A company that adds a
feature or service to an existing good or
service bought from another source and
resells it as an integrated good or improved
Value-Added Tax (VAT)
A tax based on the value
added during each stage of a product’s
production or distribution. Common
throughout the European Union.
A business strategy that
sets a product or service price based on the
benefit it provides the customer, rather than
on the cost of the product, market price,
competitor, or historical price. Value-based
pricing includes advertising or surveying to
determine or measure the anticipated benefit
the customer will receive and align the value
delivered. Pricing is based on the perceived or
actual value that the end user will receive.
An insurance policy in which the
sum to be paid in case of loss is fixed by the
terms of the policy; especially relating to fire
A business expense such as raw
materials, utilities, or payment to hourly
employees that changes in proportion to the
level of output.
A pricing strategy in
which a supplier is willing to sell a good or
service to a buyer at a lower profit margin or
even at a loss in the hope that the buyer will
purchase other goods or services at a higher
profit margin for the seller.
The minimization and control
of new materials, parts, equipment,
procedures, and methods used to produce a
good or service through standardization,
simplification, and specialization.
A seller of goods or services whereby the
exchange is solely transactional. “Supplier” is
the preferred term when a longer-term or
strategic relationship is involved. See also: