Price point?

vortex

vortex

"A billion Eddie Barzoons jogging into the future
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This one's not tongue in cheek, which would be a great emoticon, BTW.

I keep hearing this and it sounds like an extra word added on for no apparent reason.

Since I'm kind of a stickler for preciseness in language please enlighten me.

Does "This cigar is a bargain at the current price point"

And "This cigar is a bargain at the current price" differ in meaning in some way?

I searched but only found people using it with no explanation.
 
"" -> dictionary.com

"price point
–noun
the price for which something is sold on the retail market, esp. in relation to a range of competitive prices: We can't go below the $100 price point for this printer."

"price point
n. The retail price of a product, usually when viewed as one of a series of possible competitive prices: expected to release the software below the $50 price point. "

To my knowledge, there are usually 2-3 prices for a given product depending on how many hands it goes through. With a supplier in hand, there are usually 3.

Manufacturer --> Supplier, Supplier --> Vendor, Vendor --> Consumer

It seems to just be an "inside the business" term for price. Also note in the definition the reference to competitive pricing.
 
TheVitaleMob said:
"" -> dictionary.com

"price point
–noun
the price for which something is sold on the retail market, esp. in relation to a range of competitive prices: We can't go below the $100 price point for this printer."
Click to expand...


I look at it in an ignorant fashion. To me it means the price I am willing to pay..Or that I got a great deal on something.
As in, "you cant beat this price point."
 
As far as I know, the phraseology means a variable price of a unit in relation to the whole of the product. If you think of a box of cigars with a floating price because of sale prices vs. MSRP it should equal out to X amount of dollars at the end of the run. If you need to end up with an average price point of $100 per unit, then you set the price at $110 retail to offset the cost basis of having the same box at a sale price of $90 for Y amount of time. It gives you room to have sales without losing your shirt at the end of the day.

Then again, I am tired and might rethink my entire post after I wake up and have some coffee.
 
My layman's interpretation is this.

Price point pertains more to the supply side intent as far as retail pricing, especially with regard to the establishment of a particular product class expectation. For example, $2 per stick and $15 per stick are two different price points with the lower one positioning that product as a "value" cigar. The higher price point positions that product as a "super premium." So, price point really entails more than the dollars. It also serves to differentiate product into classes or categories that may have nothing to do with its usefulness or performance.

Price pertains to the price paid by the consumer and speaks to the consumer's perception of value.

Examples:
Davidoff Millennium Series cigars occupy a rarefied price point, the $20+ category. Also in this category are Perdomo Edicion de Silvio, Zino Platinum Crown, and Greycliff Espresso.

Padron 1000's Series, Don Pepin Garcia Black Label, and Joya de Nicaragua Antaño are roughly $5 cigars.

The $20+ price point implies certain things about the product, especially in terms of nonfunctional utility. Nonfunctional utility is a marketing term that essentially translates into "those things that are not inherent in the product itself." In other words, the quality of the tobacco, the quality of construction, the flavor, the burn properties, etc. are examples of functional utility or those things that the product itself provides and is related to the performance of the product. Nonfunctional utility are such things as price, marketing ploys, naked chicks, snob appeal, vanity appeal, etc. They don't make the cigar smoke any better, especially if the band is removed and the cigar is smoked blind.

The Davidoff Millennium might be a bargain at that price point (I get lots of great looks when I'm smoking one, and I feel special with one in hand because the name is more recognizable than Perdomo or Graycliff) but it might only be a bargain at a price of $5 because it might not smoke that great.

The Padron 2K maddie is not only a bargain at the price point (considered as one of the best, inexpensive cigars in the range) but at the price, which is very reasonable.

Does that help?

Wilkey
 
I don't know what all the technical definitions are, but I always look at it as a comparative value.

For example: How does this cigar compare to the others at the same price point? When I say something is a good value at that price point, I'm saying it's a good value compared to other sticks that are similarly priced in a range of $1-$3 of that particular cigar's price.

To me, price point is a more general term than price. That may not be the real definition, but that's how I interpret it.
 
I always considered price exclusive to a particular product. I always felt price point indicated almost a comparison to other similar external variables which in this case may include other cigars.
 
Lots of good replies here. My take is that price point refers to a general range of competitive products (i.e. cheap, average, premium, super-premium), and is used to compare different cigars. An example: VSGs and Tatuajes seem to occupy the same price point. Price, to me, is more of an exact reference and is used in comparing the same cigar. E.g. I got these Padron 3ks at a great price: $3.30 (as opposed to their MSRP). The Padron 3ks are still at the $4.00 price point, but the actual price was $3.30.

Maybe this only makes sense in my head, but that's how I always took it.

Edit: After taking another look at the thread, it seems I pretty much see it the same as LilB and Marcos.
 
Some excellent and well thought out replies! Thank you.

It would seem that there is an occasional misuse of the term which is probably what got me confused. I thought there might be a special use of the term as it refers to cigars. It has been rather suddenly plopped into cigar forum lexicon.

So price point refers to a class or range of price for a product. I will keep this in mind the next time I hear it referenced and see if it is being used correctly or not. Of course, I won't attempt to criticize or correct many people. ;)

There exists a tendency to put extra words and syllables in a word or phrase in an attempt to sound or be more precise. It's ironic that this tendency often has the opposite effect! :D

Thank again one and all,

Steve
 
Linky

For me 'price point' is the number at which - 'at' or 'lower' - is a good buy.

Current price is simply referring to a number.

The price of Item A is $20....Item A's value to me is worth only $18(my price point)
Above $18.00, I have no interest.

Say Item A is currently $30....my price point hasn't change(unless the value has risen).


Ahhhh...Wilkey explains these things much better! :)


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I found this interesting:
<linky>
Demand-based pricing is any pricing method that uses consumer demand - based on perceived value - as the central element. These include : price skimming, price discrimination and yield management, price points, psychological pricing, bundle pricing, penetration pricing, price lining, value-based pricing, geo and premium pricing.


...and WHY are you asking this at 4:45 AM????
 
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