Threshold Price

Threshold Price

The price that psychologically encourages a potential buyer to purchase a product. For example, a company may price a product at $19.99 because it finds that it begins to lose buyers at $20. This maximizes the company's revenue because it makes slightly less money from significantly more buyers.
References in periodicals archive ?
Also, the company said that the threshold price of the notes will be set at a 30% premium to the initial price of the same, which will equal the arithmetic average of the volume-weighted average prices of one share of Voya common stock over the five consecutive trading days starting on and including 9 March 2018.
In its Meeting held on 18th January, 2018, the GST Council has recommended that for the purpose of GST exemption, the threshold price limit of Admission Ticket for circus, dance,theatrical performances including drama or dance, award functions, pageants, concerts, musical performances, and recognized sporting events may be increased from Rs.
During the House committee on good government and public accountability hearing on the botched immunization program on Wednesday, found that the government bought the vaccine for $21 'societal price' instead of its $13 threshold price.
With demand actually increasing, and without a threshold price to encourage breeding, supply-side interventions are unlikely to be effective in protecting wild rhinos.
That means, if an application is submitted to the scheme in November 2016 with a proposed settlement date of May 2017, the maximum threshold price of PS200,000 will apply.
In theory, it should be possible to identify a threshold price level at which there is not enough new drilling to continue growing shale output.
If bidding reaches a to-be-determined threshold price, the agency would set aside up to 30 percent of the licenses for companies that don't currently hold a lot of nearby airwaves.
Oil prices remained above the threshold price of production for most projects, keeping increasing demand for oilfield goods and services steady.
In bankruptcy cases, a stalking horse bid sets a threshold price so that other potential bidders can't low-ball the purchase price.
Rite Aid was notified by the exchange on October 16 that the average closing share price of its common stock had fallen below that threshold price for 30 consecutive trading days.
Such thresholds establish a maximum price per barrel of oil or million Btu of natural gas where producers may receive royalty relief; above the threshold price, royalties must be paid.
To investigate how the total cost would behave if this threshold price value is changed, a simulation was run on Microsoft Excel with various values for this threshold price, and the results are shown in Table 3 and Figure 2.