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Pricing Vocabulary

The Sniffie Pricing Vocabulary is a compilation of key terms used in retail and eCommerce pricing, providing concise definitions and guidance on various pricing techniques.

Advertised price
Advertising has always been an essential part of business and commerce. The advertised price of a product or service can greatly influence...
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Brand perception
Brand perception is the way in which consumers perceive a particular brand in the marketplace. This perception can have a significant...
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Bulk pricing
Bulk pricing, also known as quantity discounts, is a pricing strategy used by ecommerce and retail businesses to incentivize customers...
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Bundle pricing
Bundle pricing or product bundling is a pricing strategy that involves offering multiple products or services as a package deal at...
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Campaign pricing
One of the many approaches to pricing is in ecommerce & retail is “Campaign Pricing,” which involves offering promotions,...
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Competitive match pricing methodology
Competitive match pricing methodology is a pricing practice that involves closely monitoring the prices of competitors in order to...
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Competitor price analysis
The competitive landscape in ecommerce and retail world is tough, to stay ahead of the competition and meet customer expectations,...
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Competitor price index
Competitor price index (CPI) refers to a metric that ecommerce and retail businesses use to monitor and compare their prices to those...
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Cost pricing or cost plus pricing
Cost-based pricing, also known as cost-plus pricing, is a pricing strategy used by businesses to determine the selling price of a product...
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Custom value in pricing
Custom value in pricing refers to the practice of tailoring prices to meet the specific needs and preferences of individual customers....
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Discount containment
Discount containment refers to the process of controlling the discounts offered to customers, so that they don’t eat into the...
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Dynamic pricing
Dynamic pricing is a strategy that involves adjusting prices in real-time based on factors such as supply and demand, competitor prices,...
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Evolving technologies
The world of ecommerce and retail is constantly changing and adapting to new technologies. From online shopping to artificial intelligence,...
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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....
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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...
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Highly competitive pricing
Highly competitive pricing is a pricing strategy used by retailers and ecommerce businesses to gain an advantage over their competitors...
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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...
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Incremental pricing revenue
Incremental pricing revenue in ecommerce and retail Incremental pricing revenue is a pricing strategy used by retailers and ecommerce...
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Initial markup
Initial markup is a term used in retail and ecommerce businesses to describe the price increase from the cost of a product to the final...
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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...
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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...
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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....
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Keystone pricing
Keystone pricing is a widely used pricing strategy in retail and ecommerce businesses. It involves setting the selling price of a product...
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Le prix Omnibus
Le prix Omnibus est le prix le plus bas auquel un consommateur a pu acheter un produit spécifique au cours des 30 derniers jours avant...
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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....
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Markdown costs
Markdown costs refer to the decrease in the original price of a product due to clearance sales, end-of-season promotions, and other...
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Markdown pricing
Markdown pricing is a common pricing strategy in the ecommerce and retail industries. It involves reducing the price of a product to...
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Market pricing
For any business it is important to understand the market(s) it operates in and the prices of similar products in the market. This...
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Markup pricing
Is a pricing strategy that involves taking the cost of a product and adding a certain percentage on top of it to set the final selling...
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Minimum advertised pricing strategy
Minimum Advertised Pricing or MAP strategy is a pricing agreement between a manufacturer and its dealers or retailers. The manufacturer...
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Nonlinear pricing
Nonlinear pricing is a strategy that takes into account a variety of factors beyond the cost of a product or service. These can include...
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Odd pricing
Odd pricing is a pricing technique that involves setting prices in odd numbers such as $0.99 or $1.97 instead of round numbers like...
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Omnibus price
An Omnibus Price is the lowest price that a consumer has been able to buy a specific product for during the past 30 days prior a campaign...
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Penetration pricing
Penetration pricing is a common pricing strategy in ecommerce and retail businesses that aims to quickly gain a large market share...
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Pocket pricing
Pocket pricing refers to the pricing strategy used in retail and ecommerce businesses that is based on the idea that consumers are...
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Predatory pricing
Predatory pricing refers to a pricing strategy where a business lowers its prices significantly below the cost of production and sells...
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Premium pricing
The concept of premium pricing refers to setting a high price for a product or service, in comparison to its competitors, to convey...
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Price anchoring
Price anchoring refers to the psychological phenomenon where consumers use an initial price as a reference point when making subsequent...
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Price band analysis
Price Band Analysis involves dividing a product’s price range into different categories, or “bands”, based on the...
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Price differentiation
Pricing is a crucial aspect of any business, particularly ecommerce and retail. Why? It affects both customer acquisition and retention....
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Price elasticity
Price elasticity measures the change in demand when you change price of a product up or down. Price elasticity is an important factor...
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Price follower
Let’s start off by classifying what a price follower is: A business or brand that closely monitors and responds to the pricing...
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Price leader
What is a Price Leader? The term refers to a company or brand that sets the benchmark or reference price for a particular product or...
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Price lining
Price lining refers to selling different products at different price points to cater to customers who are looking for different levels...
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Price matching
The basic idea behind price matching is that retailers will match the price of a competitor’s product if a customer finds it...
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Price optimization
Price optimization involves analyzing market data, consumer behavior, and sales trends to determine the ideal price for a product....
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Price point
Price point is a crucial factor in pricing within the ecommerce and retail space.  Simply put, a price point is the specific price...
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Price sensitiveness
Pricing in ecommerce and retail businesses is a complex and ever-evolving aspect of running a successful operation. One important concept...
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Price transparency
The concept of price transparency refers to the availability and accessibility of information about the prices of goods and services....
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Price war
A price war or price competition refers to a situation where businesses compete against each other by repeatedly lowering their prices...
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Pricing rules
Pricing rules in ecommerce and retail Pricing rules refer to a set of guidelines or parameters that ecommerce and retail businesses...
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Pricing safeguards
Pricing safeguards refer to the measures that ecommerce and retail businesses take to prevent and detect illegal or harmful pricing...
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Product life cycle
In today’s fast-paced business world, companies must be able to quickly respond to market changes and adjust their strategies...
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Product volumes
The role of product volumes in ecommerce and retail When it comes to pricing in the ecommerce and retail sectors, product volumes is...
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Profit optimization
One of the key concepts to grasp when it comes to pricing within the ecommerce and retail space is profit optimization. It refers to...
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Promotional pricing
In the world of ecommerce and retail, the way a product is priced can make all the difference. One of the most common pricing strategies...
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Psychological pricing
In the world of ecommerce and retail businesses one of the most intriguing aspects of pricing is the concept of “psychological...
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Real time monitoring
In the fast-paced world of ecommerce and retail businesses, it’s essential to have a comprehensive understanding of the market...
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Retro payments
Retro payments are a pricing concept that refers to payments made after a product or service has been sold and delivered. This concept...
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Sales volume
In general sales volume refers to the total amount of goods or services sold over a certain period of time. It is a key metric in determining...
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Stock level
In general stock level, also known as inventory level, refers to the amount of a specific product or products that a business has on...
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The perceived value of products
Perceived value of products refers to the value that consumers place on a product, which may not always be aligned with the actual...
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Value based pricing
Value based pricing is a pricing strategy that focuses on the value that a product or service provides to the customer. It’s...
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Wholesale price
The wholesale price refers to the cost of a product from the manufacturer or distributor to the retailer. It plays a vital role in...
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