What it means
Electrical pricing is often expressed as a multiplier on list price rather than as a fixed price for each item. A multiplier below 1 is a discount from list: 0.40 means paying 40% of list. Different customers, product lines and order sizes can have different multipliers.
Manufacturers use multipliers when selling to distributors, and distributors often use them when pricing for contractors — for example, a contractor may have one multiplier on wiring devices and another on lighting. When a manufacturer raises list prices, the same multiplier produces a higher net price.
An example (illustrative numbers): a product has a list price of $250. A contractor with a 0.45 multiplier on that product line pays $112.50.
Why it matters
- Comparing quotes. Two quotes may use different multipliers on different list prices — compare the resulting net prices.
- Protecting margin. Distributors need each customer’s multipliers applied consistently across quotes and orders.