Unit price: Difference between revisions
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==See also== |
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*[[Ask price]] |
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*[[Suggested retail price]] |
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*[[Bulk purchase]] |
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==References== |
==References== |
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Revision as of 03:50, 21 October 2007
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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
Unit price is a common form of valuation in contract sales for goods sold in bulk.Cite error: There are <ref> tags on this page without content in them (see the help page).
The stock price of securities is a form of unit price because securities including stocks are often sold in bulks of 100 units.Cite error: There are <ref> tags on this page without content in them (see the help page).
Unit price also is often used in the commodities trade.
See also
References
External links
- [SEC