A value that will purchase a finite quantity, weight, or other measure of a good or service.

As the consideration given in exchange for transfer of ownership, price forms the essential basis of commercial transactions. It may be fixed by a contract, left to be determined by an agreed upon formula at a future date, or discovered or negotiated during the course of dealings between the parties involved.

In commerce, price is determined by what (1) a buyer is willing to pay, (2) a seller is willing to accept, and (3) the competition is allowing to be charged.

With product, promotion, and place of marketing mix, it is one of the business variables over which organizations can exercise some degree of control.

It is a criminal offense to manipulate prices (see price fixing) in collusion with other suppliers, and to give a misleading indication of price such as charging for items that are reasonably expected to be included in the advertised, list, or quoted price.

Also called sale price and selling price.

Use price in a sentence

  • The price of stock prices are influenced by national, regional economic news, government policies, the companies performance, and or simply by the excitement or the panic of investors of this stock.

    4 people found this helpful
  • The price of this hat is 10 dollars. However, with a little bit of haggling I was able to get the store owner to lower the price to 8 dollars.

    7 people found this helpful
  • There where so many luxury vehicles to choose from however, the woman had to look at all the prices to see if she could afford the car.

    9 people found this helpful
Show more usage examples...

Notable Quotes

  • Getting What You Pay For?
    "If something is priced high, that does not necessarily mean it is of higher quality. More often than not, it just means it cost more to put it in front you in hopes that you will buy it. Other times, it could just mean somebody is greedy."
    - Siam Luu

Related Videos

Have a question about price? Ask for help in the
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z