List Price

(noun)

The manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a product is the price which the manufacturer recommends that the retailer sell the product.

Related Terms

Examples of List Price in the following topics:

  • Settling the List Price

    • A list price must be close to the maximum price that customers are prepared to pay and yield the maximum profit for the retailer.
    • Other factors that should be considered when setting a list price include fixed order amounts, quantity breaks, promotion or sales campaigns, non-price costs (travel time to the store, wait time in the store, disagreeable elements), specific vendor quotes, the price prevailing on entry, shipment or invoice dates and the combination of multiple orders or lines.
    • The manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a product is the price which the manufacturer recommends to the retailer.
    • Retailers must ask questions to set a list price.
    • A good pricing strategy is one that strikes a balance between the price floor (the price below which the organization ends up in losses) and the price ceiling (the price beyond which the organization experiences a no demand situation).

  • Geographic Pricing

    • Geographical pricing is the practice of modifying a basic list price based on the location of the buyer to reflect shipping costs.
    • Geographical pricing is the practice of modifying a basic list price based on the geographical location of the buyer.
    • Uniform delivery pricing (also called postage stamp pricing): The same price is charged to all.
    • Zone pricing: Prices increase as shipping distances increase.
    • Zone pricing is also used to price fares in certain metro stations.

  • Price Fixing

    • Price fixing is a collusion between competitors in order to raise prices of a good or service, at the expense of competitive pricing.
    • The defining characteristic of price fixing is any agreement regarding price, whether expressed or implied.
    • They might agree to sell at a common target price, set a common minimum price, buy the product from a supplier at a specified maximum price, adhere to a price book or list price, engage in cooperative price advertising, standardize financial credit terms offered to purchasers, use uniform trade-in allowances, limit discounts, discontinue a free service or fix the price of one component of an overall service, adhere uniformly to previously announced prices and terms of sale, establish uniform costs and markups, impose mandatory surcharges, purposefully reduce output or sales in order to charge higher prices, or purposefully share or pool markets, territories, or customers.
    • These are all instances of price fixing.
    • This includes exchanging prices with either the intent to fix prices or if the exchange affects the prices individual competitors set.

  • Demand Schedules and Demand Curves

    • A demand curve depicts the price and quantity combinations listed in a demand schedule.
    • Given that in most cases, as the price of a good increases, agents will likely decrease consumption and substitute away to another good or service, the demand curve embodies a negative price to quantity relationship.
    • Using a demand schedule, the quantity demanded per each individual can be summed by price, resulting in an aggregate demand schedule that provides the total demanded specific to a given price level.
    • The plotting of the aggregated quantity to price pairings is what is referred to as an aggregate demand curve.
    • It is derived from a demand schedule, which is the table view of the price and quantity pairs that comprise the demand curve.

  • Psychological Pricing

    • Inferring quality from price is a common example of the psychological aspect of price.
    • Another manifestation of the psychological aspects of pricing is the use of odd prices.
    • We call prices that end in such digits as 5, 7, 8, and 9 "odd prices. " Examples of odd prices include: $2.95, $15.98, or $299.99 .
    • Psychological pricing is one cause of price points.
    • When items are listed in a way that is segregated into price bands (such as an online real estate search), the price ending is used to keep an item in a lower band, to be seen by more potential purchasers.

  • Terms Used to Describe Price

    • We've been using the word "price" a lot.
    • The price of an item is also called the price point, especially where it refers to stores that set a limited number of price points.
    • Price is relatively less than the cost price.
    • Service providers may present you with a fee list as opposed to a price tag if you ask for the price of their services.
    • The price to ride a bus is expressed by the term "fare

  • Market Demand

    • Market demand is the summation of the individual quantities that consumers are willing to purchase at a given price.
    • The demand schedule represents the amount of some good that a buyer is willing and able to purchase at various prices.
    • The relationship between price and quantity demanded reflected in this schedule assumes the following factors remain constant:
    • A market demand schedule is a table that lists the quantity of a good all consumers in a market will buy at every different price.
    • A market demand schedule is a table that lists the quantity of a good all consumers in a market will buy at every different price.

  • Price Indices and the Rate of Change of Prices

    • Price indices are tools used to measure price changes for a specific subset of goods and services.
    • Price indices are tools used to measure price changes for a specific subset of goods and services.
    • A price index is a statistic designed to help compare how a normalized average of prices differ between time periods.
    • The CPI in 1960 would then be listed as 115 (15% greater than the base year).
    • Two common price indices are the Consumer Price Index (CPI) and the Producer Price Index (PPI).

  • The Law of Demand

    • The change in price will be reflected as a move along the demand curve.
    • The demand curve will shift, move either inward or outward as a result of non-price factors.
    • A shift in demand can be related to the following factors (non-exhaustive list):
    • The amount demanded of these commodities increase with an increase in their price and decrease with a decrease in their price.
    • A demand curve, shown in red and shifting to the right, demonstrating the inverse relationship between price and quantity demanded (the curve slopes downwards from left to right; higher prices reduce the quantity demanded).

  • Introduction to Handling Growth

    • The price of success is heavy in the open source world.
    • Consider mailing lists, for example.
    • Most projects have a mailing list for general user questions—sometimes the list's name is "users", "discuss", "help", or something else.
    • Imagine, for instance, if Microsoft had such a mailing list for Windows XP.
    • Everyone involved with the project is on the list.