Why use the term &#...
 

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[Closed] Why use the term 'Price Point' instead of just 'Price'?

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


 
Posted : 09/10/2012 3:03 am
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[url= http://en.wikipedia.org/wiki/Price_point ]Wiki Says.....[/url]


 
Posted : 09/10/2012 3:32 am
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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.


 
Posted : 09/10/2012 3:57 am
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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


 
Posted : 09/10/2012 4:31 am
 Pook
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nearly as irritating as 'APR typical' rather than 'typical APR'

and when did uPVC become PVCu?


 
Posted : 09/10/2012 5:01 am
 bol
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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.


 
Posted : 09/10/2012 6:13 am
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But bol, what purpose does it serve?

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


 
Posted : 09/10/2012 7:28 am
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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 : 09/10/2012 7:47 am
 igrf
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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 : 09/10/2012 7:49 am
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Fair enough, makes sense.

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


 
Posted : 09/10/2012 7:56 am
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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?


 
Posted : 09/10/2012 8:29 am
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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


 
Posted : 09/10/2012 8:32 am
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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 : 09/10/2012 8:38 am

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