Unit price
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Unit price is a valuation method for buyers who purchase in bulk.
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[edit] 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.
[edit] 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]
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]
[edit] See also
[edit] References
- ^ Unit Price
- ^ UK metric association
- ^ Guthmann, Harry G.; Archie J. Bakay (December 1965). "The Market Impact of Large Blocks of Stocks". Journal of Finance 20 (4): 617–619. American Finance Association. doi:.
- ^ Slate.com (oil measured by barrels)
