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Marketing Vocab

VB Pricing Vocab

WordDefinition
Cost What it costs your store to purchase a product form a supplier.
Margin The difference between your price and the cost for a particular product.
Revenue The total sales (in dollars) of your store over a period of time.
Profit The revenue of your store mubys all expenses over some period of time.
Cost-Oriented Pricing Setting prices based on cost. Usually price are set as a multiple of cost, such as 1.2 times the cost.
Demand-Oriented Pricing Setting prices based on what the customer is willing to pay.
Competition-Oriented Pricing Setting prices based om competitor's prices. Setting Prices lower than a competitor will generally draw more customers to your store.
Created by: FredYugi
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