Posted in Marketing and Strategy Terms, Total Reads: 344
Definition: Sales Price
Sales price is the amount of money for which a company is offering its products and services to the customer. A sales price is determined by a large number of factors: raw material which goes into processing, labour cost, logistics costs, competitors etc.
The sales price is the final price of the product which is being sold. It includes the profit margins of the producer or service provider. Determination of sales price is of utmost importance because it is one of the dominant factors which is being considered by the consumers before buying the product. In case, the product is being offered by several companies, a manufacturer has to keep in mind the competition as well before fixing a price to the product.
Sales price is different to a sale price. A sale price is the discount offered on the product for the customer whereas the sales price is the final cost of the product. There are various pricing strategies which are used by firms to keep their product alive in the market. Though a pricing strategy encompasses many things, a sales price is critical part of the pricing strategy.