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I am sorry if this is a noobish question. I just wanted clarification on whether I must spend the points to upgrade to a nob in my kommando squad before I replace him with the extra points from Snikrot, or does the cost of Snikrot cover the points it costs to upgrade to a nob? Thank you in advance!

You do not need to pay the points to upgrade it to a Nob first. I don't have the Ork codex handy but if it works like any of the other special "upgrade" characters than no you do not need to pay the points. If, however, it says "Upgrade one Nob to Snikrot" then yes you do need to pay the upgrade points first.

Note: I know your kind of new to this site but try to avoid posting points values here GW doesn't like it when people do that and the site could get in trouble. Just letting you know for future reference.

Woops I apologize, I'll edit the post.

It uses the word "instead of a nob" without quoting more from the codex and risking any further

You pay for Snikrot INSTEAD OF paying for a nob. So you dont pay to upgrade first and then pay for snikrot, you pay for Snikrot alone.

This commonly causes problems so I'll list a few totals to cement the position.
Sniktrot Squads
Min points squad - 135 - Total squad size = 6
Min with best toys - 165
Max points naked - 235
Max points with toys- 265 - Total squad size = 16

Ahhh, so Snikrot himself does not count as a Kommando, allowing us to use the max squad size of Kommandos to fit all the regular ones in, and on top of that we add Snikrot. I had assumed that since you're turning one of the slots of kommando into nob/snikrot, you could have a max squad of 15 including Snik. Guess not. Thanks for the clarification everyone!