WHY PRICING
EXPERTISE MATTERS?

Our team of experts provides comprehensive expertise in different areas of pricing. We have extensive experience in pricing strategy, pricing analytics, and pricing optimization. Our team is on top of the latest pricing trends and technologies, and can help you unlock the power of pricing to maximize your profits.

1. Cost estimations

2. Competitive analysis

3. Discounts and offers

4. Budgeting

5. Value propositions

6. Subscription models

7. Negotiation

8. Pricing transparency

9. Price optimization

10. Pricing trends

Our pricing glossary is designed to help you understand the different types of pricing. Pricing is a complex and dynamic aspect of running a business, but understanding the most common pricing terms can help you make better pricing decisions. Use these pricing terms as a starting point, but always consider your unique factors, such as customer behavior, industry trends, and competition, before setting your prices. Remember that pricing is not just about making revenue, but also about creating value for  customers and building a profitable and sustainable business.

Name-Your-Price Models: Customers are allowed to suggest the price they are willing to pay for a product or service.

Non-Price Competition: Businesses compete based on factors other than price, such as product quality, customer service, or brand reputation.

Odd Pricing: Prices are set just below a whole number, such as $9.99 instead of $10.00, to create a perception of value.

Odd-Even Pricing: Businesses alternate between odd and even price endings to appeal to different consumer psychologies.

Optional Pricing: Additional product features or services are offered at an extra cost, giving customers the option to customize their purchase.

Overhead Costs: Indirect expenses, such as rent, utilities, and administrative fees, impact the pricing of products and services.

Penetration Pricing: Businesses set low initial prices to quickly gain market share and attract new customers.

Perceived Value Pricing: Prices are based on how much customers believe a product is worth, rather than the actual cost of production.

Perishable Pricing: Prices are adjusted for products with limited shelf life to encourage quick sales and minimize waste.

Premium Pricing: High prices are set to reflect superior quality, exclusivity, or brand prestige.

Price Bundling: Multiple related products are sold together as a single package to provide better value to customers.

Price Ceiling: Regulatory authorities set a maximum allowable price for a product or service to protect consumers.

Price Discrimination: Different prices are charged to various customer groups for the same product, often based on factors like demographics or location.

Price Elasticity: This measures the sensitivity of demand for a product to changes in its price.

Price Fixing: An illegal practice where businesses collude to set prices at a certain level, reducing competition.

Price Floor: A government-imposed minimum price prevents goods or services from being sold below a certain value.

Price Index: A measure that tracks changes in the prices of specific goods or services over time to assess inflation or market trends.

Price Leader: A dominant company in the industry sets pricing trends that competitors often follow.

Price Level: The general range of prices for goods and services within a specific market or economy.

Price Maintenance: Manufacturers enforce specific price points that resellers must adhere to, maintaining price consistency.

Price Skimming: High prices are set initially for new products, with prices gradually lowered as market demand decreases.

Price War: Intense competition between businesses leads to repeated price reductions in an effort to gain market share.

Pricing Strategy: A deliberate plan for setting and adjusting prices to achieve business objectives, such as profitability or market growth.

Psychological Pricing: Prices are set to appeal to consumer emotions or perceptions, such as using $99 instead of $100 to suggest a bargain.

Quantity Discounts: Reduced prices are offered for customers purchasing larger volumes, encouraging bulk buying.

Reservation Price: The maximum amount a customer is willing to pay for a product or service, often reflecting their perception of value.

Revenue Management: Strategies are used to maximize revenue by adjusting prices and inventory based on customer demand.

Seasonal Pricing: Prices are adjusted based on seasonal demand fluctuations, such as discounts during off-peak times.

Sensitivity Analysis: Price changes and their impacts on business outcomes are studied to guide strategic decisions.

Skimming Pricing: Premium prices are set for products targeting customers who value exclusivity and are willing to pay more.

Standard Pricing: Fixed rates are set for standard products or services to ensure consistency across customers.

Suggested Retail Price: Manufacturers recommend prices for resellers to use as a guide in setting their own pricing.

Supply and Demand: These fundamental economic factors determine the equilibrium price for goods and services in a market.

Surcharge: An additional fee is added to the base price of a product or service, often to cover extra costs like fuel or convenience.

Time-Based Pricing: Prices vary depending on the time of day, season, or other temporal factors, such as peak or off-peak hours.

Total Cost: The sum of fixed and variable costs determines the overall expenses incurred in producing or providing a product or service.

Unbundling: Products or services that were previously bundled together are separated and sold individually at specific prices.

Uniform Pricing: All customers pay the same price for a product, regardless of location or purchase conditions.

Value-Based Pricing: Prices are set based on the perceived value of a product or service to the customer, rather than the cost of production.

Variable Costs: These expenses fluctuate depending on the volume of goods or services produced, such as raw materials and labor.

Vertical Price Fixing: Pricing decisions are coordinated between manufacturers and resellers, often leading to legal or ethical concerns.

Volume Discounts: Lower prices are offered to customers who purchase higher quantities, encouraging bulk buying.

Wholesale Price: A lower price is offered for selling large quantities of goods to retailers or distributors.

Yield Management: Revenue is maximized in service industries by dynamically adjusting prices based on customer demand and capacity constraints.

Read more on the topic: Understanding pricing terms | Academy 4 Pricing