Electric Motor List Price and Net Selling Price: How to Compare a Quote with a Rebate

An electric motor list price is the starting figure a supplier publishes for a model code; what you pay is the net selling price, found after the rebate with the formula N = L × (1 − i) (L list price, i rebate rate). When comparing two quotes, look not at the rebate rate but at the net amount brought to the same scope: the same model code, the same tax and freight scope, the same documents and warranty. A higher rebate does not mean a lower net amount if the list base is higher or the scope is incomplete. DRG Motor publishes its current net prices model by model on Buy Electric Motors Online.

Below we explain list price, rebate and net price with symbols and without figures; then we give the formula for bringing two quotes with rebates to the same base and the scope lines that must be written in the quote. A general checklist on where to buy a motor is in our article Where to Buy an Electric Motor? A 12-Point Checklist for Ordering Online; this article focuses only on the list–net relationship and on reading a quote with a rebate.

What do list price, rebate and net price mean?

• List price (L): The figure for a model code in the supplier’s price list. The list must have a date or version; the same supplier’s old and new lists give different L values.
• Rebate rate (i): The share taken off the list price. It may vary by customer group, quantity or period; on its own it means nothing and only makes sense together with the list it applies to.
• Net price (N): The unit amount after the rebate: N = L × (1 − i).
• Net amount with scope (K): The net price plus freight (T) and extra parts or labour (A) written separately in the quote, with the tax scope brought to the same base in both quotes: K = quantity × N + T + A.

The value used for comparison is K. L and i are intermediate information needed to calculate K.

How do you bring two quotes with rebates to the same base?

Let quote A have list price L_A and rebate i_A, and quote B have L_B and i_B. The net unit amounts are:

• N_A = L_A × (1 − i_A)
• N_B = L_B × (1 − i_B)

Quote A is lower in net terms only if L_A × (1 − i_A) < L_B × (1 − i_B). In this inequality the size of the rebate rate says nothing on its own: even if i_B > i_A, N_B comes out larger when L_B is high enough. That is why "our rebate is higher" is not a comparison unless the list base is written.

Successive rebates do not add up

Some quotes show two steps: first a general rebate i₁, then i₂ for quantity or project. The net price is N = L × (1 − i₁) × (1 − i₂). Expanded, N = L × (1 − i₁ − i₂ + i₁ × i₂); so a two-step rebate is smaller than the sum of the rates by i₁ × i₂. When reading the quote, do not add the two rates and use them as one rebate; apply the formula step by step.

Which scope lines must be written in the quote?

The most common situation in a quote with a high-looking rebate is that some items are left out. Before calculating K, check that these lines are written in both quotes:

For the tax scope, check the wording, not a number: if "tax included" or "tax excluded" differs between the two quotes, bring both to the same base before calculating K. The same goes for freight; if freight is included in one figure and paid by the buyer in the other, the T term is added only to the second.

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Why should a list price be read by model code?

A list price belongs to a model code, not to a power rating. For the same 15 kW there are three motors at three speeds, each with a different frame, shaft and torque:

If a quote only says "15 kW motor" and gives a list price and rebate, it is not clear which code the figure belongs to. DRG-180L-6 and DRG-160M2-2 have the same power but rated torques of 146.5 Nm and 48.6 Nm, and different frames (180L and 160M). Without a code on the list line, the comparison puts net amounts of different products side by side.

For multi-unit purchases the same rule applies line by line: each model code should be written on its own line with its own L and i. In a quote that gives one total and one rebate rate, you cannot see the net price of each motor; code-based lines are needed so that you can ask for the same net price when you later order a spare motor or a single extra unit.

The 3 most common mistakes when comparing quotes with rebates

1. Comparing the rates: Putting i_A and i_B side by side and deciding. The values to compare are N and K, not i.
2. Not asking for the list version: A high rebate on an older list may lead to the same net amount as a lower rebate on the current list. Ask for the list date in writing.
3. Adding up without aligning scope: If freight and extra parts are included in one quote and excluded in the other, calculate K = quantity × N + T + A separately for each quote; add the excluded item with your own estimate and note it.

What to check once the net amount is known?

If the K values are close, the decision turns to technical and documentary items: is there a technical data sheet, are mounting dimensions published, is a warranty certificate provided? DRG Motor is a manufacturer, supplier and seller of electric motors; product codes follow the DRG-<frame>-<poles> format and the dimensions of every code are published on the technical drawings page. DRG MOTOR motors are guaranteed against material and manufacturing defects for 2 years from the delivery date (warranty certificate). Freight is handled by contracted freight and cargo companies and is paid by the buyer; the terms are on the sales, delivery and return terms page.

For a motor that will run for long periods, operating cost enters the calculation alongside the purchase amount. You can see a motor’s annual energy use with the energy consumption calculator; if the two quotes are for technically different motors, this calculation may weigh more in the decision than the net amount.

Where can you see net prices for DRG models?

At DRG prices are published by model code; each code in the table below leads to the product page with its current net price. Match the code and frame in your quote with this table.

For other powers and speeds, the 120 models in our online store are listed in the same way.

Motors in this power range

• DRG-160M-4 – 11 kW – 1465 rpm – 160M · cast iron
• DRG-160M2-2 – 15 kW – 2945 rpm – 160M · cast iron
• DRG-160L-4 – 15 kW – 1465 rpm – 160L · cast iron
• DRG-180L-6 – 15 kW – 978 rpm – 180L · cast iron
• DRG-180M-4 – 18.5 kW – 1470 rpm – 180M · cast iron

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Frequently Asked Questions

What is the difference between list price and net price?

The list price is the starting figure published for a model code; the net price is the unit amount to be paid after the rebate: N = L × (1 − i).

Is the quote with the higher rebate always better?

No. If the list base differs, or freight, extra parts and tax scope are left out of the quote, the net amount with scope of the higher-rebate quote may come out larger.

How is a two-step rebate calculated?

The steps are applied in turn: N = L × (1 − i₁) × (1 − i₂). The rates are not added.

How many amps does a 15 kW 1500 rpm motor draw?

According to the DRG-160L-4 data, it draws 27.3 A at 400 V and 28.8 A at 380 V; its rated speed is 1465 rpm.

To check the model code and scope of your quote together, call +90 (542) 666 11 11, write to [email protected] or use our contact page. All models and current prices are listed on Buy Electric Motors Online.