Difference between net price & list price

Updated March 23, 2017

The price of a product or service is the amount of money that will pay for weight, quantity or measure of that product or service. Ultimately, the final pricing is determined by the retailer.

List Price

The list price is that given before discounts, before rebates are subtracted and before taxes are added. The list price is often found in a catalogue, in an advertisement or in a printed list.

Net Price

The net price is the price after all discounts and rebates are subtracted from the list price. Most sales taxes are based on the net price.

Other Names for List Price

The list price is also known as the retail price or the "manufacturer's suggested retail price" (MSRP). Where there are no discounts or rebates, the list price and the net price are the same.

Factors in Price Determination

Prices are determined by how much people are willing to pay for a product or service. They're also determined by what a seller is willing to accept, and what the competition charges for the same or similar products and services.

Wholesale and Gross Price

The wholesale price is the price a retailer pays to the supplier. The gross price is the price after all taxes, shipping and surcharges are added to the net price.

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About the Author

Kevin Boone is a current student at Chattanooga College and graduated from Pellissippi State in 2000 with an associate degree in electrical engineering. He has written safety-related procedures and documents for organizing power system components and holds his A+ Certification for Computers.