What are prices and what do they mean?

– Definition of Prices Let’s start with the definition of prices. The price of an item or service is the amount of money charged for it. A piece of apparel, for example, costs a specific amount of money. Alternatively, a computer professional may change a fee to repair your computer. Prices obviously apply to both goods and services.

What is a list price?

The list price or headline price is the cost you set to interest buyers in your products or services. When reading newspapers or checking online, customers find the list price, which may vary depending on the dealers.

What is the price of an item or service?

The price of an item or service is the amount of money charged for it. A piece of apparel, for example, costs a specific amount of money. Alternatively, a computer professional may change a fee to repair your computer. Prices obviously apply to both goods and services. However, the definition of prices does not stop here.

What is the net price of a product?

Net price is the cost that customers are willing to pay for a product or service. It not only includes the product's list price but the taxes and discounts applied to a product. For example, a product with a $100 list price in a state with 7% sales taxes adds $7 to that price, as 7% of $100 is $7.