Unit price
 | This article's lead section may be too short to adequately summarize the key points. (November 2009) |
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.[1][2] The "unit price" tells you the cost per pound, quart, or other unit of weight or volume of a food package. It is usually posted on the shelf below the food. The shelf tag shows the total price (item price) and price per unit (unit price) for the food item.
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.[3]
Unit price also is often used in the commodities trade.[4]
See also
References
- ^ Unit Price
- ^ UK metric association
- ^ Guthmann, Harry G. (December 1965). "The Market Impact of Large Blocks of Stocks". Journal of Finance. 20 (4). American Finance Association: 617–619. doi:10.2307/2977250. JSTOR 2977250.
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