Frequently Asked Questions
What is the difference between ASP and selling price?
Selling price — also known as market price, list price, or standard price — is the amount a buyer pays for a given product or service. This price can vary depending on how much buyers are willing to pay, how much the seller is willing to accept, and how competitive the price is in comparison to other vendors. Average selling price, on the other hand, is the median amount a product in a specific category is sold for, across various markets or selling channels.
How do retailers increase ASP?
For retailers looking to increase their ASP, one of the best approaches is collecting pertinent inventory data, analyzing this data (including marketing campaigns), and then updating your product listings as needed. Your inventory reports may indicate you need to adopt new sales tactics, like minimizing discounted pricing or upgrading ad spend. Either way, it’s important to note that improving your ASP doesn’t happen overnight — but with targeted efforts and a well-prepared team, your company can drive revenue in a sustainable way.
How can you track ASP?
To successfully track your brand’s average selling price, you’re wise to call on the help of an inventory management system. Innovative inventory software has the automations you need to track and manage ASP metrics with ease, so you see where modifications to your marketing campaigns (or the selling price of a product) might boost your profit margins.