Pricing vocabulary 2

Pricing Vocabulary and Terms

The Sniffie Pricing Vocabulary and Terms is a collection of essential vocabulary used in retail and ecommerce pricing and marketing products. The pricing vocabulary is a brief overview on how the terms are defined and how to use different terms and techniques in pricing. Read the articles below!

Advertised Price used in Campaigning

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 media. Therefor list price, retail...

Cost Price

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 sum of outlays that are...

Discount Containment

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, it’d be their love for...

Expert Judgment in Pricing

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 products can be...

Initial Markup or IMU

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 -which is also...

Keystone Pricing

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...

Market Pricing

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 values so that you keep...

Minimum advertised pricing strategy (MAP)

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 harmonized level....

Original Price

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 a pricing technique that’s used by vendors...

Pocket price

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 price is used to determine...

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 The elasticity levels are: Perfectly inelastic (no change...

Wholesale price

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 the manufactures in bulk, the...

Bundle Pricing

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 technique where you bundle products...

Cost Pricing or Cost Plus Pricing

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....

Dynamic Pricing and Dynamic Reacting in Pricing

Dynamic Pricing DYNAMIC PRICING MEANS THE RETAILER IS AGILE REACTING...

Incremental Customer Value

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...

Key basket in Pricing

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 in pricing is oftenly used...

List price

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...

Markup Pricing

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 a markup to the cost...

Nonlinear Pricing

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 seller with a lower per unit price...

Parallel Export

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...

Premium Pricing

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 such a strong brand. In...

Price Lining

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 a marketing tool, where items...

Competitive Match Pricing Methodology

Competitive Math Pricing Methodology COMPETITIVE MATCH PRICING METHODOLOGY IS CHANGING PRICES ACCORDING TO MARKET CHANGES This means using competitor pricing...

Custom Value in Pricing

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 of value to a product....

Ex Works Pricing (EXW)

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. This is often...

Incremental Pricing Revenue

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

Key Value Items (KVI)

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 are one or more products...

Manufacturer’s Suggested Retail Price (MSRP)

Manufacturer´s Suggested Retail Price Manufacturer’s Suggested Retail Price is a price the manufactures believe that the products should be sold...

Minimum Advertised Price (MAP)

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...

Odd Pricing

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 technique that’s used quite often,...

Penetration Pricing

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 market is never easy. This...

Price Band Analysis

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 amount of customers that pay...

Price Matching

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 can easily find the bottom...

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Pricing Vocabulary and Terms

The Sniffie Pricing Vocabulary and Terms is a collection of essential vocabulary used in retail and ecommerce pricing and marketing products. The pricing vocabulary is a brief overview on how the terms are defined and how to use different terms and techniques in pricing. Read the articles below!

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