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VB Pricing Vocab

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