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.

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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

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Competitive Match Pricing Methodology

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

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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

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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

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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,

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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.

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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

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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

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Incremental Pricing Revenue

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

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initial-markup

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

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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

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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

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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

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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

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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

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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

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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

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nonlinear-pricing

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

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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

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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

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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

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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

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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

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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

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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

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Price Elasticity

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

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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

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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

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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

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