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Supply Chain Glossary - P

Supply Chain Glossary - P

price point

The relative price position at which the product will enter the market compared to direct and indirect competitors' prices. It is considered within the context of the price-range options available: high, medium, or low.

An agreement between a purchaser and a supplier that the price of the goods ordered is subject to change at the supplier's discretion between the date the order is placed and the date the supplier makes shipment and that the then-established price is the contract price.

An agreement by a supplier with a purchaser to grant the purchaser any reduction in price that the supplier may establish on its goods before shipment of the purchaser's order or to grant the purchaser the lower price should the price increase before shipment. Price protection is sometimes extended for an additional period beyond the date of shipment.


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