What is Average Selling Price (ASP)?

Average Selling Price (ASP) refers to the price at which a certain product or service is to be sold. Selling price can also be known as market price, list price, or standard price. And the following factors help organizations determine the selling price of its products:

• The price a buyer is willing to pay
• The price a seller is willing to accept
• The price that's competitive in the market

Average Selling Price is also used as a benchmark for businesses to determine a selling price for their product. For example, if ASP for PC’s is X, and let’s say we are trying to determine the selling price for our high-end PC. We are most likely to place our selling price above the ASP to stand out as a luxury PC provider.

Average Selling Price (ASP) Formula:

Selling Price = Cost Price + Profit Margin