Meaning & use

net pricing

noun·Advancedbusinesstechnical

Last updated

UK/ˌnet ˈpraɪ.sɪŋ/
US/ˌnet ˈpraɪ.sɪŋ/

Meanings

  1. noununcountablebusiness

    A way of selling in which the seller sets one final price, with any discounts or commission already included, rather than a list price that is later reduced.

    Grammar: Uncountable: we use net pricing, not 'a net pricing' in most contexts.

    Patterns

    • net pricing for something
    • move to net pricing

    The supplier switched to net pricing, so buyers no longer negotiate discounts.

    Under net pricing, the quote already includes the dealer's margin.

    Net pricing keeps the invoice simple because there are no hidden extras.

  2. noununcountablebusiness

    In travel and hotels, quoting a wholesale rate that agents add their own markup to before selling to customers.

    Grammar: Uncountable and used in trade contexts, often with 'rates'.

    Patterns

    • net pricing for agents

    The hotel offers net pricing to tour operators, who add a margin.

    With net pricing, the agent decides the final retail price.

    Net pricing lets travel agents compete on their own markup.

Common combinations

net pricing model
The firm uses a net pricing model for its resellers.
adopt net pricing
Several airlines adopted net pricing for corporate customers.
net pricing agreement
A net pricing agreement was signed with the distributor.
transparent net pricing
Buyers like the transparent net pricing.
net pricing structure
The net pricing structure removes the need for rebates.

Synonyms and how they differ

fixed pricing
Fixed pricing means the price does not change, but it does not say whether discounts are already included the way net pricing does.
all-in pricing
All-in pricing stresses that taxes and fees are included, while net pricing is about discounts and margins.
wholesale pricing
Wholesale pricing describes the lower rate for resellers, which is what net pricing often is in travel.

Opposites

list pricing

Word family

net adjective
remaining after deductions
price verb
to set the cost of something
pricing noun
the process or system of setting prices
net price noun
the final price after all reductions

Commonly confused: net pricing or gross pricing?

net pricing vs gross pricing

Gross pricing is the figure before deductions; net pricing is after them.

Practice

Under net pricing, the quoted price is ___.

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