- Why use the term 'Price Point' instead of just 'Price'?
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.Posted 5 years agoigrfMember
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?Posted 5 years agooldblokeMember
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.Posted 5 years ago
The topic ‘Why use the term 'Price Point' instead of just 'Price'?’ is closed to new replies.