Dictionary of Procurement Terms

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 insurance.