ASP (Average Selling Price)

The average price at which deals actually close — as opposed to list price.

The cleanest read on discounting

ASP falling while list price holds means discounting is increasing. That is a pricing-power signal, and it usually appears before it shows up in margin.

Track the discount distribution

A stable average can hide a widening spread — most deals at list and a growing tail at heavy discount. The tail is where policy is failing.

RELATED TERMS

Average Contract Value (ACV)

The annualised value of a contract, averaged across a set of deals. The standard unit for comparing new business.

Average Deal Size

The mean value of closed-won opportunities over a period. An input to pipeline velocity and capacity planning.

Gross Margin

Revenue minus cost of goods sold, as a percentage of revenue. Whether the business model scales.

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