Base year pricing clause: Copy, customize, and use instantly
Introduction
A base year pricing clause sets the initial price for goods or services under a contract and outlines how pricing adjustments, if any, will be handled in future periods. It ensures transparency in cost management and provides a clear reference point for price changes, often tied to inflation, market trends, or performance metrics.
Below are base year pricing clause templates tailored to various scenarios. Copy the one you need, customize it, and add it to your contract.
Standard base year pricing clause
This clause establishes a fixed base price for the first year of the agreement.
The pricing for the goods/services under this agreement shall be fixed at $[insert amount] for the base year [insert year]. Pricing adjustments for subsequent years shall be negotiated in good faith no later than [insert timeline] prior to the start of the next contract year.
Inflation-adjusted base year pricing clause
This clause ties future price changes to inflation.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Prices for subsequent years may be adjusted annually based on the Consumer Price Index (CPI) or a similar agreed-upon index, with adjustments capped at [insert percentage] per year.
Performance-linked base year pricing clause
This clause links price adjustments to specific performance metrics.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for subsequent years shall depend on the achievement of the following performance benchmarks: [list benchmarks]. Failure to meet benchmarks will result in no price increase.
Fixed-term base year pricing clause
This clause locks in pricing for a specific period beyond the base year.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year] and shall remain fixed for a term of [insert number] years. Pricing adjustments thereafter will be subject to mutual agreement.
Indexed base year pricing clause
This clause adjusts future prices based on an industry-specific index.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Annual adjustments will align with the [insert industry-specific index] published by [insert authority], subject to a maximum adjustment of [insert percentage].
Market rate adjustment base year pricing clause
This clause allows price adjustments based on market rates.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for subsequent years will reflect prevailing market rates, as determined by an independent third-party assessment or mutual agreement.
Escalation cap base year pricing clause
This clause limits price increases for future years.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Annual price increases shall not exceed [insert percentage] of the base year price, regardless of market or inflationary factors.
Multi-year base year pricing clause
This clause sets base pricing for a multi-year period.
The pricing for the goods/services under this agreement shall be fixed at $[insert amount] annually for the base period spanning [insert years]. Adjustments after this period will be renegotiated no later than [insert timeline] prior to the next renewal.
Early termination pricing clause
This clause adjusts pricing in the event of early termination.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. If the agreement is terminated before the end of the base year, pricing will be prorated, and any prepaid amounts will be refunded or credited.
Cost-plus base year pricing clause
This clause sets the base price with a markup for costs.
The pricing for the goods/services under this agreement shall be calculated as the base cost of production ($[insert amount]) plus a markup of [insert percentage]. Adjustments for subsequent years will be tied to changes in base costs, subject to documentation and mutual approval.
Revenue-sharing base year pricing clause
This clause ties the base year pricing to shared revenue agreements.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for subsequent years will be based on a revenue-sharing model, where [insert percentage]% of net revenue generated will determine subsequent payments.
Step-up base year pricing clause
This clause includes incremental price increases over the agreement term.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with a step-up increase of [insert percentage] applied annually. The step-up adjustments will commence from [insert date] and continue for the agreement's duration.
Regional base year pricing clause
This clause sets pricing based on geographic regions.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year] within [insert region]. Adjustments for other regions will be determined based on local market conditions and agreed upon separately.
Seasonal adjustment base year pricing clause
This clause adjusts pricing based on seasonal factors.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with seasonal adjustments applicable for [insert specific seasons]. Adjustments will reflect demand fluctuations and will not exceed [insert percentage].
Discounted base year pricing clause
This clause includes an introductory discount for the base year.
The pricing for the goods/services under this agreement shall be discounted to $[insert amount] for the base year [insert year] as a promotional rate. Subsequent years will revert to the standard pricing of $[insert amount].
Dynamic base year pricing clause
This clause uses dynamic pricing mechanisms for adjustments.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Pricing for subsequent years will dynamically adjust based on real-time data, including market conditions and usage volumes, with mutual agreement required for changes.
Bundled services base year pricing clause
This clause includes bundled services in the base year pricing.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], inclusive of the following bundled services: [list services]. Pricing adjustments for subsequent years will be contingent on the continuation of bundled offerings.
Escrow-based base year pricing clause
This clause ties payments to an escrow agreement.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with payments held in escrow until completion of agreed milestones. Adjustments for subsequent years will follow milestone-based renegotiations.
Trial-period base year pricing clause
This clause provides a trial period with prorated pricing.
The pricing for the goods/services under this agreement shall be prorated at $[insert amount] for the initial trial period of [insert time frame]. If the trial transitions into a full agreement, pricing for the base year will be set at $[insert amount].
Penalty-inclusive base year pricing clause
This clause includes penalties for failure to meet conditions.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Failure to meet specified conditions may result in a penalty of [insert amount], deducted from subsequent year pricing or other payments.
Performance-based base year pricing clause
This clause links base year pricing to specific performance metrics.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for subsequent years will depend on the achievement of the following performance metrics: [list metrics].
Inflation-adjusted base year pricing clause
This clause includes automatic adjustments for inflation.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with annual adjustments based on the [insert index] inflation rate, capped at [insert percentage] per year.
Market-driven base year pricing clause
This clause allows pricing to adjust based on market trends.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for subsequent years will be determined by prevailing market conditions and agreed-upon benchmarks.
Fixed-term base year pricing clause
This clause guarantees the pricing remains unchanged for a fixed term.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year] and will remain fixed for a term of [insert duration], after which renegotiation may occur.
Tiered base year pricing clause
This clause sets pricing based on usage or volume tiers.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with additional charges based on the following usage tiers: [list tiers and rates]. Tier adjustments will be reviewed annually.
Early-payment discount base year pricing clause
This clause offers a discount for early payments.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with a [insert percentage]% discount applied if payment is made within [insert time frame] of invoice issuance.
Conditional renewal base year pricing clause
This clause ties pricing adjustments to contract renewal terms.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Renewals are conditional upon mutual agreement and may include pricing adjustments of up to [insert percentage].
Depreciation-based base year pricing clause
This clause accounts for asset depreciation in pricing.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for subsequent years will include depreciation costs calculated at [insert percentage] annually.
Joint-venture base year pricing clause
This clause is specific to collaborative ventures.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], reflecting the joint-venture partnership between [Party A] and [Party B]. Pricing adjustments will consider shared resources and responsibilities.
Risk-sharing base year pricing clause
This clause incorporates shared risk into pricing adjustments.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for subsequent years will account for shared risks, including [list risks], with renegotiation triggered by unforeseen events.
Competitor-comparison base year pricing clause
This clause ties pricing adjustments to competitor benchmarks.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for subsequent years will reflect the average pricing trends among [insert relevant competitors or market segment].
Innovation-incentive base year pricing clause
This clause incentivizes innovation or efficiency improvements.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Subsequent pricing adjustments may include bonuses or discounts tied to [specific innovations or efficiency targets] achieved by [Party B].
Provisional base year pricing clause
This clause establishes a temporary pricing structure, subject to review.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Pricing is provisional and will be reviewed after [insert period] based on [insert criteria, e.g., performance or market conditions].
Volume-discount base year pricing clause
This clause offers discounts for exceeding usage or order thresholds.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with discounts applied for volumes exceeding [insert threshold] at a rate of [insert percentage] per additional unit.
Long-term commitment base year pricing clause
This clause provides stability for multi-year agreements.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. A fixed annual increase of [insert percentage] will apply for the next [insert number] years, contingent on the continuation of this agreement.
Seasonal-adjustment base year pricing clause
This clause considers seasonal demand in pricing.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with adjustments for high-demand seasons calculated at [insert rate or percentage].
Geographic-specific base year pricing clause
This clause adjusts pricing based on regional considerations.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year] for services provided in [insert region]. Regional adjustments may apply based on [insert factors, e.g., logistics or local regulations].
Milestone-driven base year pricing clause
This clause ties pricing to the achievement of specific milestones.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Subsequent pricing will be reviewed upon the completion of [insert milestones] and adjusted accordingly.
Currency-fluctuation base year pricing clause
This clause accounts for exchange rate variability in international contracts.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with adjustments made quarterly to reflect currency exchange rate fluctuations beyond [insert threshold].
Sustainability-aligned base year pricing clause
This clause incorporates environmental factors into pricing.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments may include sustainability metrics, such as carbon offset costs or compliance with eco-friendly standards.
Inflation-adjusted base year pricing clause
This clause adjusts pricing annually based on inflation indices.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Subsequent adjustments will align with the [insert inflation index] published annually, capped at a [insert percentage] increase per year.
Performance-benchmark base year pricing clause
This clause ties pricing to key performance indicators.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for subsequent years will be contingent on meeting agreed-upon performance benchmarks outlined in [insert section].
Risk-sharing base year pricing clause
This clause splits unexpected cost fluctuations between parties.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Any cost fluctuations exceeding [insert threshold] will be shared equally between the parties.
Dynamic base year pricing clause
This clause allows for real-time adjustments based on market changes.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments will be made quarterly to reflect real-time changes in [insert factor, e.g., commodity prices or labor rates].
Early-renewal incentive base year pricing clause
This clause offers discounts for renewing the agreement early.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Discounts of [insert percentage] will apply if the agreement is renewed by [insert date].
Productivity-linked base year pricing clause
This clause ties pricing adjustments to productivity gains.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Future pricing may include reductions based on productivity gains exceeding [insert percentage threshold].
Tiered base year pricing clause
This clause establishes different pricing tiers based on volume.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with tiered pricing of $[insert amount] for volumes up to [insert threshold] and $[insert amount] for volumes exceeding that threshold.
Rebate-based base year pricing clause
This clause offers rebates for meeting specific conditions.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with an annual rebate of [insert percentage] applied for meeting [insert condition, e.g., early payment terms or sales targets].
Industry-standard base year pricing clause
This clause ties pricing to industry averages.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments will align annually with industry-standard pricing as reported by [insert industry body or publication].
Escalation-free base year pricing clause
This clause guarantees no price increases during the agreement term.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with no price increases for the duration of the agreement.
Deferred adjustment base year pricing clause
This clause defers price adjustments until a specific milestone.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments for inflation or other factors will be deferred until [insert milestone or period, e.g., the end of year two].
Multi-year lock-in base year pricing clause
This clause locks in pricing for multiple years.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year] and shall remain fixed for a period of [insert years] years before any adjustments are applied.
Conditional escalation base year pricing clause
This clause allows price increases only under specific conditions.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Escalation is permitted only if [insert condition, e.g., regulatory changes or unforeseen cost increases].
Competitive-index base year pricing clause
This clause benchmarks pricing against competitor rates.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year] and will be reviewed annually to ensure alignment with competitive rates in the [insert industry] market.
Cost-plus base year pricing clause
This clause establishes a base price with added costs for defined variables.
The pricing for the goods/services under this agreement shall be $[insert base amount] for the base year [insert year], plus [insert percentage] of any additional costs incurred due to [insert specific variable, e.g., raw material price changes].
Seasonal adjustment base year pricing clause
This clause modifies pricing based on seasonal demand fluctuations.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with seasonal adjustments applied for peak periods between [insert dates].
Pre-determined cap base year pricing clause
This clause establishes a fixed cap on price adjustments.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Any annual adjustment will not exceed [insert percentage or amount] during the term of the agreement.
Geographic pricing base year clause
This clause adjusts pricing based on regional differences.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with regional adjustments applied for delivery to [insert regions] to reflect local cost variations.
Long-term incentive base year pricing clause
This clause provides benefits for long-term commitments.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. A discount of [insert percentage] will apply if the agreement is extended beyond [insert number] years.
Volume-sensitive adjustment base year pricing clause
This clause adjusts pricing based on order volumes.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with adjustments of [insert percentage] applied for volumes exceeding [insert threshold].
Revenue-share base year pricing clause
This clause ties pricing adjustments to revenue generated.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments will be made annually, based on [insert percentage] of gross revenue generated from the use of the goods/services.
Inflation-indexed base year pricing clause
This clause aligns price adjustments with inflation indices.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year] and will be adjusted annually based on the [insert inflation index] rate.
Performance-based base year pricing clause
This clause adjusts pricing based on performance metrics.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments to pricing will depend on achieving [insert performance metric, e.g., delivery timelines or service uptime].
Tiered base year pricing clause
This clause creates pricing tiers based on usage or volume.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Tiered pricing will apply for increased usage, starting at [insert rate] for volumes exceeding [insert threshold].
Risk-adjusted base year pricing clause
This clause includes a premium to account for identified risks.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. A risk premium of [insert percentage] will be added to account for [insert specific risks].
Market review base year pricing clause
This clause mandates periodic reviews against market trends.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year] and will be reviewed every [insert period] to ensure consistency with prevailing market conditions.
Fixed-margin base year pricing clause
This clause ensures a fixed margin regardless of cost changes.
The pricing for the goods/services under this agreement shall be $[insert base cost] for the base year [insert year], with a fixed margin of [insert percentage] applied regardless of production cost fluctuations.
Dynamic demand base year pricing clause
This clause adjusts pricing based on real-time demand.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Prices will dynamically adjust to reflect demand changes during high-traffic periods.
Resource-dependent base year pricing clause
This clause links pricing to resource availability.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year]. Adjustments will apply if resource availability, such as [insert resource, e.g., raw materials], changes significantly.
Government-regulated base year pricing clause
This clause ensures compliance with government pricing regulations.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year] and will comply with all applicable government pricing regulations and caps.
Technology-refresh base year pricing clause
This clause incorporates adjustments for technological upgrades.
The pricing for the goods/services under this agreement shall be $[insert amount] for the base year [insert year], with annual increases of [insert percentage] to account for technology upgrades or new feature rollouts.
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