What is purchase price?

Purchase Price. Reviewed by James Chen. Updated Jun 7, 2019. The purchase price is the price an investor pays for an investment, and the price becomes the investor’s cost basis for calculating gain or loss when selling the investment.

What is the price of an item called?

The price of an item is also referred to as the price point, particularly when referring to businesses that have a restricted number of pricing points. For example, a general shop that only charges even sums, such as one, two, or ten dollars. Other stores have a policy of finishing the majority of their pricing with 99 cents or pence.

What is premium pricing?

Premium Pricing: High price is used as a defining characteristic in premium pricing. Such pricing tactics are effective in segments and industries where the business has a significant competitive advantage. For example, Porsche in automobiles and Gillette in razor blades.

What is the price of a product or service?

The price of a product or service is the outcome of a sophisticated series of computations, study and research, and risk-taking skills. A pricing strategy considers, among other things, segmentation, ability to pay, market conditions, competitor activities, trade margins, and input costs.