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A fire sale is the sale of goods at extremely discounted prices. The term originated in reference to the sale of goods at a heavy discount due to fire damage . It may or may not be defined as a closeout , the final sale of goods to zero inventory .
Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market capitalization by the revenue in the most recent year; or, equivalently, divide the per-share stock price by the per-share revenue.
The list price, also known as the manufacturer's suggested retail price (MSRP), or the recommended retail price (RRP), or the suggested retail price (SRP) of a product is the price at which its manufacturer notionally recommends that a retailer sell the product.
In business this requested amount is often referred to as the offer price or selling price, while the actual payment may be called transaction price or traded price. Economic price theory asserts that in a free market economy the market price reflects the interaction between supply and demand : [2] the price is set so as to equate the quantity ...
Cost × (1 + Markup) = Sale price; or solved for Markup = (Sale price / Cost) − 1 or solved for Markup = (Sale price − Cost) / Cost. Assume the sale price is $1.99 and the cost is $1.40; Markup = ($1.99 / 1.40) − 1 = 42% or Markup = ($1.99 − $1.40) / $1.40 = 42%. To convert from markup to profit margin: Sale price − Cost = Sale price ...
Profit margin is calculated with selling price (or revenue) taken as base times 100. It is the percentage of selling price that is turned into profit, whereas "profit percentage" or " markup " is the percentage of cost price that one gets as profit on top of cost price.
Psychological pricing (also price ending or charm pricing) is a pricing and marketing strategy based on the theory that certain prices have a psychological impact. In this pricing method, retail prices are often expressed as just-below numbers: numbers that are just a little less than a round number, e.g. $19.99 or £2.98. [1]
The law of supply is a fundamental principle of economic theory which states that, keeping other factors constant, an increase in sales price results in an increase in quantity supplied. In other words, there is a direct relationship between price and quantity: quantities respond in the same direction as price changes.
A closeout or clearance sale (closing down sale in the United Kingdom) is a discount sale of inventory either by retail or wholesale. It may be that a product is not selling well, or that the retailer is closing because of relocation, a fire (a fire sale), over-ordering, or especially because of bankruptcy.
A market-clearing price is the price of a good or service at which the quantity supplied equals the quantity demanded, also called the equilibrium price. The theory claims that markets tend to move toward this price. Supply is fixed for a one-time sale of goods, so the market-clearing price is simply the maximum price at which all items can be ...