Why use the term 'Price Point' instead of just 'Price'?

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  • Why use the term 'Price Point' instead of just 'Price'?
  • stevious
    Member

    Still none the wiser. That wiki page might as well be written in Japanese.

    Doesn’t explain why people on internet forums use it, for example.

    stevious
    Member

    Genuine question, just wondering what the point of the point is.

    jota180
    Member

    It’s a general price with a limit

    Something – say – at the £1000 price point could be £990 or £999 or even £950 but not usually £1050 or £1025

    So it’s a point at which it’ll be close but under

    Premier Icon Pook
    Subscriber

    nearly as irritating as ‘APR typical’ rather than ‘typical APR’

    and when did uPVC become PVCu?

    bol
    Member

    It’s just sales and marketing speak. Every profession has short-hand phrases that suit a particular need. I don’t see the problem myself as it serves a purpose.

    stevious
    Member

    But bol, what purpose does it serve?

    Doesn’t Jota’s description doesn’t really explain why people need to use it.

    what purpose does it serve?

    The term ‘price point’ refers to the price that describes a range of prices. It’s a more scientific-sounding way of saying ’round about 400 quid’, which could mean anything from £390—£550, depending on your point of view, product under discussion, etc.

    It’s better than giving a range, because it is open-ended.

    igrf
    Member

    Price point is generally a term indicating product pricing parameters for marketing reasons, in bikes £799 say might be a price point you try and hit. Some might try with a cheap frame and better components, others might try with a better quality frame and cheap components, but the key is the target price point of £799 that the market demands as the point at which it will purchase a Mountain bike with the assumption it will perform to a given standard.

    Right now there is a battle to bring a well specc’d road bike in at £999 and if it could have a carbon frame at the £999 price point with a dealer margin…

    Price point is also used in setting £99 rather than £100 to seem psychologically less than a three figure price point

    £76.27 would not be regarded as a suitable price point.

    Does that explain for you ok?

    stevious
    Member

    Fair enough, makes sense.

    Still sounds like management speak when used in normal discourse though.

    Premier Icon BadlyWiredDog
    Subscriber

    Still sounds like management speak when used in normal discourse though.

    Why use ‘discourse’ instead of ‘conversation’? Why use ‘conversation’ instead of ‘talk’? It’s mostly semantics. Sorry, I meant ‘words’. Except it’s not quite the same there is it?

    clubber
    Member

    Price point makes sense to me. People talk about a 500 or 1000 pound bike as a price point – they don’t really mean exactly 500 or 1000 but there or thereabouts because people understand what type/quality/spec of bike that means

    oldbloke
    Member

    Back in the day when I used to price retail sales, “price” was what you got when you took a product / service / package you’d already defined and worked out what to charge for it.

    “Price point” was when you took a fixed price which was perceived to be a customer’s limit and worked back from that to see what you could provide for that sum.

Viewing 13 posts - 1 through 13 (of 13 total)

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