← DictionaryPricing Model
also called pricing structure
The logic used to set price: hourly, fixed, value-based, tiered, usage or subscription.
How you decide what to charge.
What It Is
Pricing Model belongs to Business, specifically the Pricing part of it. Stated plainly: the logic used to set price: hourly, fixed, value-based, tiered, usage or subscription.
It is a repeatable structure, which means it only pays off when it is actually followed through instead of quoted. Used with that meaning, it stays a working tool rather than a talking point.
How It's Used
In practice, Pricing Model shows up in commercial decisions, pricing conversations and how the business runs. It rarely travels alone — expect it next to Value-Based Pricing, Tiered Pricing and Margin. The practical test is whether anyone can follow it without the person who wrote it in the room.
Why It Matters
Pricing Model is one of those items that only becomes visible when it is missing. When it is unclear, margin leaks in places nobody is looking. The businesses that treat it seriously spend less time redoing work.
It is a set of steps someone worked out so you do not have to guess the order. How you decide what to charge.
Termshift™
How the meaning shifts depending on who is using it, and where.
In agency and in-house rooms, Pricing Model means exactly the logic used to set price: hourly, fixed, value-based, tiered, usage or subscription.
In plain conversation it comes out as how you decide what to charge.
The Bottom Line
The practical takeaway on Pricing Model: how you decide what to charge. Judge it by that, not by how it sounds.