Production costs are all expenses directly associated with the production of a product - these include material costs, production wages and overheads for machinery, energy and administration. They form the basis for the calculation of sales prices and the valuation of inventories in the balance sheet.
A Veblen good is a product whose demand increases as the price rises - contrary to classic market theory. The high price signals exclusivity, prestige and social status, which makes the good particularly attractive to certain buyers. Typical examples are luxury brands, designer fashion or high-priced watches. The name goes back to the economist Thorstein Veblen, who coined the concept of demonstrative consumption.
Anchor pricing describes a psychological principle in which the first number mentioned - the "anchor" - influences the perception of subsequent prices. A high starting price is often deliberately set so that a subsequent offer appears particularly favourable in comparison. Consumers unconsciously orientate themselves towards this reference value, which can strongly influence their price perception and purchasing decisions. This effect is used specifically in marketing and e-commerce, for example by crossing out original prices or comparative offers.
A letter of intent is a written declaration of intent in which the parties state their interest in a future collaboration or the conclusion of a contract.
Zebra companies are start-ups that are characterised by their striving for social responsibility, environmental awareness and sustainable business practices, without losing sight of profitability.
Convertible loans are a form of financing that offers investors the opportunity to convert the borrowed capital into equity shares in the company under fixed conditions, typically during a future financing round.
A Virtual Stock Option Plan (VSOP) offers an innovative form of employee participation by granting virtual options that can be converted into monetary payments in the event of certain events such as a company sale.
Vesting is the process by which employees, founders or investors acquire their shares or share options over a fixed period of time, thereby promoting their long-term commitment to the company.
Venture capital companies are specialised financial institutions that invest capital, expertise and networks in start-ups and young companies with high growth potential.