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Container Pricing: Weighted Average

Iron Mountain has standardized vaulting service pricing for containers based upon container size categories.  In order to fairly account for the current differences between items, pricing for each container size category will be calibrated on a weighted average basis according to actual inventory; once the weighted average is determined, it will not vary if the mix of container types within a category changes.  As a result, some of your individual invoice items will be increased or decreased.  For a detailed example of a weighted average calculation, see below.

For example, if a customer has the following containers within the Medium Container Category:

3 CONTAINER - 5 1/4 FLOPPY (CAP = 12), with a price of $30
4 CONTAINER - DLT (CAPACITY = 32), with a price of $32
10 CONTAINER - TUB (MEDIUM), with a price of $28

With weighted average, the new monthly price per item would be $29.29.  

Weighted average says to actually take account of all the items you have, so that calculation would be:

CONTAINER - 5 1/4 FLOPPY (CAP = 12) 

$30

CONTAINER - 5 1/4 FLOPPY (CAP = 12)

$30

CONTAINER - 5 1/4 FLOPPY (CAP = 12)

$30

CONTAINER - DLT (CAPACITY = 32) 

$32

CONTAINER - DLT (CAPACITY = 32) 

$32

CONTAINER - DLT (CAPACITY = 32)  

$32

CONTAINER - DLT (CAPACITY = 32)

$32

CONTAINER - TUB (MEDIUM)

$28

CONTAINER - TUB (MEDIUM)

$28

CONTAINER - TUB (MEDIUM)

$28

CONTAINER - TUB (MEDIUM)

$28

CONTAINER - TUB (MEDIUM)

$28

CONTAINER - TUB (MEDIUM)

$28

CONTAINER - TUB (MEDIUM)

$28

CONTAINER - TUB (MEDIUM)

$28

CONTAINER - TUB (MEDIUM)

$28

CONTAINER - TUB (Medium)

$28

Total 

$498

Quantity

17

Weighted Average Price  

$29.29


Weighted Average is determined by dividing the sum of all Monthly prices and dividing by the total number of items.  For the above example, the calculation would be as follows:

Sum of all total Monthly Prices: $498
Divided by Total Number of Items: 17
Equals Weighted Average Price: $29.29

A similar calculation will be executed for each container size category.