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An established price is any pricing or rate that is widely known to be the price that is normally paid for a good or service. Pricing of this type is common with just about every good or service that is sold in any consumer market. Sometimes referred to as the standard price, the established price serves as the basis for creating retail pricing and may also provide the foundation for arriving as some sort of discounted pricing based on volume purchasing.
There are essentially two classifications of the established price. An established market price has to do with the published and prevailing rate that is arrived at by the negotiations that take place between buyers and sellers in that marketplace. In this scenario, the rate that is considered prevailing may also be referred to as the standard and usual price. Part of the identification of this price involves using information that is obtained from various sources not controlled by either the supplier of the good or service, or the manufacturer of the product.
Another form of the established price is known as the established catalog price. Sometimes known as a rack rate, this form of pricing is usually published in some sort of listing, such as a print catalog, a price list provided by a vendor or supplier, or even the pricing posted on a website such as an online store. Pricing information of this type is readily available to everyone including potential customers, and constitutes the price that consumers pay when buying the goods or services without benefit of some sort of contract that ensures rates other than the established price. Retailers will sometimes post the established price along with the sale price of a given good, providing the consumer with the chance to see how much of a savings could be garnered if that good is purchased now rather than waiting until the item is no longer on sale.
Consumers typically look closely at the published or established price when considering the possibility of making a purchase of any goods or services. The prices provides the basis for comparison between products that are very similar in quality and function, making it possible to buy what is desired while still expending the least amount of funds. The established price also serves as the beginning point of negotiations between a buyer and seller, with the buyer often seeking to receive some sort of discount off the established or standard price by means of agreeing to purchase multiple units over a certain period of time or to make a single bulk purchase in exchange for a one-time lower rate per unit.
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