Pricing Glossary

At PricingHUB , we think that understanding the terminology used in pricing strategies is crucial for the pricing professionals working in the field of retail and e-commerce. That’s why we think this glossary serves as an essential tool for grasping basic and complex concepts alike.

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Price
Distribution channels
Cross selling
Customer centric
Price elasticity
Sales index
Pricing AI

Calculating a margin
Back margin
Front margin
Gross margin
Sales margin
Pricing sensitivity
Net margin

Omnichannel
MSRP
Price bundling
Selling price
Psychological price
Price image

Relative price
Safety stock
Brand rate
Up selling
Yield management
Dynamic pricing

Definitions

In the context of commerce, a pricing definition specifies the method used to set the selling price of a product or service. This foundation is vital for any pricing manager or category manager aiming to optimize profit margins and market share.

Why is it important to know pricing definitions?

Grasping various pricing definitions enables businesses to effectively strategize and communicate their pricing models internally and with customers. Knowledge of these terms is key to navigating the competitive market landscape. Understanding these definitions becomes even more critical when applying specific strategies such as a consumer centric price optimization or a competitive alignment strategy.

Both approaches are essential when it comes to price optimization. If you want to leverage your pricing and implement effective pricing strategies that will help you optimize your pricing performance, you need to understand the key concepts surrounding pricing strategy. Price bundling, cross-selling and up-selling to customers are just some of the fundamental concepts that every category or pricing manager needs to understand. In this section, you’ll find an overview of each of these concepts in a dedicated article.

Once you’ve familiarized yourself with the key concepts of pricing, it will be much easier for you to optimize your prices and get the most out of price optimization. If you want to increase your sales performance or improve your productivity, optimizing the pricing of all your products is a must. That’s why we’ve developed a tool that meets all your needs and helps you build an ambitious pricing strategy to achieve your business objectives. Book a demo to learn more about it.