Average Selling Price - ASP

Filed Under:
Dictionary Says

Definition of 'Average Selling Price - ASP'


The price a certain class of good or service is typically sold for. Average selling price is affected by the type of product and the product life cycle. Products, like computers, cameras, televisions and jewelery will tend to have higher average selling prices while products like books and DVDs will have a low average selling price. When a product is the the latter part of its product life cycle, the market is most likely saturated with competitors therefore driving down the ASP.

ASP can also refer to the housing market. When the average selling price of a house within a particular region rises this may be a signal of a booming market.

Investopedia Says

Investopedia explains 'Average Selling Price - ASP'


Marketers who are trying to set a price for a product must also take into consideration where they want their product to be positioned. If they want their product image to be part of a high quality choice they have to set a higher ASP.

ASP can refer to the average selling price of the product across multiple distribution channels, across a product category within a company or even across the market as a whole.

comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center