Depending on whether they are describing a good or a service and the
product's industry, people may use terms other than the word price.
LEARNING OBJECTIVE [ edit ]
Name the different terms used to reference pricing
KEY POINTS [ edit ]
From a customer's point of view, value is the sole justification for price.
The price of an item is also called the price point, especially when it refers to stores that set a
limited number of price points. The words charge and fee are often used to refer to the price of
services.
The transportation industry charges a fare for its services.
TERMS [ edit ]
price point
The price of an item, especially seen as one of a number of pricing options.
price
The cost required to gain possession of something.
EXAMPLE [ edit ]
Dollar General is a general store or "five and dime" store that sets price points only at even
amounts, such as exactly one, two, three, five, or ten dollars (among others).
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Introduction
We've been using the word "price" a lot.
There are, however, other terms you may
come across in your studies and daily life
that serve as synonyms.
Price Point
The price of an item is also called the price
point, especially where it refers to stores
that set a limited number of price points.
For example, Dollar General is a general
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store or "five and dime" store that sets
price points only at even amounts, such as exactly one, two, three, five, or ten dollars (among
others). Other stores will have a policy of setting most of their prices ending in 99 cents or
pence. Other stores (such as dollar stores, pound stores, euro stores, 100-yen stores, and so
forth) only have a single price point ($1, £1, 1€, ¥100), though in some cases this price may
purchase more than one of some very small items. Price is relatively less than the cost price.
Charge
When someone wants to know the price of a service, they may ask, "How much do you
charge? " In this context, the word "charge" is a synonym for price.
Value
From a customer's point of view, value is the sole justification for price. Many times
customers lack an understanding of the cost of materials and other costs that go into the
making of aproduct. But those customers can understand what that product does for them in
the way of providing value. It is on this basis that customers make decisions about the
purchase of a product.
Fee
Service providers may present you with a fee list as opposed to a price tag if you ask for the
price of their services.
Fare
You pay a price to fly, ride the bus and take the train. The price in these industries is
expressed as a fare .
A London Bus
The price to ride a bus is expressed by the term "fare. "