Paul’s Pricing Dictionary: Panic

P 75x75Panic, n. If your Pricing Team isn’t panicking, don’t panic. If the Pricing Team is panicking, then you should really feel free to panic.

Paul’s Pricing Dictionary: Re-present

P 75x75Re-present, vb. To re-present a deal by re-ordering and re-formatting discounts in order to give the impression of an improved deal. Not the same as re-structure in that the discounts quoted are exactly the same as before.

 

Paul’s Pricing Dictionary: Currency

P 75x75Currency n. The first refuge of the scoundrel. 1) The first excuse used as soon as there is an adverse movement in exchange rates to explain business under-performance. This is a phenomenon which miraculously disappears as soon as there is a beneficial shift in exchange rates. 2) The perfect excuse for a list price increase. 3) One of the many reasons why list prices matter.

Paul’s Pricing Dictionary: Commodity

P 75x75Commodity, n. An undifferentiated product or service which enhances neither customer choice nor business nor investor returns. Often used in the context of an excuse “it’s only a commodity” by those who have either not tried, given up or are lacking in  imagination.

Paul’s Pricing Dictionary: Haste

P 75x75Haste, n. Hurry, rush. Price in haste, re-price at leisure.

Paul’s Pricing Dictionary: Re-structure

P 150x150Re-structure, n. & vb. The Bid Desk’s rejigging of a deal to maintain margins and lower risk while giving the illusion of lower prices.

Paul’s Pricing Dictionary: Transfer Price

P 150x150Transfer Price, n. A cost accounting construct conceived by Tax Accountants to minimize corporate tax bills and unintentionally expose those who think that this somehow the responsibility of the Pricing Team – presumably because it has the word “price” in it – thus exposing their ignorance of both Pricing and Accounting in one fail safe swoop.

Paul’s Pricing Dictionary: Margin Recovery Plan

P 150x150Margin Recovery Plan, n. A work of complete fiction written by Sales in the hope that it will neither be read nor the author held to account by anyone in Finance.

Paul’s Pricing Dictionary: Scholarship

P 150x150Scholarship, n. A fancy term used by academics for a discount.

Paul’s Pricing Dictionary: Strategic Deal

P 150x150Strategic Deal, n. deal struck at a massively negative gross margin struck by CEO or Executive Sponsor usually without hope of margin recovery.

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