ASP

ASP is the acronym for Average Sales Price.

Average Sales Price

Average Sales Price (ASP) is a key business metric that represents the average price at which a product or service is sold over a specific period of time. It is calculated by dividing total revenue by the number of units sold:

Loading formula...

Where:

Total Revenue: The total income generated from sales over a given period. This includes the full amount paid by customers before deducting any costs or expenses.
Number of Units Sold: The total quantity of individual products or services sold during the same period. This figure is essential for determining the per-unit contribution to revenue.

This metric is widely used across industries—particularly in retail, technology, and manufacturing—to track pricing trends, evaluate product performance, and inform pricing strategies. For example, in consumer electronics, ASP can indicate how well premium versus budget models are performing, while in SaaS businesses, it might reflect shifts in customer adoption of different subscription tiers.

ASP provides insight into market positioning, product mix, and customer buying behavior. A rising ASP might suggest successful upselling, increased demand for higher-end products, or inflationary pricing power. Conversely, a declining ASP could point to competitive pressure, discounting strategies, or a shift in demand toward lower-priced offerings.

While useful on its own, ASP is often analyzed alongside other metrics such as unit volume, gross margin, and customer acquisition cost to form a complete picture of revenue dynamics and profitability.