13 Types of Prices and their definitions

  • Jul 26, 2021
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Before mentioning the price types, it is fair to establish a definition of the term so that the subject in question is clearer.

It is the value of the cost of a product or service, already put in real money. It is usually measured in monetary units, which have an assigned value that varies for each country.

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In this sense, the price shows the compensation relationship that exists between the goods and services of the market, where the people have access subject to the different laws of supply and demand and in certain cases to regulations governmental.

Based on the demand for a specific product, the assigned price can go up or down, for this reason prices are considered as an economic guide that refers to the production of goods and / or services and their consumption, ensuring that there is an accepted balance in the market.

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In this article you will find:

Price types

Price increase

This concept is used within the budgetary scope to estimate the cost of a work, taking into account the index of country inflation where they will be carried out. It is common in long and medium-term jobs, with considerable duration, for which fluctuations in the price of materials, labor and services are considered.

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Gross price

It is the real price where the amounts have not required any calculation, either by reduction, discount or tax.

Cost price

It is known by this name at prices where sales do not have a profit margin for the seller, that is, he does not receive a profit.

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Ask price

It is the price that consumers are willing to pay for a product or service they get in exchange.

Price in law

As for the right, the prices are designated with a monetary consideration, which is valid only in purchase, sale or lease contracts.

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Equilibrium price

These are the prices of a product, good or service offered in the market, which are the result of the relationship between offer Y demandThis means that it is the price that producers offer in a certain quantity and consumers are willing to pay.

Fixed price

The value assigned to a product is known as a fixed price, which for no reason is subject to discounts.

FOB price

It is an acronym used in international trade that means free on board price, and refers to the specific value in a sale determined, where the transport costs, tariffs, insurance and other expenses incurred before putting the product for sale, are a matter of the buyer.

Sale price

It is the cost where a value of a certain product for sale has been estimated from the beginning. In these neither discounts nor taxes are considered, since it is the original price that the The manufacturer has suggested to the trader so that he can perceive in his reports a certain margin of gain.

Market price

This concept is understood as the price induced by different real buying and selling operations.

Net price

It is the price that consumers pay for a certain product or service, after deductions or additions that refer to discounts and taxes were made.

Offer price

It is designated by the seller of said merchandise or service, this is established according to different criteria of law, also by other factors that limit your earnings for the units that have been sold out.

Unit price

It is the price that is assigned to each unit of a specific product, so that sales can be more detailed.

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