Understanding Basic Pricing Terminology in DigitBridge

Here are some key terms to help you navigate pricing tools with confidence.

Base Cost
This is the foundational cost value for a product. It's typically the direct cost of acquiring or producing an item, not including overhead, shipping, or additional handling fees.

Unit Cost
Refers to the cost per individual item, often factoring in overhead, duties, or shipping. Unit Cost is commonly used in cost-based pricing strategies.

Average Cost
The average value of an item over time, accounting for all past purchases and adjustments. This can fluctuate depending on how you receive and update inventory.

WSP (Wholesale Selling Price)
The price at which you sell a product to wholesale customers. Often calculated using a multiplier on cost (e.g., Base Cost x 2).

MSRP (Manufacturer's Suggested Retail Price)
The full retail price of the product. Used as a baseline for custom business types or discount strategies.

Dropship Price
A price tier specific to dropship accounts. This can differ from wholesale or retail depending on your channel strategy.

Business Type Pricing
DigitBridge supports custom price tiers by business type (e.g., Distributor, Preferred, Retail). These tiers are often calculated as a percentage of MSRP (e.g., Distributor = MSRP x 0.90).

Multiplier
Used to calculate new prices from a base value. For example, a multiplier of 1.5 on a $10 cost = $15 price.

Addition
Used to increase price by a fixed amount rather than a percentage. For example, Cost + $2.

Material Value
Represents the cost of raw materials like gold or silver that fluctuate in price. Used for calculating product value based on the material's current market rate.