Pricing
Indexed Pricing
A contract where your rate floats with a wholesale market index.
Definition
Indexed (or variable) pricing ties your commodity rate to a published wholesale market index, so it rises and falls with the market.
Detailed explanation
Indexed contracts can capture savings when prices fall but expose you to volatility when they rise. They suit sophisticated buyers with the appetite and processes to manage risk actively.
Why it matters
Choosing between fixed and indexed structures is one of the most consequential procurement decisions — it defines your risk posture.
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