Manufacturer’s suggested retail price (MSRP)
Manufacturer’s Suggested Retail Price, commonly known as MSRP, is a recommended selling price for a product set by the manufacturer. This price is intended to serve as a guide for retailers and is used as the starting point for determining the final sale price of a product in the market. MSRP plays an important role […]
Keystone pricing
Keystone pricing is a widely used pricing strategy in retail and ecommerce businesses. It involves setting the selling price of a product at twice the cost of the product. This strategy is popular because it provides a healthy profit margin for the seller, while still being perceived as reasonably priced by the consumer. Benefits of […]
Key value items (KVI)
Key value items or KVIs, are products that play a critical role in the sales and profitability of a retail or e-commerce business. These items are often heavily promoted, and prices for KVIs are carefully monitored by both the retailer and the manufacturer to ensure that they remain competitive and attractive to consumers. In the […]
Key basket
The concept of a Key Basket refers to a group of products or items that are deemed to be particularly important for a business, as they drive the majority of its sales and profits. This group of products is typically used as a reference point to help businesses set prices for other items in their […]
Initial markup or IMU
Initial markup or IMU is a pricing strategy used by retailers and ecommerce businesses to determine the initial price of a product based on the cost of goods sold (COGS) and desired profit margin. It is calculated by adding a percentage (the markup) to the cost of the product. For example, if a product costs […]
Incremental pricing revenue
Incremental pricing revenue in ecommerce and retail Incremental pricing revenue is a pricing strategy used by retailers and ecommerce businesses to increase revenue by offering customers additional products or services at an additional cost. This strategy is often used in the form of upselling or cross-selling, where a customer is offered an upgrade or add-on […]
Incremental customer value
Pricing is one of the most crucial aspects of running a successful ecommerce or retail business. One concept that is becoming increasingly important for companies to understand is the idea of incremental customer value. This idea focuses on the additional value that a customer brings to a business over and above the initial transaction. By […]
Highly competitive pricing
Highly competitive pricing is a pricing strategy used by retailers and ecommerce businesses to gain an advantage over their competitors by offering products and services at lower prices. This strategy is often used in highly competitive markets where there are many similar products or services being offered by multiple businesses. Pros and cons of highly […]
Fixed profit margins
In the retail and ecommerce industry, it’s important to set a pricing strategy that ensures a steady stream of profits. One common approach is to establish fixed profit margins for each product or service being sold. This means that a set amount of profit will be added to the cost price of each item, resulting […]
Ex-works pricing (EXW)
Ex-works pricing (EXW), is a pricing method that is based on the cost of the goods or products at the factory or manufacturing site. In this model, the seller is responsible for making the goods available at the factory, while the buyer is responsible for all other costs, including transportation, insurance, and customs fees. Pros […]