For the Waterdeep Trading Company, order quantity is not a clerical detail. It is a product strategy choice that shapes cash, risk, and service.
MOQ and EOQ only make sense when viewed through the lens of what a product is meant to do for the business. Some goods are built for volume. Others exist to deliver value, margin, or capability. When teams align product strategy with ordering behavior, decisions become more precise, and silent balance-sheet damage is avoided.
This article integrates the product strategy view, the MOQ-EOQ trade-off, and a worked example that makes the trade-off visible.
Two Product Strategies, Two Ordering Behaviors
Most products fall into one of two broad strategies. Bulk flow goods are designed to move. Value-sensitive goods are designed to protect margin and cash.
This classification should happen before any discussion of order size.
Bulk Flow Products
Bulk-flow products sell steadily, store cheaply, and rarely lose value over time.
For these goods, MOQ pressure is often acceptable. Excess stock turns quickly, and the business recovers its coin through normal sales.
EOQ still matters, but it often aligns closely with MOQ when holding costs and demand are well-balanced.
This is why buyers feel comfortable ordering by the crate or wagon.
Value Sensitive Products
Value-sensitive products behave very differently.
Demand is uneven. Storage is costly. Risk rises the longer goods sit idle. These products punish excess.
Here, EOQ is usually far lower than the supplier’s MOQ. Every unit above EOQ increases tied-up cash and write-off exposure.
Accepting MOQ without challenge becomes a structural risk, not a short-term inconvenience.
These products are where ordering discipline matters most.
MOQ and EOQ Within Product Strategy
MOQ and EOQ serve different masters.
The supplier sets the MOQ and reflects their cost structure. It is a constraint.
The business sets the EOQ and aligns it with total cost and working capital goals. It is a decision target.
The conflict arises when the MOQ exceeds the EOQ.
This matrix alone often explains why an order feels wrong before numbers are even reviewed.
Worked Example
Consider the case of a specialty alchemical ink, favored by scribes and guild clerks. Annual demand remains modest but consistent, while the supplier insists on large batch distillations. This setup creates a classic tension between what the business wants to order and what the supplier requires.
When MOQ Sits Above EOQ
Consider the case of a specialty alchemical ink, favored by scribes and guild clerks. Annual demand remains modest but consistent, while the supplier insists on large batch distillations. This setup creates a classic tension between what the business wants to order and what the supplier requires.
Scenario Setup: The company sells a specialty alchemical ink used by scribes and guild clerks.Annual demand is low but steady. The supplier only runs large batch distillations.
The following table summarizes the key assumptions for this scenario: annual demand is 50 vials, the supplier’s minimum order quantity (MOQ) is 500 vials, and the business’s calculated economic order quantity (EOQ) is 60 vials. Each vial costs 8 FSD, and the annual holding cost rate is 25%. By strategy, this ink is a value-sensitive product, making excess inventory a costly risk.
This is a value-sensitive product by strategy.
EOQ View: What the business would choose
If the business could order at its preferred EOQ, the numbers reflect a lean approach: 60 vials per order, a purchase value of 480 FSD, and an average inventory of 30 vials. Inventory value stays at 240 FSD, with an annual holding cost of just 60 FSD. Cash exposure is limited, and inventory turns efficiently.
Cash exposure is limited, and inventory turns cleanly.
MOQ View: What the supplier requires
When the supplier’s MOQ dictates the order size, the impact is dramatic. The business must purchase 500 vials at once, tying up 4,000 FSD. Average inventory jumps to 250 vials, with a value of 2,000 FSD, and annual holding costs soar to 500 FSD. This approach locks up far more cash and increases the risk of unsold stock.
What Changed
Demand did not change. Unit cost did not change. Only the order quantity changed.
Cash tied up increased by 3,520.00 FSD. Annual holding cost increased by 440.00 FSD.
That difference lives entirely on the buyer’s balance sheet.
Making the Trade Off Visible: Buyer and Planner Checklist
Before placing an order that exceeds EOQ, teams should pause and answer the following.
Multiple No answers indicate that the order carries structural risk.
When This Becomes a Leadership Issue
High MOQ on value-sensitive products should never be handled quietly.
These cases belong in sales and operations planning or integrated planning discussions, where demand, supplier strategy, and cash are reviewed together.
Negotiating With Strategy in Mind
Suppliers often defend MOQs on the grounds of unit price. That view ignores total cost.
Better discussions focus on shared value. Stable commitments, longer contracts, coordinated transport, or phased deliveries can lower MOQ pressure without harming supplier economics.
Strategy provides the leverage. Quantity follows.
Other Ordering Strategies to Consider Beyond MOQ and EOQ
MOQ and EOQ frame the core tension between supplier constraints and internal cost control. The company also uses additional ordering strategies to fit product behavior, demand visibility, and risk tolerance. These approaches complement MOQ and EOQ rather than replace them.
These strategies let planners express product intent clearly. A healing potion may use min-max replenishment to protect service, while festival banners use project-based ordering to avoid leftovers.
Final Thoughts
Order quantity is not neutral. It reflects how a product creates value.
Bulk flow goods reward scale. Value-sensitive goods punish excess. MOQ is a constraint imposed from outside. EOQ is a choice made within the business.
When teams connect product strategy to ordering behavior, trade-offs become visible, intentional, and easier to lead.
Support the AD&D365 Project on Patreon. To grow this world, we’ve launched an official Patreon page where supporters can access exclusive content, tools, and training labs, and even influence the project’s future. Your support fuels more than just development; it expands the guildhall, forges new scrolls, and empowers the next generation of configuration wizards. Begin your journey: https://www.patreon.com/adnd365/
A Grateful Salute to Our Patrons. To all those who stand behind the vision, thank you for helping bring this world to life. Our Benefactors, Andre Breillatt and Eryndor Fiscairn‡, your boundless generosity fuels the arcane core of this project. Without your magic, the weave would falter. Our Apprentices, the spell engines turn, and the training labs thrive thanks to our current Apprentices: Michael Ramirez and Andreth Bael’Rathyn‡. Special thanks to our past Apprentices, whose contributions helped us get here: Ralf Weber, Wendy Rijners, Shashi Mahesh, Julia Tejera, Ben Ekokobe, Tiago Xavier, Naveen Boyinapelli, Marcos Tadeu Wolf, Kathryn Greene, Jason Brown, Mark Christy, and Ashish Singh.Our Initiates, Jesper Livbjerg, Peter Lorre, Gregory Brigden, and Martin Grahm, your commitment marks the start of the deeper path, stepping beyond mere observation into the active shaping of this realm. Our Followers, your steady presence along the journey is a beacon of encouragement: Rusty Cavalier,Eric Shuss, Sunil Panchal, Sarah D. Morgan, Nick Ramchandani, Daniel Kjærsgaard, and Tomasz Pałys. And our Voyeurs, Harry Burgh, Abdelrahman Nabil, and Basil Quarrell, ever watching from the shadows, clearly intrigued… but not enough to part with a single gold piece. Your silent curiosity is noted and mildly judged.
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The Morning of the Three Bottles The bells of the Waterdeep Trading Company’s counting house chimed the eighth hour as Greta Ironfist strode into the pricing hall. Ledger-keepers were already at their desks, quills scratching in neat columns while the scent of parchment, ink, and faintly sweet syrup filled the air. On the great oak table in the center of the room sat three glass bottles, each gleaming under the morning light—one plain but sturdy, one etched with seasonal motifs, and one crowned with gold filigree. Greta stopped beside them, resting her calloused hand on the S3 bottle as though it were a treasured relic. “These,” she said to the gathered clerks, “are more than syrup. They are the proof of our craft, the measure of our discipline, and the promise we make to every customer who walks through our doors. Whether you sell to a dockside inn or the High Lord’s feast, the price must be right, fair to them, fair to us.” She nodded to the head scribe, who unrolled a parchment marked with the familiar S1–S3 tiers. Numbers and attributes danced across the page like runes of commerce, each line telling the story of a product’s value: its flavor, its rarity, its place in the market. This was the Company’s way, turning traits into tariffs, attributes into coin, and it had kept their coffers full for decades.
In the labyrinthine alleys of Waterdeep’s Trade Ward, merchants haggle over crates of goods while scribes tally weights and measures in ink-stained ledgers. For the Waterdeep Trading Company (WDTC), pricing is not left to the chaos of the marketplace. Instead, it is governed by a structured system that transforms a product’s attributes into precise, repeatable pricing rules.
By defining product attributes, rarity tier, size, seasonal status, and enhancement type, the Company ensures every sale is consistent, fair, and profitable. The foundation of this method is the tier system, known internally as S1–S3, which assigns products into structured pricing categories.
What It Is
Before we can apply structured pricing, we must understand the foundation of the approach. This section introduces the concept of product attribute–based pricing, how characteristics like flavor type, rarity, and size become the framework for determining base prices and modifiers. By replacing guesswork with defined attributes, WDTC ensures consistency across its entire product catalog.
Product attribute–based pricing is a strategy that uses the characteristics of an item to determine its base price and any modifiers. Attributes may be purely physical (size, weight), tied to rarity (common vs seasonal), or value-enhancing (arcane infusion, sugar-free variants).
In WDTC’s syrup trade, this approach avoids setting prices individually for each SKU. Instead, a tiered pricing table and attribute multipliers generate the correct price for every product variation automatically.
Why It Matters
The value of an attribute-based pricing system lies in its ability to serve both operational efficiency and commercial advantage. Here we explain why WDTC invests in this method, covering the benefits of consistency, scalability, and speed, as well as how the approach safeguards margins while encouraging customer loyalty.
Consistency: All merchants pay prices grounded in defined rules, not guesswork.
Scalability: New products can be slotted into existing tiers without rewriting the entire price list.
Speed: Price updates are applied instantly across all products sharing the same attribute set.
Margin Protection: Rare and high-cost items maintain premium pricing even during seasonal promotions.
Support the AD&D365 Project on Patreon.
To grow this world, we’ve launched an official Patreon where supporters can gain access to exclusive content, tools, training labs, and even influence the future of the project. Your support fuels more than just development , it expands the guildhall, forges new scrolls, and empowers the next generation of configuration wizards. Begin your journey: https://www.patreon.com/adnd365/
A Grateful Salute to Our Patrons
To all those who stand behind the vision, thank you for helping bring this world to life. Our Benefactor, Andre Breillatt, your boundless generosity fuels the arcane core of this project. Without your magic, the weave would falter. Our Apprentices, the spell engines turn and the training labs thrive thanks to our current Apprentices: Michael Ramirez and Andreth Bael’Rathyn (Name obfuscated to protect their identity). Special thanks to our past Apprentices, whose contributions helped us get here: Ralf Weber, Wendy Rijners, Shashi Mahesh, Julia Tejera, Ben Ekokobe, Tiago Xavier, Naveen Boyinapelli, Marcos Tadeu Wolf, Kathryn Greene, Jason Brown, Mark Christy, and Ashish Singh.Our Initiates, Peter Lorre, your commitment marks the start of the deeper path, stepping beyond mere observation into the active shaping of this realm. Our Followers, your steady presence along the journey is a beacon of
Want to design your own economic models in Faerûn?
To make attribute-based pricing work in practice, WDTC needed a simple, universal classification. This section presents the S1–S3 tier framework, showing how products are grouped into Common, Seasonal, and Specialty categories. Each tier reflects availability, production cost, and buyer segment, forming the base layer for all pricing calculations.
Attribute Modifiers
The tier sets the foundation, but the real power comes from fine-tuning. This section details the modifiers that adjust base prices within a tier: size multipliers, sweetener premiums, seasonal adjustments, and packaging upgrades. By layering these rules, WDTC tailors each product’s price to its exact combination of attributes.
Once a tier is set, additional attributes adjust the base price:
Size: Larger bottles (24oz) use a multiplier (e.g., 1.75× S1 base price).
Packaging Prestige: Ornate or magical packaging can double retail value for noble clients.
Worked Example: Pumpkin Spice Syrup (S2 Seasonal)
Theory is valuable, but nothing drives home a process like a real example. In this section, we walk through the pricing calculation for a seasonal favorite, Pumpkin Spice Syrup. Each step shows how attributes, modifiers, and customer discounts flow into a final price per bottle, demonstrating how repeatable and transparent the process can be.
Attributes:
Tier: S2 (Seasonal)
Size: 12oz
Sweetener: Classic sugar
Season: In-Season (Fall)
Pricing Calculation Flow:
Base Price (Tier S2, 12oz): 6.85 FSD
Seasonal Modifier: None (In-Season)
Customer Group Discount: Preferred customer → –15% = 5.82 FSD
Volume Discount: Order of 24 bottles → –10% = 5.25 FSD
Final Price per Bottle: 5.25 FSD
This structured calculation ensures that whether the syrup is sold in Dock Ward’s guildhouses or shipped to a noble estate in Silverymoon, the pricing is consistent and predictable.
Realms-Aware Considerations
Pricing in Faerûn is never just about numbers, it’s about context. This section addresses the factors outside the core calculation that WDTC must account for: guild tariffs, regional availability, magical enhancements, and festival demand spikes. These realities influence how attribute-based pricing is applied in practice across the Realms.
Guild Tariffs: The Confectioners’ Guild levies additional fees on S3 products to maintain exclusivity.
Regional Availability: Certain flavors are only viable in specific climates (e.g., Frostsap from Icewind Dale).
Magical Enhancements: Arcane infusion extends shelf life but adds to cost.
Festivals: Flavors linked to major holidays (Shieldmeet, Midwinter) may shift from S1 to S2 during high demand.
Final Thoughts
An attribute-based pricing system is not simply a mechanical exercise in number-crunching—it is a discipline that shapes the way the Waterdeep Trading Company engages with every facet of its trade. By using the S1–S3 tier framework as a foundation, the Company ensures that each product is valued not by whim, but by the tangible qualities and market realities that define it.
This approach allows the Company to navigate the diverse economies of Faerûn with confidence. In the same week, a merchant caravan may carry S1 common syrups to rural taverns along the Trade Way, S2 seasonal syrups to bustling city markets, and S3 specialty syrups to the banquet halls of noble estates. Each sale, whether modest or grand, follows the same transparent structure—reinforcing fairness and predictability for customers while protecting margins.
Beyond immediate profit, this method strengthens WDTC’s long-term position. Consistency builds trust, and trust becomes loyalty. Preferred customers can rely on their tier-based advantages without the uncertainty of shifting prices, while non-preferred customers are presented with clear incentives to deepen their relationship with the Company. Seasonal surges and rare ingredient shortages may influence pricing, but they do so within a framework that is understood by all parties.
In a realm where the price of goods can be swayed by guild politics, sudden resource scarcity, or even the whims of magic, WDTC’s attribute-driven pricing system serves as both a shield and a sword. It shields the Company from market instability by applying calculated safeguards, and it acts as a sword by giving WDTC a competitive edge over less disciplined rivals.
Ultimately, the practice transforms pricing from a reactive task into a proactive strategy—one that aligns perfectly with the Company’s broader mission: to conduct trade across Faerûn with precision, foresight, and an unyielding commitment to fair dealing. The sweet profits of the syrup trade are merely one example of how this philosophy plays out in the everyday business of the Waterdeep Trading Company.
As the Dynamics Master, you control more than just the dice, you oversee the very economic systems that power the Waterdeep Trading Company’s operations in AD&D365. Greta Ironfist has tasked you with crafting a rebate structure that not only rewards customer loyalty but also strategically boosts profit margins, clears surplus stock, and strengthens alliances across Faerûn.
Your players aren’t adventurers with swords, they’re trade agents, procurement specialists, and sales negotiators working inside the system you run. Their battlefield is the Rebate Management workspace.
From the WDTC Headquarters in Waterdeep, trade flows across caravans, airships, and planar portals. The competition is fierce, Baldur’s Gate’s spice consortium, Calimport’s jewel traders, Neverwinter’s timber merchants, all offering tempting prices.
Your mission as Dynamics Master is to create a rebate program in AD&D365 that makes your customers think twice before taking their coin elsewhere.
Support the AD&D365 Project on Patreon.
To grow this world, we’ve launched an official Patreon where supporters can gain access to exclusive content, tools, training labs, and even influence the future of the project. Your support fuels more than just development , it expands the guildhall, forges new scrolls, and empowers the next generation of configuration wizards. Begin your journey: https://www.patreon.com/adnd365/
A Grateful Salute to Our Patrons
To all those who stand behind the vision, thank you for helping bring this world to life. Our Benefactor, Andre Breillatt, your boundless generosity fuels the arcane core of this project. Without your magic, the weave would falter. Our Apprentices, the spell engines turn and the training labs thrive thanks to our current Apprentices: Michael Ramirez and Andreth Bael’Rathyn (Name obfuscated to protect their identity). Special thanks to our past Apprentices, whose contributions helped us get here: Ralf Weber, Wendy Rijners, Shashi Mahesh, Julia Tejera, Ben Ekokobe, Tiago Xavier, Naveen Boyinapelli, Marcos Tadeu Wolf, Kathryn Greene, Jason Brown, Mark Christy, and Ashish Singh.Our Initiates, Peter Lorre, your commitment marks the start of the deeper path, stepping beyond mere observation into the active shaping of this realm. Our Followers, your steady presence along the journey is a beacon of
Want to design your own economic models in Faerûn?
In the arsenal of a skilled Dynamics Master, few tools are as versatile as tiered and hybrid agreements. These configurations allow the Waterdeep Trading Company to move beyond one-size-fits-all offers, tailoring incentives that adapt to customer behavior and seasonal rhythms. By layering spend or volume thresholds, combining different rebate triggers, and aligning offers with festivals or market events, you can guide purchasing patterns with precision. The result is a rebate program that not only rewards loyalty but also shapes the very flow of trade across Faerûn.
Tiered: Set multiple spend/volume bands in the agreement to encourage progressive purchasing
Hybrid: Combine volume thresholds with targeted product incentives
Seasonal: Apply rebate lines with effective dates matching festivals or market events
Use at the start of a rebate period to determine external influences on sales:
(For 2–19, use the full “Rebate Trigger Events” table from the core guide.)
Use at rebate cycle close to determine payout style in AD&D365:
In the realm of the Dynamics Master, success is not won with swords, but with spreadsheets and strategic foresight. Each rebate cycle is a campaign in its own right, with profit margins as your battlefield, customer satisfaction as your supply lines, and market share as your captured territory. To claim victory, you must balance generosity with discipline, rewarding loyalty while keeping the Waterdeep Trading Company’s coffers secure. The following conditions define what triumph looks like when the final ledger is closed and the cycle’s story is told.
Maintain profitability while funding rebate payouts
Increase customer retention rate by at least 15%
Build exclusive rebate-linked supply contracts with guilds
Failure Conditions
Even the most seasoned Dynamics Master knows that a misjudged rebate program can unravel faster than a frayed caravan rope. Overcommit to payouts, misread the market, or let rivals turn your own tactics against you, and the Waterdeep Trading Company’s advantage can vanish overnight. Failure in this campaign is not simply a loss of coin, it is a loss of influence, trust, and strategic standing in the bustling trade halls of Faerûn. The following conditions mark the signs that the rebate accord has tipped from asset to liability.
As the Dynamics Master, you hold the quill that writes the fate of every rebate cycle. Your role is equal parts strategist, storyteller, and system architect. Just as a dungeon master weaves encounters to challenge and reward adventurers, you must design rebate programs that entice customers, withstand market turbulence, and align with the Waterdeep Trading Company’s grand strategy. The tips below are your toolkit, practical levers and narrative devices to keep the campaign balanced, profitable, and engaging from the first signed agreement to the final coin counted.
Tie game events to AD&D365 automation – let the system track progress toward thresholds in real time
Leverage trade agreements for flexibility – seasonal clauses, product-specific terms, and dynamic start/end dates
Use analytics to adjust mid-cycle – prevent loss by revising thresholds before end-of-period settlements
If your rebate program thrives, the Waterdeep Trading Company solidifies its position as the trade power of the Sword Coast, with Greta Ironfist granting you a seat on the Merchant Council and a share of quarterly profits. Fail, and your name will be whispered in the halls of rival traders as the one who tried to buy loyalty but paid too dear a price.
In the ever-evolving markets of Faerûn, where trade flows through cities like Waterdeep, Calimport, and Neverwinter, the Waterdeep Trading Company (WDTC) has mastered the art of pricing not just as a tactic, but as a philosophy. Whether wooing noble houses or clearing surplus from the warehouse, WDTC applies a variety of pricing strategies to meet demand, encourage loyalty, and maintain dominance across the Realms.
This article explores the diverse pricing incentives and models in use today, revealing how the company leverages both magical and mundane economics to drive trade.
What It Is: Pricing Strategies Explained
Pricing strategies define how the WDTC sets, adjusts, or discounts its prices based on market conditions, customer behavior, or product lifecycle. These incentives range from structured trade policies to flexible merchant decisions, shaped by guild partnerships, regional scarcity, and arcane forecasting.
Why It Matters
Without dynamic pricing, inventory stagnates, customer loyalty fades, and regional trade collapses under the weight of surplus and seasonal variance. Strategic incentives ensure that:
Excess stock is cleared efficiently
Loyal clients are rewarded
Demand can be created or shifted on command
Profitability is maintained even in turbulent markets
Support the AD&D365 Project on Patreon
To grow this world, we’ve launched an official Patreon where supporters can gain access to exclusive content, tools, training labs, and even influence the future of the project. Your support fuels more than just development , it expands the guildhall, forges new scrolls, and empowers the next generation of configuration wizards. Begin your journey: https://www.patreon.com/adnd365/
A Grateful Salute to Our Patrons
To all those who stand behind the vision, thank you for helping bring this world to life.
Our Benefactor, Andre Breillatt, your boundless generosity fuels the arcane core of this project. Without your magic, the weave would falter.
Our Apprentices, the spell engines turn and the training labs thrive thanks to our current Apprentices: Michael Ramirez and Andreth Bael’Rathyn (Name obfuscated to protect their identity).
Special thanks to our past Apprentices, whose contributions helped us get here: Ralf Weber, Wendy Rijners, Shashi Mahesh, Julia Tejera, Ben Ekokobe, Tiago Xavier, Naveen Boyinapelli, Marcos Tadeu Wolf, Kathryn Greene, Jason Brown, Mark Christy, and Ashish Singh.
Our Followers, your steady presence along the journey is a beacon of encouragement: Sunil Panchal, Sarah D. Morgan, Nick Ramchandani, Daniel Kjærsgaard, and Tomasz Pałys.
Our Voyeurs, Harry Burgh, Abdelrahman Nabil, andBasil Quarrell, ever watching from the shadows, clearly intrigued… but not enough to part with a single gold piece. Your silent curiosity is noted, and mildly judged.
Core Incentive Strategies Used by WDTC
The Waterdeep Trading Company employs a wide array of pricing models, tailored to product lifecycle, inventory level, and customer segment. Below is a breakdown of key strategies:
Realms-Aware Considerations
Faerûn is far from homogenous. Pricing incentives must flex across:
Regional Economies: A village’s buying power is not equal to a merchant enclave like Amn. WDTC adjusts incentives accordingly using modifiers like the Economy Modifier and Demand Index.
Guild Regulations: Pricing below market minimums in cities like Waterdeep can draw attention from merchant guilds. Flash sales are thus regionally authorized.
Supply Chain Disruption: When teleportation fees increase due to leyline instability, certain discounts are suspended, or offset with alternate incentives.
Festivals and High Holy Days: Pricing may shift due to demand spikes or religious restrictions on trade.
WORKED EXAMPLE: Bulk Purchase Discount – Crates of Ginger Ale in Amn
Context: The proprietor of The Swaying Bough, a well-established tavern on the edge of Esmeltaran in Amn, places a recurring monthly order with the Waterdeep Trading Company. The drink of choice this season is the Sparkroot Ginger Ale, brewed in Athkatla and prized for its fizzy bite and preservation charms.
Standard Pricing:
Product: Sparkroot Ginger Ale
Unit Price (single bottle): 5.19 FSD
Crate Size: 12 bottles
Bulk Pricing Threshold: Orders of 5 or more crates
Narrative Summary: When the quartermaster from the Waterdeep Trading Company reviews the order in the pricing ledger, the incentive engine within the sales scroll identifies that the order qualifies for bulk pricing. The system reconfigures the per-bottle price automatically and applies it to the invoice. A merchant-signed agreement confirms the updated amount.
A small note is added to the delivery parchment: “Thank you for stocking Sparkroot in quantity. Your bulk pricing rate of 4.60 FSD has been applied across all crates. Consider enrolling in a replenishment contract to lock this rate for the next three months.”
Merchant Response: “I was able to offer a discounted pint to travelers without cutting into margin,” said Elva Rosebottom, tavernkeeper of The Swaying Bough. “They emptied the kegs faster than a bard’s purse.”
WORKED EXAMPLE: Seasonal Clearance – Fireproof Cloaks in Calimport
Context: In the coastal city of Calimport, the summer sun bakes the streets and causes enchanted items to flicker and sweat. With temperatures already high, few are interested in winter gear or flame-resistant clothing, especially when most local fire sources are magical and well contained.
The Waterdeep Trading Company finds itself with 42 units of Fireproof Cloaks originally enchanted for the northern markets of Luskan and Mirabar. These cloaks were shipped south in error and now rest unsold at the Calimport warehouse.
Age in Inventory: 62 days (30 days is average turnover)
Seasonal Status: Out of season
Clearance Discount: 30%
Trigger Event: Warehouse supervisor flags the cloaks as out-of-season stock. The pricing engine applies a Seasonal Clearance Adjustment per standard policy for non-perishables held over 60 days in the wrong climate.
Price Breakdown with Incentive Applied: 75.00 FSD × 30% discount = 22.50 FSD off Final Sale Price: 52.50 FSD per cloak
Additional Note on Margin: The original cost to produce and ship the cloaks was 38.00 FSD per unit, including enchantment fees and teleport tolls. New margin after discount = 52.50 – 38.00 = 14.50 FSD per cloak
Sales Strategy: A targeted promotion is sent to guild-certified smithies and flame-related tradesmen:
“Brace for the heat with last season’s flame-wear. Protective, enchanted, and now offered at midsummer rates while supplies last. Ideal for furnace workers, forgehands, and alchemists.”
Result:
34 out of 42 cloaks sold within 3 days
8 units held in reserve for barter during the upcoming festival
Warehouse space cleared for autumn imports
Merchant Feedback: “I’ve been scorched twice this season already,” said Zol Margrin, a Calimport forgewright. “I don’t care what season it is. For 52.50 FSD, give me two cloaks and make it fast.”
WORKED EXAMPLE: BOGO – Health Elixirs at the Daggerford Apothecary
Context: A traveling merchant named Fennel Whistlebottom stocks a small shop near the gates of Daggerford, specializing in minor magical aids and common adventuring supplies. With trade routes temporarily closed due to bandit raids in the Ardeep Forest, foot traffic from adventurers has increased, and so has the demand for Health Elixirs.
To capitalize on this, the Waterdeep Trading Company issues a 2-week Buy One Get One Free (BOGO) promotion on their standard Elixir of Minor Restoration to move high-stock inventory nearing its arcane shelf limit.
Product Details:
Item: Elixir of Minor Restoration (restores 1d8 + CON mod HP)
Standard Price per Vial: 18.00 FSD
Inventory on Hand (Local Warehouse): 220 vials
BOGO Offer: Buy 1 vial, get 1 free
Max Promotion Quantity per Customer per Day: 4 paid + 4 free = 8 total
Transaction Example: Fennel purchases 10 vials in one visit under the BOGO program.
Pre-Incentive Cost: 10 vials × 18.00 FSD = 180.00 FSD (But under BOGO, the customer pays for only 5 vials and receives 10)
The pricing scroll detects the eligible product and auto-applies the BOGO rule
Promotional flag is shown on the invoice
All free vials are still tracked in inventory and flagged as non-billable
Outcome:
Fennel resells at 14.00 FSD locally, undercutting local healers without harming his margin
80% of the warehouse’s stock clears in under 10 days
Customers receive a free parchment scroll with each pair explaining how to enroll in a potion subscription program
Merchant Feedback: “These flew off the shelf faster than a pixie on pixie dust,” Fennel said. “The free vial got them through the door. The quality brought them back.”
WORKED EXAMPLE: VIP Customer Pricing – Dried Meats for Mike’s Meals
Context: Mike’s Meals, a premier provisioning company based in Baldur’s Gate, supplies rations to adventuring companies, merchant caravans, and city guards across the Western Heartlands. As a certified VIP Client of the Waterdeep Trading Company, Mike’s account is flagged for automatic pricing advantages due to high order volume, timely payments, and long-standing contract terms.
Product Details:
Item: Smoked Boar Jerky (standard travel ration)
Standard Price per Serving: 3.00 FSD
VIP Discount Rate: 10%
Monthly Standing Order: 100 servings
Standard Cost Without VIP Pricing: 3.00 FSD × 100 = 300.00 FSD
Discounted VIP Price Calculation: 300.00 FSD × 10% = 30.00 FSD discount Total After VIP Discount:270.00 FSD
System Behavior: When the order is logged through the Trade Network Stone (TNS), the account identifier is matched to Mike’s VIP profile. Pricing scrolls auto-adjust and apply a VIPPRC-10 incentive code on the sales order.
Additional Perks:
Priority pick and pack in the Baldur’s Gate warehouse
Free crate reinforcements for fragile shipments
Quarterly rebate of 2% based on total annual spend
Operational Note: The VIP rate is not visible to general customers and is stored under tiered pricing matrices in the Company’s Incentive Ledger.
Customer Feedback: “We’re provisioning twelve expeditions this tenday,” said Mike, founder of Mike’s Meals. “That 30 gold stays in my pouch and buys healing poultices. WDTC keeps my margins strong.”
WORKED EXAMPLE: Bundle Pricing – Adventurer’s Survival Set
Context: The Waterdeep Trading Company partners with Lara’s Fine Fabrics and More to produce a travel-ready Adventurer’s Survival Set. This bundled kit includes essential gear commonly purchased together at the start of expeditions, targeting both solo wanderers and company supply officers.
Bundle Contents:
1 Woven Satchel (reinforced canvas with leather tie)
10 Trail Rations (jerky, dried fruit, waybread)
1 Waterskin (holds 2 quarts, sealed with pine resin)
Individual Prices (If Purchased Separately):
Woven Satchel: 12.00 FSD
Trail Rations (10 × 1.25 FSD): 12.50 FSD
Waterskin: 2.00 FSD Total Standalone Cost:26.50 FSD
Bundle Offer Price: 20.00 FSD per set Bundle Savings: 26.50 – 20.00 = 6.50 FSD Percentage Savings: 24.5%
Sales Mechanics:
The bundle is given a single item number in the inventory master (ADVSURV-BNDL)
All components are consumed in stock upon sale via Kit Disassembly Logic
Discounts are shown at the kit level, not on individual lines
Promotion Strategy: A small parchment tag attached to the satchel reads:
“May your rations stay dry and your boots stay moving. This bundle saves coin and time, just like a true adventurer should.”
Outcome:
300 kits sold within a week of the Harvest Moon Festival
Popular among novice adventurers and independent rangers
Warehouse space freed up by moving bulk trail ration stock
Merchant Feedback: “These bundles practically sell themselves,” said Lara. “And they keep my satchel line moving through the slow season.”
WORKED EXAMPLE: Aging Inventory Reprice – Willow Slap Wine in Baldur’s Gate
Context: The Waterdeep Trading Company maintains a cellar depot just outside the Black Dragon Gate in Baldur’s Gate, used to store high-end consumables and luxury items. One particular item, Willow Slap Wine, a strong white varietal from the Greenfields, has lingered longer than expected due to an overstock error and a sudden swing in market preference toward red fruit wines.
With the shipment unsold for over 180 days (well beyond the 90-day optimal turnover), it is flagged for Aging Inventory Reprice by the system’s Inventory Valuation Scroll.
Adjusted Price Calculation: 12.75 FSD × 25% = 3.19 FSD discount New Clearance Price:9.56 FSD per bottle
Inventory on Hand: 94 bottles across 3 warehouse racks
System Actions:
The pricing engine applies incentive code AGEDISC-25
Bottles are reclassified from “Standard” to “Clearance” stock status
Shelf placement updated to “Front of House – Discount Display” in warehouse manifest
Marketing Message: A placard reads:
“Bottled six moons ago, now ripe for your coin. Same vintage, fresher price. While supplies last.”
Outcome:
72 bottles sold within the first 5 days
Remaining inventory used as part of a promotional pairing with cheese bundles
Stock rotation policy updated to flag similar high-tier wines after 60 days
Customer Feedback: “I don’t care if it’s old,” said Gorvik the Dockhand, cradling a bottle. “It’s 9 coin and still sings on the tongue. This’ll do for dinner and dice night.”
WORKED EXAMPLE: Flash Sale – Chill Bear Saison in Silverymoon
Context: The bardic celebration known as Starfall’s Eve descends upon Silverymoon, bringing a wave of travelers, street performers, and celebratory feasts. With a surplus shipment of Chill Bear Saison ale arriving unexpectedly from the Ice Lakes region, the Waterdeep Trading Company sees an opportunity to capitalize on the festivities.
The warehouse in Silverymoon initiates a 3-day Flash Sale tied directly to the festival, both to drive volume and to avoid cold storage costs on surplus stock.
Product Details:
Item: Chill Bear Saison (6-pack of seasonal ale)
Standard Price: 6.14 FSD per pack
Flash Sale Price: 4.50 FSD per pack
Sale Duration: 3 days only
Limit: 2 six-packs per customer, per day
Inventory on Hand: 180 six-packs
Flash Sale Mechanics:
Sales ledger updated with event code FLASHSTAR-SMY
Magical ink on shelf labels changes color during active flash periods
Clerks are issued enchanted click-beads to track customer quantity limits at point of sale
Pricing Calculation for a Customer Purchase: 2 six-packs × 4.50 FSD = 9.00 FSD Compared to normal price: 2 × 6.14 = 12.28 FSD Customer Savings: 3.28 FSD per transaction
Festival Tie-In Message:
“Celebrate Starfall’s Eve with a chilled mug of lake-sprung brew. Priced to dance off the shelves, for three days only!”
Outcome:
Entire inventory of 180 six-packs sold in under 48 hours
Additional foot traffic to WDTC’s booth increased sales of salted nuts, cheese wedges, and corked drinking horns
Sale flagged as a success and archived for reuse during Shieldmeet
Customer Feedback: “I came for the lute fights, but stayed for the ale,” said Harvala Moonsong, a traveling performer. “I bought two packs, then came back in a cloak pretending to be my own sister to buy two more.”
WORKED EXAMPLE: New Product Launch Price – Crystallized Honey Brandy in Waterdeep
Context: A newly commissioned distillery out of the Golden Hills introduces Crystallized Honey Brandy, a gleaming spirit infused with slow-melted gnomish sugar crystals and bee-stirred honeycomb. The Waterdeep Trading Company secures exclusive rights to its distribution and launches the product in Waterdeep’s Trades Ward, timed with the mid-season Guildhall Market.
To encourage trial purchases, the item is assigned a 30-day Launch Price, lower than its expected long-term retail value.
Item registered in inventory master with pricing flag LAUNCH-30D
Launch price is valid only in Waterdeep and select trial markets
After 30 days, price auto-adjusts via scheduled pricing scroll refresh
Shelf Signage Message:
“New arrival from the Golden Hills! One month only. First sip sweetens the tongue, second sip stirs the soul. Try it now for 19 coin.”
Promotional Enhancements:
Free tasting station at the Trades Ward
Purchase includes a miniature branded crystal stirrer (cost offset by marketing fund)
Outcome:
238 of 300 bottles sold during the 30-day launch window
Customer reviews submitted via sending stones prompted a second order
Item promoted to full release in Neverwinter and Athkatla based on pilot success
Customer Feedback: “I bought it because the bottle looked like a dwarven temple. I bought more because it tasted like sunrise in a beehive,” said Elgren Stormbrew, a dwarven jeweler.
WORKED EXAMPLE: Customer Group Discount – Twilight Wheat Ale for Innkeepers
Context: The Waterdeep Trading Company classifies customers into trade-based groups using magical scroll identifiers linked to their account profiles. One such group is INNKEEPERS-GUILD, which includes licensed taverns, inns, wayhouses, and mead halls registered with the local hospitality guilds.
The product in focus is Twilight Wheat Ale, a crisp beverage brewed from moonlight-harvested wheat near Baldur’s Gate, popular among both travelers and townfolk alike.
Product Details:
Item: Twilight Wheat Ale (bottled, 500 ml)
Standard Price per Bottle: 3.26 FSD
Customer Group: INNKEEPERS-GUILD
Group Discount Rate: 10%
Order Size: 100 bottles (5 crates of 20)
Standard Pricing Calculation: 3.26 FSD × 100 = 326.00 FSD
Discounted Pricing Calculation: 10% of 326.00 = 32.60 FSD Final Price After Discount:293.40 FSD Effective Unit Price: 2.93 FSD
System Behavior:
Account flagged under INNKEEPERS-GUILD using embedded tags in the customer ledger
Upon order entry, pricing engine auto-applies discount via rule GRPDISC-INN10
No clerk intervention required, discount is embedded in the pricing tier
Additional Benefits to Group Members:
Priority access to seasonal variants
Early notification of price shifts
Eligibility for festival co-branding and signage
Marketing Message to Group:
“Innkeepers of Faerûn, your casks flow more freely when backed by trade loyalty. Enjoy 10% off Twilight Wheat Ale all season long, exclusively for our partners in hospitality.”
Outcome:
Repeat orders from inns in Elturel and Beregost surged 18%
Stronger ties with the Faerûnian Hospitality Guild led to exclusive rights for two new product launches
Minimal sales effort required due to embedded logic and group association
Customer Feedback: “Twilight Wheat keeps our patrons seated, singing, and returning,” said Barla Fenn, owner of The Copper Tankard. “And the discount helps me keep my own books in the black.”
WORKED EXAMPLE: Territory-Based Pricing – Pure Lord Cider in Icewind Dale and Calimport
Context: Pure Lord Cider, brewed with frost apples from the Greypeak foothills, is widely consumed across the Sword Coast. Its price, however, is anything but fixed. While cities near the orchards enjoy plentiful stock and low shipping fees, far-flung regions, especially those in arid climates, experience pricing shifts based on distance, scarcity, and magical preservation costs.
The Waterdeep Trading Company employs a Territory Pricing Engine to account for such factors. Below, we examine pricing for two drastically different cities: Icewind Dale and Calimport.
Product Details:
Item: Pure Lord Cider (750 ml bottle, frost-sealed)
Customer Note: “Standard pricing due to proximity and regular caravan delivery via Silverymoon Way.”
Calimport Pricing
Base Price: 7.08 FSD
Adjusted Price: 7.08 FSD × 1.25 = 8.85 FSD
Modifier Explanation:
Arcane chillers required to prevent spoilage in desert transit
Portal waystations taxed by the Calimport Arcane Freight Consortium
No local orchards = full import reliance
Label Tag (Calimport):
“Imported Cold – Enchanted for freshness. Pricing reflects rarity and distance.”
System Actions:
Sales order origin triggers region code CAL-TERR25
Modifier stack applied via regional price rules
Inventory tagged as High-Value Consumable
Outcome:
Icewind Dale moves volume and supports bundling with other beverages
Calimport sells at a luxury price point, but with fewer volume discounts
Local taverns in Calimport use this rarity to their advantage, charging over 12 FSD per bottle
Customer Feedback: “This cider makes it through the desert, cold and crisp. I’d pay ten coin just for the taste of winter,” said Rasheem al-Fael, proprietor of The Sapphire Hookah.
WORKED EXAMPLE: Arcane Subscription Pricing – Potion of Vitality in Neverwinter
Context: The Neverwinter Enclave of Rangers requires a steady monthly supply of Potions of Vitality, used to sustain patrols through the crags and forests beyond the city walls. Rather than place separate orders each tenday, the Enclave opts into the WDTC’s Arcane Subscription Program, a magical agreement that ensures auto-replenishment, predictable costs, and loyalty-based pricing.
Product Details:
Item: Potion of Vitality (minor grade, restores endurance over time)
Standard Retail Price: 35.00 FSD per vial
Subscription Term: 12 months
Monthly Delivery: 10 vials
Subscription Discount Rate: 18%
Additional Benefit: Priority delivery via winged courier sigil
Standard Annual Cost Without Subscription: 35.00 FSD × 10 vials × 12 months = 4,200.00 FSD
Total Savings Over 1 Year: 4,200.00 – 3,444.00 = 756.00 FSD
System Setup:
Customer agreement flagged with ARC-SUB-VIT
Orders auto-generated by the Monthly Requisition Ritual
Invoices billed at fixed rate regardless of market fluctuations
Cancellation requires a 60-day notice scroll and a dispel ritual overseen by the WDTC Pricing Scribe
Subscription Contract Clause (Excerpt):
“The undersigned shall receive no less than ten (10) units of said potion per moon cycle, sealed and certified, with price fixed by the initial agreement, guarded against escalation by binding glyph.”
Outcome:
The Enclave receives potions without delay or need for reordering
Annual savings allow for reallocation of coin to rare equipment purchases
WDTC secures guaranteed monthly revenue and optimized production planning
Customer Feedback: “We don’t miss a patrol or potion anymore,” said Captain Ellana Wildleaf. “WDTC’s subscription saved more than coin, it saved us from rationing in the cold months.”
WORKED EXAMPLE: Trade-In Credit – Merchant Scale Upgrade in Elturel
Context: Dandor’s Weights & Wares, a general goods merchant in Elturel, uses a decade-old steel scale for weighing coin, spice, and contract bundles. With enchantment stability beginning to flicker and the weight stones becoming uneven, Dandor seeks a replacement.
The Waterdeep Trading Company offers a new Weight-Calibrated Scale enchanted with permanent leveling runes and improved ledger compatibility. Rather than discard the old scale, Dandor uses WDTC’s Trade-In Credit Program to reduce his purchase cost.
Product Details:
New Item: Precision Rune-Weighted Scale (enchanted, ironwood base)
List Price: 60.00 FSD
Old Scale Value (Appraised): 10.00 FSD
Trade-In Credit Applied: Full appraised value deducted
Final Price Paid: 50.00 FSD
System Behavior:
Sales clerk logs the product return into the Item Recovery Register
Trade-in ID: TRDCRD-SCL10 is applied to the new order
Old scale is transferred to Rework Division for potential resale, scrap, or apprentice training stock
Ledger Entry (Simplified):
Inventory Out (New): 60.00 FSD Inventory In (Used): 10.00 FSD Customer Charged: 50.00 FSD
Customer Note on Invoice:
“Thank you for participating in WDTC’s Trade Advancement Program. Your old item has been credited 10.00 FSD toward this purchase.”
Outcome:
The merchant receives a modern, calibrated scale at a discounted rate
The old unit enters the reclamation stream for additional margin recovery
WDTC deepens merchant trust while promoting higher-tier equipment
Customer Feedback: “I didn’t expect my old rust-bucket to be worth anything. Getting ten coin off the new scale made it an easy decision,” Dandor said, adjusting the new balance with a grin.
WORKED EXAMPLE: Early Payment Discount – Invoice Settlement by the Silverymoon Academy
Context: The Academy of Natural and Arcane Sciences in Silverymoon places a bulk order for enchanted laboratory glassware and alchemical reagents. As a well-funded institution with disciplined bookkeeping and predictable treasury cycles, the Academy qualifies for WDTC’s Early Payment Discount program.
This incentive offers a modest discount when full payment is received ahead of standard terms, common among large customers with steady income streams.
Invoice Details:
Order Value: 500.00 FSD
Standard Terms: Net 30 (payment due in 30 days)
Early Payment Window: Within 10 days of invoice
Discount Rate: 2%
Calculation of Early Payment Discount: 500.00 FSD × 2% = 10.00 FSD discount Total Amount Due if Paid Early:490.00 FSD
Academy Payment Timing: Invoice issued on 1st of Eleint Payment received on the 7th of Eleint → Within early payment window Discount applied automatically
System Behavior:
The invoice includes notation: “2% discount if paid within 10 days”
Upon receipt of payment, the system applies rule EARLYDISC-2 and closes the transaction at 490.00 FSD
Cashflow updated in treasury ledger under “Accelerated Settlement Gains”
Invoice Footer Message:
“Thank you for your prompt payment. Your 2% early settlement discount has been applied.”
Outcome:
The Academy saves 10.00 FSD on the transaction
WDTC receives coin 23 days ahead of schedule
This liquidity is used to expedite delivery payments to the artisan glassmakers in Hillsfar
Customer Feedback: “Our quarterly budget appreciates even a small discount,” said Scholar-Magister Tenelra Voss. “Plus, we like to be in good standing with our reagent supplier.”
Final Thoughts
The Waterdeep Trading Company does not treat pricing as a static tag but a living enchantment. Discounts become levers of influence, incentives become tools of loyalty, and pricing itself becomes a spell of persuasion cast across the markets of Faerûn.
Whether it’s a struggling merchant clearing crates of stale cider or a noble court seeking a volume deal on mead for a wedding feast, pricing strategy transforms commerce into an art form.
Want to design your own manufacturing models in Faerûn?
At the Waterdeep Trading Company, efficiency is the difference between a satisfied customer and a fireball in the storeroom. One of the simplest but most powerful tools we’ve implemented in Dynamics 365 to streamline inventory lookup is the Search name field — and we’re not just typing in product names. We’ve turned it into a structured hierarchy system that lets us search smarter, not harder.
What Is the “Search Name”?
In Dynamics 365, the Search name is a simplified identifier that helps users quickly find products without needing to remember the exact item number or full description. It’s used in lookups across sales orders, purchase orders, inventory journals, and more. But by default, it’s just text.
We decided to turn that text into a strategy.
Hierarchy-Based Naming Convention
Instead of entering plain names, we use uppercase, hyphenated codes that follow a logical structure. Each segment represents a tier of product classification — from category to product type to material and variant.
Format
[CATEGORY]-[PRODUCT]-[MATERIAL]-[VARIANT]
This makes every search name:
Readable
Standardized
Filterable by segment
Segment Breakdown
Example Table
With this structure, a warehouse user typing STRG- can immediately filter to everything in the storage category. Type WPN-SWRD- and you’re only seeing swords. It’s as if your product list is pre-sorted by magic.
Why Uppercase?
We use uppercase exclusively for visual cleanliness and consistency. Mixed-case names slow down scanning and increase the chance of typos during data entry. When everyone follows the same uppercase-hyphenated structure, there’s less room for error — and a lot less shouting across the warehouse.
Benefits
Faster product lookups in order entry and warehouse activities
Simpler training for new users who only need to learn the hierarchy
Improved filtering during Excel exports, reports, and analytics
Consistency across environments, especially when syncing with e-commerce or external systems
Getting Started with Search Name Hierarchies
If you’re implementing or cleaning up your item master, now’s the time to adopt a structured search name strategy. Start by building a controlled vocabulary of category, product, material, and variant codes. Then roll it out in mass updates or via Excel templates.
Want to master more hidden inventory tricks like this? Grab the guides at adnd365.com/start and explore the public instance of our database at public.adnd365.com using
The Waterdeep Trading Company, headquartered in the bustling Sword Coast metropolis of Waterdeep, offers everything an adventurer might need—from enchanted aprons to armor blessed by clerics of Lathander. But as their product lines expanded across Faerûn, their quill-and-scroll inventory system simply couldn’t keep up. That’s when they turned to Microsoft Dynamics 365—and specifically, product category hierarchies—to bring order to their magical chaos.
Why Category Hierarchies Matter
In Dynamics 365, category hierarchies are like the enchanted blueprints of your product catalog. They give structure, meaning, and power to how products are organized, priced, reported on, and sold.
Instead of listing all products in a single long scroll, Waterdeep Trading Company now classifies them into structured Sales Category Hierarchies that mirror their physical shelves and trading logic.
The Anatomy of Waterdeep’s Product Categories
Here’s a peek at their current Sales Category Hierarchy:
Each node isn’t just a label—it’s a functional container that drives how products behave in the system.
Magic Behind the Structure
Here’s why Waterdeep’s team, led by Greta Ironfist, built such a comprehensive structure:
Relevant Attributes Per Category: Different products need different data. A chainmail vest needs a defense rating, while a cook’s apron requires a heat resistance level. By assigning attribute groups to each category, they ensure each product has the right fields—no more, no less.
Faster Sales and Smarter Filtering: Sales agents no longer scroll endlessly through product lists. Using Released Products by Category, they can filter by Clothing > Aprons or Weapons > Daggers instantly—whether they’re taking an order in-store or via speaking stone.
Discount and Pricing Control: During the annual “Goblin Week” sale, the system automatically applies discounts to all Armor category items. There’s no need to tag each item—just one discount rule tied to the category node.
Clean Procurement Workflows: Vendor relationships are tied to procurement categories. This ensures the Baldur’s Gate Blacksmiths Guild doesn’t get accidental orders for bathrobes. Procurement policies guide buying by category, preventing mistakes and keeping supplier alignment sharp.
Crystal-Clear Reporting: Need to know which product family brought in the most gold last quarter? Category-based reports break down performance by line: Armor vs. Weapons vs. Clothing.
Real Example: Bells & Aprons
Using product codes like 10002-BELL and 10001-APRN, products are linked to the Bells and Aprons nodes under Clothing. This categorization powers everything from pricing to trade agreement journals to magical inventory counts.
A System Built for Growth
As new products are added—say Clothing > Cloaks or Weapons > Polearms—they simply extend the existing hierarchy. Each addition inherits the right behaviors, pricing rules, and attributes without manual duplication.
This system ensures that the Waterdeep Trading Company is prepared not just for tomorrow’s adventures, but for a full-scale expansion across the Western Heartlands and beyond.
Ready to organize your own product catalog with spellbinding efficiency? Grab the Advanced Dungeons & Dynamics 365 guides at adnd365.com/start.
Want to explore Waterdeep’s real system? Request access to the live demo environment at https://public.adnd365.com using:
The Waterdeep Trading Company isn’t just a general store, it’s the central nerve of a supply empire that keeps adventurers, merchants, and mystics stocked from Luskan to Calimport. With customers as diverse as noble houses, guild outposts, and lone rangers, the company needed a way to structure its rapidly growing operations while maintaining financial precision and strategic agility.
Enter Business Units, Departments, Sales Channels, and Cost Centers, the quartet of operational clarity in Microsoft Dynamics 365 Finance.
Business Units: Territory and Purpose
The company organizes its operations by Business Unit to reflect both geographic footprint and strategic focus. Each Business Unit represents a distinct operational hub, responsible for local inventory, staffing, and margin targets.
Each Business Unit tracks its own revenue and costs, enabling financial reporting at both unit and consolidated levels.
Departments: Role and Function
Where Business Units define where things happen, Departments define who does the work. These are the roles and internal teams that perform the operations of the business, often cutting across units.
Departments help structure responsibilities for budgeting and workforce management within each Business Unit.
Sales Channels: Who They Serve
Sales Channels represent the customer-facing paths through which the Waterdeep Trading Company moves its goods. These span traditional commerce and some… less conventional routes.
Using sales channels allows for segmented revenue reporting, discounting strategies, and tailored marketing campaigns.
Cost Centers: Where Money Is Spent
To control expenses and improve budgeting accuracy, the company uses Cost Centers to group similar operational expenditures. These are typically aligned with departments but offer finer granularity, especially in joint projects or field operations.
This structure supports top-down and bottom-up budgeting, with financial dimensions tracking expenses per cost center across all Business Units.
Why It All Matters
By organizing the Waterdeep Trading Company with Business Units, Departments, Sales Channels, and Cost Centers, Greta Ironfist and her team achieve:
Granular reporting: See profit margins by branch, track department-level performance, or monitor sales channel velocity.
Smarter budgeting: Allocate funds where they’re needed and track actuals against plans with visibility by dimension.
Accountability: Department heads and business unit managers can be held responsible for outcomes.
Scalability: As the company expands (hello, Chult!), new units, departments, or sales paths can be added without disrupting the existing structure.
A Realm in Balance
The Waterdeep Trading Company didn’t become Faerûn’s top outfitter by accident. Through clever use of Dynamics 365’s organizational structures, it tames the chaos of commerce—even in a world of dragons, demons, and duty-bound auditors.
So whether you’re running potions to a necromancer or hempen rope to a ranger, remember: structure is the silent partner in every successful adventure.
Start your own implementation journey today. Buy the full configuration guide at adnd365.com/start
🔍 Want to explore the live Faerûn demo environment? Log in to the public read-only view at https://public.adnd365.com
In the bustling cities of the Sword Coast—from Waterdeep’s merchant squares to the shady alleys of Luskan—one thing is clear: magic sells. Whether you’re a potion purveyor, an arcane gear supplier, or an enchanted scroll distributor, knowing which magical products bring the highest margins is critical for growth.
In this post, we’re using Dynamics 365’s Product Profitability Reports, Item Sales Margins, and Sales by Product Category to reveal the top 10 most profitable magical items currently moving through the Faerûnian economy.
How We Calculated Profitability
We pulled data from the Waterdeep Trading Company’s Dynamics 365 environment, combining:
Sales revenue from the Order to Cash module
Cost of Goods Sold (COGS) via Inventory Valuation
Gross Margin % based on item group (Magical Items, Potions, Scrolls, etc.)
Profit = (Sales – COGS) × Volume Sold
Top 10 Magical Products by Profit
Key Insights for Inventory & Trade Managers
Healing Potions dominate—they’re cheap to produce, high in volume, and in constant demand. Set reorder thresholds in your Item Coverage settings.
Arcane Saddles are low-volume, high-margin—ideal candidates for Trade Agreements with aerial suppliers and custom production runs.
Scrolls offer recurring revenue—track parchment, ink, and scribing labor as bundled production cost drivers.
Teleportation services represent a unique product-as-a-service model—handled as a non-stock item but linked to high-value invoicing and permit records.
Dynamics 365 Tips to Track Magical Profitability
Use Item Groups and Product Categories to segment magical vs. mundane goods.
Enable Standard Costing or FIFO for better margin clarity on alchemical and enchanted items.
Run the “Gross Margin by Product” report in Cost Management > Inquiries and Reports.
Tag products with attributes like Arcane Level, Guild Certification, or Spell School to enable dimensional profitability analysis.
What’s Next?
If you’re a trading company operating across Faerûn, your profit isn’t just about what you sell—it’s about knowing what sells best, to whom, and how consistently. With Dynamics 365, you have the tools to track product-level performance across every district, ward, and plane.
Curious what the margins are on a Flask of Faerie Fire or a Golem Core? Start building your magical profitability matrix today with our Bare Bones Templates and Fantasy Item Master demo packs at adnd365.com/start.
When Greta Ironfist founded the Waterdeep Trading Company, she knew that managing the flow of goods across the Sword Coast would be just as critical as sourcing rare herbs or distilling the finest spirits. In Faerûn, transportation isn’t just about moving cargo — it’s about surviving treacherous roads, stormy seas, and even aerial piracy.
Today, the Waterdeep Trading Company powers its shipping operations with Dynamics 365 Supply Chain Management – Transportation Management. Let’s take a closer look at how they model freight rating and routing to thrive in a world of dragons, bandits, and booming trade.
Setting Up Rating Structures: Costing Freight the Faerûnian Way
In Dynamics 365 Transportation Management, Rate Masters and Rate Charges define how costs are calculated. Waterdeep Trading Company configures their freight rates using both weight and distance (leagues traveled) — just like a merchant caravan master would charge in the Realms.
Each of the company’s preferred carriers is modeled with custom rating rules:
Example Setup in D365:
Rate Base Type: Weight × Distance
Rating Method: Rate engine calculates total cost during load planning.
Freight Classes: Different categories for standard goods, perishables, and magical cargo (surcharge applied).
Route Planning: Choosing the Best Way to Move Goods Across Faerûn
Using Rate Route Plans in Dynamics 365, Waterdeep Trading Company defines how goods are routed:
Each route includes transit times, distance calculations, and alternate routing if a carrier is unavailable (for instance, if pirate attacks delay a sea convoy).
Example Setup in D365:
Hub Types: Seaport Hub (Waterdeep Dock Ward), Airship Port Hub (Sky Dock), Caravan Hub (Trade Gate)
Transit Distance Tables: Leagues between key hubs calculated to automate costing.
Route Guides: Preferences for low-cost (sea) vs. high-speed (air).
Freight Execution: Dynamic Mode Selection in Action
When a sales order is created (say, shipping 300 lbs of moonshine to Baldur’s Gate), D365 automatically:
Calculates shipping cost for each mode:
IronWheels: 300 lbs × 0.1 gp × 250 leagues = 7500 gp
Gryphon Air: 300 lbs × 0.16 gp × 250 leagues = 12,000 gp
Sword Coast Sea Freight: 300 lbs × 0.015 gp × 250 leagues = 1125 gp
Suggests the best option based on customer priorities (cost vs. speed).
Books the load, assigns the carrier, and generates a bill of lading — whether that’s by wagon, gryphon, or ship!
Faster Customer Deliveries: Urgent magical scrolls or potions ship via Gryphon Air.
Optimized Resource Allocation: Caravans are filled smartly, reducing deadhead miles on the Trade Way.
Resilient Network: Dynamic route fallback keeps the business moving even during pirate attacks or magical storms.
Why Rating and Routing Matter in Faerûn and Beyond
Transportation Management in Dynamics 365 lets Waterdeep Trading Company navigate the complexities of Faerûn’s trade like seasoned merchant princes. By building smart rating structures and flexible routing plans, they can deliver anything, anywhere — whether it’s barrels of moonshine, crates of enchanted herbs, or bundles of rare textiles.
And the best part? Greta Ironfist always knows that no matter the obstacles, Waterdeep Trading Company will deliver.
Want to master Transportation Management for your own Faerûnian trading company (or your real-world supply chain)?
Download the Advanced Dungeons & Dynamics 365 Guides at adnd365.com/start and embark on your own logistics adventure!
A Tinkerers Notebook 