Target Price (B2B Pricing)
is the price at which a business positions its product or services for its sellers to achieve. A target price is commonly a 'stretch' goal, representing the upper percentile of prices realized for a given product in a particular customer segment. Target prices may be derived with a variety of quantitative means and may incorporate qualitative information, such as managerial judgment, in the calculation. Target prices are commonly used in conjunction with lower price levels, requiring managerial approval, and price floors to establish a range of acceptable pricing as a guide for price negotiation with customers.
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Famous quotes containing the words target and/or price:
“But this we know, the obstacle that checked
And tripped the body, shot the spirit on
Further than target ever showed or shone.”
—Robert Frost (1874–1963)
“Thou blind man’s mark, thou fool’s self-chosen snare,
Fond Fancy’s scum and dregs of scattered thought,
Band of all evils, cradle of causeless care,
Thou web of will whose end is never wrought;
Desire! desire, I have too dearly bought
With price of mangled mind thy worthless ware;”
—Sir Philip Sidney (1554–1586)