BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The difference between list price vs. net price is that list price primarily depends on how buyers value your product or service. On the other hand, the net price is determined by how much profit you intend to make after offering discounts and specials.

Detailed explanation-2: -While the list price is the maximum price at which a product can be sold, the net price is the price at which the customer buys it.

Detailed explanation-3: -It’s also known as the manufacturer’s suggested retail price (MSRP) or “sticker” price. For example, on a sale tag or listing, the list price is often followed by any amounts for discounts, followed by the discounted subtotal before taxes. The final amount is the net price.

Detailed explanation-4: -The list price or the MSRP is set by the retailer or the shopkeeper, in reaction to the changes in the local markets. It is also known as the price list in India. The cost price can’t be greater than the MSRP and the MSRP can’t be greater than the MRP. A related concept is also the MAP or the Minimum Advertised Price.