The average selling price, or ASP, is the revenue earned from a defined group of sales divided by the corresponding number of units sold over the same period.
It describes the average realised price per unit. It is different from a list price, a seller’s asking price or an average of unsold items advertised for sale.
How to calculate ASP
The formula is: ASP = relevant sales revenue ÷ corresponding units sold. The Entaj prospectus uses this revenue-per-unit definition. Define the product group, period and unit before calculating it.
Suppose a shop sells 90 standard items at $10 and 10 premium items at $20. Revenue is (90 × $10) + (10 × $20) = $1,100. It sells 100 items, so ASP is $1,100 ÷ 100 = $11.
Simply averaging the two prices gives $15, which is not the ASP of these sales. That calculation gives each price equal weight, although nine times as many standard items were sold. Averaging the price of every individual unit sold would give the correct $11.
Use matching numerator and denominator definitions. If sales are measured net of discounts or returns, the corresponding unit count must be consistent. State whether taxes, delivery or bundled services are included. Company and platform definitions can differ.
For example, Amazon distinguishes ASP from average offer price and applies specified periods and exclusions to its own reference-price measure. Those platform rules are not a universal definition for every business.
Why a higher ASP may not mean higher prices
Now suppose the shop sells 20 standard items and 80 premium items, with both prices unchanged. Revenue becomes $1,800, and ASP is $18. The rise from $11 reflects a shift towards premium products, called a product-mix effect.
Discounting, changes in sales channels, customer mix, exchange rates and product specifications can also affect an aggregate ASP. Comparing the same products on consistent terms helps distinguish these effects from individual price changes.
ASP alone does not establish demand sensitivity or pricing power. A change in sales may also reflect seasonality, availability or marketing. Nor does ASP measure profitability: gross profit requires the corresponding cost of goods sold, and operating profit requires further expenses.
Other averages and sector measures
A mean can be influenced by a few expensive sales. The median, the middle price when observations are ordered, and the distribution of prices can provide additional context. An average of different products may describe a business’s sales mix without describing a typical item particularly well.
In hotels, average daily rate divides room revenue by rooms sold. It concerns room-nights sold, while revenue per available room uses available room-nights. These denominators answer different questions, so the measures are not interchangeable.
Last checked and updated on November 10, 2026 by the MBN editorial team.