Selling Price

Published by MBA Skool Team, Last Updated: January 22, 2018

What is 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.

 

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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