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Advance pricing

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Definition Edit

Advance pricing (also called forward pricing) is

[s]etting prices for manufactured goods below current costs in the expectation that these costs will fall as production experience accumulates and scale increases. A common pricing strategy for integrated circuits, where advance pricing has been used to gain early market share, sacrificing immediate profits for those in the somewhat longer term.[1]

References Edit

  1. International Competitiveness in Electronics, Glossary, at 505.

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