What does in-kind meaning mean? The word in kind usually refers to tangible products, services, and dealings not involving cash or not measured in monetary units. It’s part of most sectors, mainly economy, finances, but also marketing, business, health, home, etc. The concept of in-kind is useful as it helps companies advertise their products more efficiently as well as ensuring that the prices of their products are transparent and standardized.

Companies use in-kind pricing to maintain – a level of uniformity in their product offerings and to avoid any discrepancies between the price tag of their products on the one hand and the market cost on the other. If you go to a departmental store for example, you’ll be confronted with several brands, models, prices, and so on. And all these items are priced similarly. The item in-kind thus serves to reduce differences in costs and to create a level playing field in the market for the goods.

In addition, the uniform pricing makes it easier for retailers to sell their products – It provides them a uniform means to establish the price of their item in the market. Retailers who don’t adhere to the in-kind policy will find themselves at the losing end. They may be forced to introduce variable prices for their items, or else be charged with mark-up cost for not including an item in their inventory. They may even lose their credibility in the market.

Most companies in the retail industry to follow this practice – For example, an item bought from a departmental store can be found priced in-store by the shelf name or by the unit. But if you wish to compare the prices of similar items on online stores, you’ll be confronted with the problem of price comparisons. Compare prices in the same category (say, by brand) but in different sites. You’ll be confronted with the probability of merchants manipulating the price structure to attract more customers.

So what does in-kind mean when talking about pricing? It suggests that a merchant will be charged a flat rate for a given item. This price is a known as the “in-kind price” for the reason that the merchant provides the same product at the same place where it’s bought. Thus, it’s called in-kind. What does in-kind also imply is that the merchant won’t be charged a commission fee for any markup added to the price of the item when it’s bought in the market.

So what does in-kind really have to do with pricing? The truth is that the idea applies equally well to other transactions. Say for instance that you go into a shop to buy a loaf of bread. It would make sense to buy the most inexpensive loaf you can find and then pay less for the more expensive one if you can. In some instances, this could be done by wrapping the more expensive item in layers or bundles so that you get a better deal.

However, bundling the item is not what we’re talking about here and the markup to be charged is not an in-kind transaction.