What Does List Price Stand For?

List price is the suggested retail price a manufacturer sets for a product. List prices are also used for products and services not offered at traditional stores.

Not a Rule

List price is not the absolute price at which a retailer or anyone else has to sell a product. List price is a suggested price by the manufacturer but the product can be sold at a higher or lower price.

Retailers

Retailers do not pay list price for products since they have to build in a profit margin. Discount retailers will often receive further reduced pricing on products for buying larger quantities.

Bulk Products

Oftentimes list price is printed directly on bulk manufactured products (chips, books, etc.). Retailers can then add their own price sticker showing a lower price.

Houses

Houses are listed at a certain price, but that price can be negotiable. If it is a seller's market, then homes will often go for above the list price.

Automobiles

Cars can also be sold for more or less than the list price, depending on the popularity of a vehicle, whether it is the beginning or end of the model year, and other factors.

References

• What is a list price?