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definitiondifference between theselling price and the "cost"of a product/service;expressed on a totalvolume or individual basis,dollar terms, orpercentages
3 types of"margin"gross margin,trade margin,profit margingrossmargin/grossprofit:total sales rev -total cogs OR perunit basis = unitselling price-unitcogstrademargin:unit sales price-unitcost at each level of amarketing channel(manufacturer towholesaler to retailer)other namesfor trademarginmarkup,mark-on;expressed as apercentage
target profitpricinginvolves setting anannual target of aspecific dollarvolume of printtarget returnon salespricinginvolves setting aprice to achieve aprofit that is aspecified percentageof the sales volumecustomarypricinginvolves pricing setting aprice that is dictated bytradition, a standardizedchannel of distribution,or other competitivefactorsabove-, at-, orbelow-marketpricinginvolves setting a marketprice for a product orproduct class based on asubjective feel for thecompetitors' price ormarket price as thebenchmark; ex: nordstrom
loss-leaderpricinginvolves deliberately selling aproduct below its customary