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Section 10.2 Price
List Price
Most businesses have several tiers, or levels, of pricing. The list
price is the established price printed in a catalog or on a price tag. The
list price does not include any discounts, or price reductions. List price
is sometimes referred to as full price.
Selling Price
The selling price is the price a customer actually pays for the
product after discounts and coupons. It may also be called the market
price. Discounts are shown as a percentage, such as 40 percent off, or
as a dollar figure, such as $20 off. For example, an item you want to
purchase has a list price of $100. It also has an advertised 40 percent
discount. After applying the discount, the selling price is $60.
Manufacturer’s Suggested Retail Price
Some retailers use the manufacturer’s suggested retail price
(MSRP), which is the list price recommended by a manufacturer. The
A MSRP reduces price competition among similar products.
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