What is a List Price?
List price refers to the manufacturer’s suggested retail pricing. It may or may not be the price asked of the consumer. Much depends on the product itself, the built-in profit margin, and supply and demand. A product that is in high demand with low availability will sometimes sell higher than the list price, though this is less common than the reverse. Virtually all products have a suggested retail or list price. This assumes the product is sold individually to the end-user or consumer. Resellers buy products in bulk and get a substantial discount in order to be able to profit from selling the product at or below list price. Products that are inexpensive to manufacture and manufactured in great bulk can have large built-in profit margins. Retailers often offer such products at great discounts of 50% or more. Sales on items like this can draw in customers that will buy other products as well. The list price is often printed on a product, while retailers usually place their own sticker n
A list price is generally the same as the “manufacturer’s suggested retail price.” Basically, it’s supposed to represent what the item is actually worth in a retail establishment. Sometimes though, it’s just a price that is indexed in proportion to the seller’s overally inventory so that any price increases can be applied across the board.
