selling price


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Price

The value of a thing with real or perceived worth. Price represents the amount of value the market has assigned, fairly or unfairly, to a good or service. Normally, prices are expressed in terms of money, but practices such as countertrade and PIK securities indicate that prices may be expressed in goods: "four chickens for two sheep." Price is a necessary component of trade.

Prices tend to be regulated by the law of supply and demand; that is, a price of a good or service increases with smaller supply and/or greater demand. A corollary to this is the idea that commoditization drives prices down because it increases supply (sometimes vastly) while leaving demand the same. Prices likewise rise when the value of money declines. Governments can and have controlled the prices of certain goods and services by subsidy or decree. This is usually an anti-inflationary measure and tends to distort, rather than eliminate, the law of supply and demand. It is thus not generally sustainable as a mechanism for controlling price.

selling price

the PRICE at which a firm offers a product for sale. Selling price is usually set at a level that covers PRODUCTION and SELLING COSTS and an appropriate PROFIT MARGIN.
References in periodicals archive ?
The long-term goal for Apple has to combine both unit shipment growth (likely requiring meaningful market segment share gains) and average selling price growth (through a broader portfolio of products and aggressive product and feature segmentation) to keep the iPhone business as a growth engine for the company. 
dollars decreased 4.5 percent to $187.3 million in the quarter due primarily to unfavorable currency translation rate changes partially offset by selling price increases and higher paint sales volume.
The Second Circuit disagreed with the Tax Court, holding that royalties calculated as a percentage of the selling price and incurred only upon the sale of the inventory were deductible as ordinary and necessary expenses under Sec.
Mr Morgan said: "London is a strong market with considerable international as well as domestic demand." He described the results as "robust" and said: "Through decisive management action, particularly the introduction of the New Heritage collection, we have been able to increase average selling prices and margins by changing mix and keeping costs under control."
Slowing demand has reduced selling prices for cement in Taiwan since the fourth quarter of last year.
The Near West Side marked the biggest increase in selling price in Chicago.
The long products division, which takes in Teesside Cast Products, the Beam Mill at Lackenby and the special profile plant at Skinningrove, reported a 7% drop in turnover to pounds 1.3bn in the first six months of 2006, driven by an 8% reduction in average selling price.
The company credits the increase in sales to an $83-per-ton, or a 19 percent, increase in selling price that was partially offset by a 5.5 percent decrease in shipments.
The preliminary data showed a median selling price increase of nearly 17 percent in 2004 compared to the previous year.
Other areas covered include a comprehensive outlook for each geographic region by monitor type and size, unit growth, average selling price, and the associated total revenue value of the display market for the years 2002-2007.
So to calculate your profit margins, take the selling price ($100) and subtract the price you paid to acquire that product ($60), as well as operating costs and overhead (let's say it averages out to $15).
The rise in the selling price of drug basic materials will cause an increase in the selling price of drugs in the country as the basic material account for 25% of the production cost.