List price
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is list price?
List price is the published, undiscounted price of a product, set by the manufacturer in its price book. Few business customers pay list; distributors use it as the starting point for discounts, such as “list less 40%.”
How it works
In industries that price this way, a customer’s price level is stated as a multiplier of list. A multiplier of 0.55 means the customer pays 55% of the list price.
List price example
A valve lists at $200. A contractor with a 0.6 multiplier pays $120, while an occasional walk-in customer pays close to list.
Related terms
- Price matrixA price matrix is an ERP table that sets prices by pairing customer groups with product groups and giving each pair a rule, such as a discount off list.
- Price sheetA price sheet is a manufacturer’s list of the items in a product line, with part numbers, descriptions, pack quantities and list prices or costs.
- Quantity break pricingQuantity break pricing gives a lower unit price when a customer buys more of an item at once, with the price changing at set quantities called breaks.
- Contract pricingContract pricing is a set of fixed prices agreed with a specific customer for specific items over a set period, after a negotiation, bid, RFP or GPO deal.
