Pricing vocabulary

Advertised Price ADVERTISED PRICE IS A PRICE USED IN ADVERTISEMENT. It is a price that is advertised by the retailer or eCommerce site in any

Bundle Pricing BUNDLE PRICING IS A SIMPLE TECHNIQUE TO COMBINE PRODUCTS AND SELL THOSE AT A LOWER PRICE PER ITEM. It is a simple pricing

Competitive Math Pricing Methodology COMPETITIVE MATCH PRICING METHODOLOGY IS CHANGING PRICES ACCORDING TO MARKET CHANGES This means using competitor pricing as a basis of setting

Cost Price COST PRICE IS SIMPLY THE TOTAL AMOUNT OF MONEY A MANUFACTURER WILL SPEND TO PRODUCE A PRODUCT OR SERVICE. It is the total

Cost Pricing or Cost Plus Pricing Cost pricing is used for pricing multiple items at the same time where conventional pricing methods won´t be feasible.

Custom Value in Pricing Custom value is a pricing method that´s used with customized products. Whether you´re selling cars or cakes, customization can add lots

Discount containment When creating a discount, having a proper discount containment strategy is essential. If there is one thing that all customers have in common,

Dynamic Pricing DYNAMIC PRICING MEANS THE RETAILER IS AGILE REACTING TO PRICE CHANGES USING COMPETITOR PRICE MONITORING It is in a general sense, the practice

Ex Works Pricing Ex Works Pricing is used when buyer collects the goods from the sellers warehouse. The goods are then sold without any transportation.

Expert Judgment in Pricing Sometimes, getting an expert judgment in pricing your products is the wisest thing you can do. In some cases, pricing your

Incremental Customer Value Incremental Customer Value in Pricing is the increased revenue resulted by the price increase for any given reason. This is also known

Incremental Pricing Revenue The Incremental Pricing Revenue is the increased revenue resulted by the price increase for any given reason. Incremental pricing is a pricing

Initial Markup or IMU The initial markup is a term used to describe the markup percentage you are using when pricing your products. Initial markup

Key Basket in Pricing Key basket in pricing is a group of important products that are chosen to represent market in some way. Key basket

Key Value Items (KVI) Key value items are products that make a significant contribution to the overall sales of a business. In most cases, there

Keystone Pricing Keystone Pricing is a method where every distribution level doubles the price of a product. If you’re in retail, keystone pricing is a

List Price The price that is advertised as the official price for the product. Usually called the original price or often referred as the manufacturer’s

Manufacturer´s Suggested Retail Price Manufacturer’s Suggested Retail Price is a price the manufactures believe that the products should be sold for. In this amount, the

Market Pricing Market pricing correctly is vital because customers are always looking for the best bargains. Competitive price is done by finding the exact price

Markup Pricing The markup pricing is a technique that’s used by retailers to price multiple products quickly. Also known as cost-based pricing works by adding

Minimum Advertised Price (MAP) Minimum Advertised Price is a price that is given to retailers by producer of goods MAP is the price that retailers

Minimum Advertised Pricing Strategy (MAP) The minimum advertised pricing strategy is a strategy where brand owner or producer keeps their end selling prices at a

Nonlinear Pricing Nonlinear pricing can be used as a broad term to offer discount schemes where different pricing bundles offer higher total revenue for the

Odd Pricing Retailers use odd pricing to create psychological feeling that a price is lower than it actually is. Odd pricing is a psychological pricing

Original Price The original price is used to show what was the original price before price decrease (discount, price change etc.). The original price is

Parallel Export PARALLEL EXPORT IS WHEN A RETAILER BUYS MORE MERCHANDISE THAN THEY NEED AND SELL THE THE EXCESS FOR OTHER RETAILERS. This is a

Penetration Pricing Penetration pricing is a pricing strategy that’s used -as the name suggests- to penetrate a new market. Getting a foothold in a new

Pocket Price Pocket Price is the price from which all discounts, retro payments, coupons etc, that are offered to the buyer, are deducted. The pocket

Premium Pricing Premium pricing means a retailer is consistently pricing their product higher due to competitive advantage. It is mostly used when a company has

Price Band Analysis Price band analysis is used to distinguish the net prices paid per customer. The Price Band Analysis also describes the segments and

Price Elasticity Price elasticity tells you how much a price increase or decrease will impact on the demand of a product. TRY OUT SNIFFIE Overview

Price Lining A comprehensive guide to everything that you need to know about price lining. Price lining, also referred to as product line pricing, is

Price Matching A comprehensive guide to everything that you need to know about price matching. Today we are heavily relying on eCommerce stores where we

Wholesale Price Wholesale Price is the price that a retailer is paying for the wholesaler when buying a product. As wholesalers buy the products from