The Bull

Wednesday 19

December, 2018 5:22 PM



DICTIONARY : A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Average selling price

What does it mean?

 

The price that a class of services or goods is typically sold at is known as the average selling price, or ASP. The life cycle of a product spans the length of time from the product’s development and introduction to the market to the point where it is withdrawn from the market. The life cycle affects the average selling price of a product. For example, if a product has been available for a while and many competitors also enter the marketplace, the average selling price is likely to go down.

 

Who determines the average selling price?

 

The ASP is a general term that relates to the average cost of a product. The ASP can also be limited to a single company’s product, or a selection of distribution channels ranging from wholesalers, brick-and-mortar retailers and e-commerce firms. The average selling price of a product can be more or less conspicuous depending not only on the type of product but also on the type of industry that makes the product.

 

Average selling prices as related to the housing market

 

The housing market tends to be one of the more visible industries when it comes to average selling prices, and, in fact, the term is very common in that marketplace. The entity trying to sell a product, such as a home, must keep in mind a multitude of factors when they are setting the price for their product, but they also must be aware of how they want their product to be positioned as a means of marketing the product. A regional market boom may see the average selling price for homes rise, and if a home already is in the higher end of the market, they may also increase prices quickly to maintain the image of higher quality.

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