<Li> Pricing at the transaction level focuses on managing the implementation of discounts away from the reference, or list price, which occur both on and off the invoice or receipt . </Li> <P> A "price waterfall" analysis helps businesses and sales personnel to understand the differences which arise between the reference or list price, the invoiced sale price and the actual price paid by a customer taking account of contract, sales and payment discounts . </P> <P> Many companies make common pricing mistakes . Jerry Bernstein's article Use Suppliers' Pricing Mistakes outlines several sales errors, which include: </P> <Ul> <Li> Weak controls on discounting (price override) </Li> <Li> Inadequate systems for tracking competitors' selling prices and market share (Competitive intelligence) </Li> <Li> Cost - plus pricing </Li> <Li> Price increases poorly executed </Li> <Li> Worldwide price inconsistencies </Li> <Li> Paying sales representatives on sales volume vs. addition of revenue measures </Li> </Ul>

Prestige pricing involves pricing a group of similar products at a few different price levels