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)
“A bargain is in its very essence a hostile transaction ... do not all men try to abate the price of all they buy? I contend that a bargain even between brethren is a declaration of war.”
—George Gordon Noel Byron (1788–1824)