Capterra Glossary
Net Price
Net price is the exact price paid for a product or service. Unlike list prices, net prices account for taxes, fees, and discounts. To calculate the net price of their offerings, businesses first start with the list price (the value that they paid to buy a product or service from a distributor, wholesaler, or retailer). The business then adds any applicable taxes or fees and subtracts any discounts or rebates from the list price to get the net price of a product or service offering. Net prices help businesses determine a pricing strategy that allows them to offer competitive pricing while turning a profit.
What Small and Midsize Businesses Need to Know About Net Price
Small and midsize businesses often calculate the net price of their goods and/or services to determine what price they should charge customers when those offerings enter the market. To turn a profit, small businesses must be able to sell their products for a higher price than what they spent to create or obtain them.