Selling Price

Posted in Marketing and Strategy Terms, Total Reads: 901
Advertisements

Definition: Selling Price

Selling price is the price that a company charges for its product from a buyer. After the price is paid, ownership of good is transferred from the seller to the buyer.


There are many factors which decide the selling price of a product:

• Highest price that buyer is willing to pay

• Lowest price that seller is willing to accept

• Price that competition will allow

Some companies form a cartel by colluding with other suppliers in order to control the selling price. This action is against the law and punishable crime.

 

For example: Selling price of wafer chocolate is Rs 10. A buyer is not willing to pay more than this and seller will not accept any price less than Rs 10. Also other competitive wafer chocolates are also sold at the same price like Perk, Munch, etc.

 

Advertisements



Looking for Similar Definitions & Concepts, Search Business Concepts