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.

Paul’s Pricing Dictionary: Price

P 150x150Price, n. Value, plus a reasonable sum for wear and tear of conscience in demanding it. (qv, Ambrose Bierce, The Enlarged Devil’s Dictionary)

Paul’s Pricing Dictionary: Happiness

P 150x150Happiness, n. A feeling of well-being which is directly proportional to your gross margin %.

 

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