Definition

List price and net price

net price · list price · RRP · trade price

The list price is the reference price published by the supplier or distributor; the net price is the amount actually invoiced to a given customer after their discount. The first is a shared calculation basis, the second is the only figure that commits anyone.

Director of publication : Florian Précigout

Having both is not a leftover: it makes it possible to run thousands of references without renegotiating every price. The distributor maintains a price base, and the customer relationship is settled through a rate applied to that base — what the trade calls a discount matrix.

The side effect is familiar at the counter: a workshop comparing two quotes sometimes compares a list price against a net price, and concludes there is a gap that does not exist. Showing the basis and the discount rather than only the final figure defuses the discussion before it starts.

On fast-moving parts, list price becomes largely theoretical: nobody buys at that price any more. It keeps its usefulness as a stable reference for calculating, comparing and justifying.

The trap

Quoting a price without saying which one. "The part is 180" does not mean the same thing as a list price or as a customer net — and that is exactly the misunderstanding that resurfaces on the invoice.

Frequently asked

Is list price imposed by the supplier?

No. It is a reference or recommended price; the resale price is set freely by the distributor, and imposing a resale price is in any case prohibited.

Why not work only in net prices?

Because the shared basis underpins everything else: discount calculation, comparison across ranges, stock valuation, margin control. Removing list price would mean renegotiating line by line.