By default, any investor Max Price rule scripted at the system level protects any markups.
Formula: Max Price – Markup = Buy Side (LO) Price Cap
Example: 103.00 – 1.00 = 102.00
If the investor Max Price is 103 and markups total -1.00, then the buy side (LO) price caps at 102.00.
Markups will not be protected in the following cases:
- If the system level Max Price rule is overlaid
- If you have built custom products in the site and the products are inheriting the system-level Max Price rule
- If you have built custom products and scripted your own Max Price rule
You can overlay the existing rule (or script a new customer specific rule) & change the action type to ‘Max Price (Pre-Markup)’ to ensure the markups are protected. This document describes the max price option definitions in Optimal Blue.
To ensure markups are protected, overlay the existing rule (or script a new rule) and change the action type to Max Price (Pre-Markup).
Max Price Action Type Descriptions
Set Maximum Price / Max Price in Dollars
These options cap the price at a specific value (in price or dollars) and display the capped price for all rates where applicable. The system backs out the customer’s net markup from the value applied as the cap. This happens automatically when capping the investor price (usually at system level vs. customer level).
Max Price (Post-Markup, Pre-Comp) / Max Price (Post-Markup, Pre-Comp) in Dollars
These options cap the buy side price after markups are applied and back out the customer’s LO Compensation from the value applied as the cap.
Formula: Max Price – LO Comp = Buy Side Price Cap
Example: 104.00 – 1.50 = 102.50
Max Price (Pre-Markup) / Max Price (Pre-Markup) in Dollars
These options cap the price before markups are applied and back out the customer’s net markup from the value applied as the cap. <PREFERRED METHOD for customer to script Max-Price>
Formula: Max Price – Total Markup (Markup – Subsidy) = Buy Side Price Cap
Example: 104.00 – (2.50 – .25) = 101.75
Max Price (Pre-Markup Excluding Subsidies)
This option caps the price before markups are applied and backs out the customer’s net markup (excluding subsidies) from the value applied as the cap.
Formula: Max Price – Total Markup (not including subsidy) = Buy Side Price Cap
Example: 104.00 – 2.50 (not including subsidy of .25) = 101.50
Max Price (Pre-SRP)
This option caps the price at value before SRP has been applied.
Formula: Max Price Pre SRP + SRP = Buy Side Price Cap
Example: 103.00 + 1.20 = 104.20
Max Price (Pre-SRP, Pre-Markup) / Max Price (Pre-SRP, Pre-Markup) in Dollars
These options cap the price at a specific value (in price/dollars) before the SRP has been applied.
Formula: Max Price (Pre SRP, Pre Markup) – Total Markup = Cap (Pre SRP) + SRP = Buy Side Price Cap
Example: 104.00 – 2.50 = 101.50 + 1.20 = 102.70
Max Price Cut-Off / Max Price Cut-Off in Dollars
These options cap the price at a specific value (in price/dollars) and does not display any pricing for rates above cap where applicable.
