Glossary.
The vocabulary of economic intelligence in manufacturing. Definitions, context, and how each concept connects.
Configurable Product Pricing
Configurable product pricing is the practice of computing the price of a product based on the attributes selected at the time of order — size, material, finish, color, print method, quantity — rather than looking it up in a static table. It's the only pricing model that scales when the number of possible product combinations exceeds what any table can reasonably store or maintain.
Cost-to-Price Calculation
Cost-to-price calculation is the process of deriving a selling price directly from the real production cost of an item — including materials, labor, and overhead — rather than from a static price table or a standard cost estimate.
Dynamic Pricing
Dynamic pricing in manufacturing is the practice of automatically adjusting prices as the underlying cost inputs change — materials, energy, labor rates, overhead — so that every quote reflects the current cost of production, not a fixed value set in the past.
Financial Result per Item
Financial result per item is the complete picture of a single order line's economics — revenue, production cost, and resulting margin — calculated at the moment of quotation. It answers the question every salesperson should be able to answer before confirming a deal: does this specific item, at this specific price, make financial sense?
Item-Level Pricing
Item-level pricing is the practice of calculating the price of each individual item in an order from its own specific production cost — rather than applying a single rule, markup, or average across the entire order. In make-to-order manufacturing, where each item can carry a different cost even within the same order, this distinction determines whether pricing is accurate or approximate.
Margin Protection
Margin protection is a pricing mechanism that enforces a minimum acceptable margin on every order — automatically, at the moment of quotation — so that no deal can be accepted below the financial threshold that makes it worth producing.
Price Optimization
Price optimization is the process of adjusting prices to maximize a desired outcome — margin, conversion, revenue, or competitive position — using data about costs, demand, and market conditions. In B2B manufacturing, the outcome that matters most is not revenue, but financial result per order.
Price Tables vs. Calculation
Price tables are static lists that assign a fixed price to a product or product variant. Calculated pricing derives the price at the moment of quotation from the actual production cost of that specific configuration. The difference is not just technical — it determines whether your prices are accurate, maintainable, and connected to reality.
Production Cost Visibility
Production cost visibility is the ability to see the real, current cost of producing a specific item — including materials, labor, overhead, and setup — at the moment a pricing or production decision is being made. It is the difference between knowing what something costs and estimating what something costs.
Real-Time Pricing
Real-time pricing is the practice of calculating a product's price at the exact moment of quotation, using current cost data — materials, labor, overhead — rather than values stored in a static table or updated on a fixed schedule.