Average selling price (ASP)
Definition
Measures the average selling price of your businesses products or services. It’s a great indicator of whether discounting is driving down revenue. The ASP is used to measure the market value of a good or service. It is a useful metric for businesses to track as it can provide insight into pricing trends and customer demand.
How is Average selling price (ASP) calculated?
The ASP can be calculated for a single good or service, or for all goods or services. Upzelo calculates the ASP all goods or services, using the total revenue from sales of all goods or services, divided by the total number of units sold
The formula for calculating Average selling price (ASP) is:
ASP = ( MRR / No. of customers in period ) x100
Why is Average selling price (ASP) important to measure?
The ASP is an important metric for businesses to track as it can provide insight into pricing trends and customer demand. It can also be used to benchmark the performance of a business against its competitors.
Frequently asked questions
Have another question? Reach out to our retention expert team.
- What factors can affect the ASP?
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The Average selling price in your account may fluctuate over time, as it is impacted by relevant factors such as:
- Changing market conditions.
- Pricing updates / changes.
- Seasonal factors, such as holidays.
Related terms
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