pricing

  

Definition

Method adopted by a firm to set its selling price. It usually depends on the firm's average costs, and on the customer's perceived value of the product in comparison to his or her perceived value of the competing products. Different pricing methods place varying degree of emphasis on selection, estimation, and evaluation of costs, comparative analysis, and market situation. See also pricing strategy.

Use pricing in a sentence

  • The pricing strategy was paying off great and our items were flying off the shelves at a really quick pace.

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  • Our jewelry store carefully researches our competitors' products, service, and pricing on an ongoing basis; and we adopted single-point pricing in our sales model.

    7 people found this helpful
  • One of the most important things you can figure out when coming out with a new product is what the pricing should be.

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Notable Quotes

  • What price will consumers pay?
    "Get this answer wrong and you could leave bags of money on the table--or worse, send customers running into the arms of the competition. When Apple sliced the price of its iPhone by a third after only two months on the market, even loyal customers screamed, forcing chief Steve Jobs to apologize and offer a partial rebate. Consultants get paid handsomely to help companies arrive at the right price."
    - Brett Nelson

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