ / piece at these inputs.
- variable custom order premium works out to 15,984 $ at these inputs.
- fixed custom approval and setup premium works out to 2,400 $ at these inputs.
How this compares with the baseline
- Against the tool's baseline example, where share of premium scope captured sits at 100% and the headline result is 24,600 $, this scenario comes in 25.27% below the baseline at 18,384 $.
- Use it while quoting a custom or non-catalog configuration, or when reviewing whether your custom surcharges are recovering true cost. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.
Results at a glance
- total custom order premium: 18,384 $ (headline result)
- custom order premium per configured unit or quote: 1,532 $ / piece
- variable custom order premium: 15,984 $
- fixed custom approval and setup premium: 2,400 $
Run it with your numbers
- To rerun this with your own numbers, open the live Custom Order Premium calculator, set share of premium scope captured to your actual value, and adjust the remaining inputs to match your operation.
Last reviewed 2026-05-12.