Key Pricing Terms Clearly Explained
A growing collection of pricing and commercial strategy definitions designed to make complex topics easier to understand.
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What Is Rebate Management
Rebate management is the set of processes a company...
Read definitionWhat Is Price Variance
Price variance is the spread in prices a company...
Read definitionWhat Is Price Fencing
Price fencing is the use of rules, conditions, and...
Read definitionWhat Is List Price
List price is the published, standard price of a...
Read definitionWhat Is Price Localization
Price localization is the practice of setting different prices...
Read definitionWhat Is Grandfathered Pricing
Grandfathered pricing is the practice of letting existing customers...
Read definitionWhat Is a Value Metric
A value metric is the unit a company charges...
Read definitionWhat Is a Hybrid Pricing Model
A hybrid pricing model combines two or more pricing...
Read definitionWhat Is Outcome-Based Pricing
Outcome-based pricing ties what a customer pays to the...
Read definitionWhat Is Economic Value to the Customer
Economic value to the customer, or EVC, is the...
Read definitionWhat Is the Gabor-Granger Method
The Gabor-Granger method is a pricing research technique that...
Read definitionWhat Is the Van Westendorp Price Sensitivity Meter
The Van Westendorp Price Sensitivity Meter is a survey-based...
Read definitionWhat Is Price Benchmarking
Price benchmarking is the practice of comparing your prices...
Read definitionWhat Is Markup Pricing
Markup pricing is a method that sets price by...
Read definitionWhat Is Decoy Pricing
Decoy pricing is a packaging tactic that introduces a...
Read definitionWhat Is Pricing Analytics
Pricing analytics is the use of transaction, customer, and...
Read definitionWhat Is a Pricing Strategy Consultant
A pricing strategy consultant is a specialist who helps...
Read definitionWhat Is a Price Increase Strategy
A price increase strategy is the structured plan a...
Read definitionWhat Is Price Realization
Price realization is the percentage of list price a...
Read definitionWhat Is Pricing Power
Pricing power is a company’s ability to raise prices...
Read definitionWhat Is Margin Erosion
Margin erosion is the gradual decline of a company’s...
Read definitionWhat Is Discount Management
Discount management is the set of policies, approvals, and...
Read definitionWhat Is a Price Waterfall
A price waterfall is an analytical framework that traces...
Read definitionWhat Is Pocket Price
Pocket price is the revenue a company actually keeps...
Read definitionWhat Is Revenue Leakage
Revenue leakage is the gap between the revenue a...
Read definitionWhat Is Enterprise Pricing
Enterprise pricing is a custom, negotiated pricing approach used...
Read definitionWhat Is Per-User Pricing
Per-user pricing is a model that charges customers based...
Read definitionWhat Is Flat Rate Pricing
Flat rate pricing is a model that charges a...
Read definitionWhat Is Tiered Pricing
Tiered pricing is a strategy that groups an offering...
Read definitionWhat Is Usage-Based Pricing
Usage-based pricing is a monetization model that charges customers...
Read definitionWhat Is Price Skimming
Price skimming is a pricing strategy that launches a...
Read definitionWhat Is Good-Better-Best Pricing
The most useful thing good-better-best pricing does happens before...
Read definitionWhat Is Conjoint Analysis
Ask a buyer what they want and they will...
Read definitionWhat Is Competition-Based Pricing?
Competition-based pricing is a strategy that sets prices primarily...
Read definitionWhat Is Value-Based Pricing
A price floor and price ceiling are boundaries that...
Read definitionWhat Is Price Floor and Price Ceiling
A price floor and price ceiling are boundaries that...
Read definitionWhat Is Dynamic Discounting
Dynamic discounting is a pricing approach where discounts are...
Read definitionWhat Is Skimming Pricing Strategy
Skimming pricing strategy is a pricing approach where a...
Read definitionWhat Is Charm Pricing
Charm pricing is a pricing technique where prices are...
Read definitionWhat Is Price Ladder Strategy
Price ladder strategy is a way of structuring pricing...
Read definitionWhat Is Subscription Pricing Model
A subscription pricing model is a pricing approach where...
Read definitionWhat Is Freemium Pricing
Freemium pricing is a model where a company offers...
Read definitionWhat Is Pay-Per-Use Pricing
Pay-per-use pricing is a pricing model where customers are...
Read definitionWhat Is Price Sensitivity Analysis
Price sensitivity analysis is the process of measuring how...
Read definitionWhat Is Price Anchoring
Price anchoring is a pricing method where the first...
Read definitionWhat Is Bundling Pricing Strategy
Bundling pricing strategy is the practice of combining multiple...
Read definitionWhat Is Price Discrimination
Price discrimination is a pricing strategy where a company...
Read definitionWhat Is Premium Pricing
Premium pricing is a strategy where a company sets...
Read definitionWhat Is Penetration Pricing
Penetration pricing is a strategy where a company sets...
Read definitionWhat Is Cost-Plus Pricing
Cost-plus pricing is a pricing method where a company...
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