Net price
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is net price?
Net price is the price a customer actually pays per unit after all discounts off list have been applied, before any rebates paid later. The same idea applies to a distributor’s own cost from a supplier: the net cost after trade discounts.
How it works
Some distributors also talk about net-net price or cost, meaning the figure after rebates and other after-the-fact allowances are taken off as well. Ask which is meant when two numbers don’t match.
Net price example
A valve lists at $200, the customer’s multiplier is 0.6 and a project discount takes another 5% off, so the net price is $114.
Related terms
- List priceList price is the published, undiscounted price of a product, set by the manufacturer in its price book.
- Price matrixA price matrix is an ERP table that sets prices by pairing customer groups with product groups and giving each pair a rule, such as a discount off list.
- Contract pricingContract pricing is a set of fixed prices agreed with a specific customer for specific items over a set period, after a negotiation, bid, RFP or GPO deal.
- RebateA rebate is money paid back to a buyer after a purchase, once the buyer reaches agreed volume or growth targets over a period.
