Unit price


Unit price

Unit price is a valuation method for buyers who purchase in bulk.

Examples

Buyer seeks to purchase 10000 widgets. Seller One offers 1000 widgets packaged together for $5000. Seller Two offers 5000 widgets packaged together for $25000. Seller Three offers 500 widgets packaged together for $2000. All three sellers can offer a total of 10000 widgets to Buyer. Seller One offers widgets at a unit price of $5. Seller Two offers widgets at a unit price of $5. Seller Three offers widgets at a unit price of $4. Buyer uses unit price to value the packages offered by each of the three sellers and finds that Seller Three offers widgets at the best value, the best price.

Application

In retail, unit price is the price for a single unit of measure of a product sold in more or less than the single unit. [ [http://www.umass.edu/nibble/infofile/unitpric.html Unit Price ] ] [ [http://www.ukma.org.uk/Practical/shopping/unitprices.htm UK metric association ] ]

Unit price is a common form of valuation in sales contract for goods sold in bulk purchasing.

The stock price of securities is a form of unit price because securities including stocks are often sold in bulks comprising many units. [cite journal |last=Guthmann |first=Harry G.|coauthors=Archie J. Bakay |title=The Market Impact of Large Blocks of Stocks |journal=Journal of Finance |volume=20 |issue=4 |pages=617–619 |publisher=American Finance Association |date=December 1965 |doi=10.2307/2977250]

Unit price also is often used in the commodities trade. [ [http://www.slate.com/id/2115219/ Slate.com (oil measured by barrels)] ]

ee also

*Ask price
*Suggested retail price
*Bulk purchasing

References

External links

* [http://www.sec.gov/index.htm SEC]


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Look at other dictionaries:

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