Unit price is also a valuation method for buyers who purchase in bulk. Buyer seeks to purchase 10000 widgets. Seller One offers 1000 widgets packaged together for $5000. Seller Two offers 5000 widgets packaged together for $25000. Seller Three offers 500 widgets packaged together for $2000. All three sellers can offer a total of 10000 widgets to Buyer. Seller One offers widgets at a unit price of $5. Seller Two offers widgets at a unit price of $5. Seller Three offers widgets at a unit price of $4. Buyer uses unit price to value the packages offered by each of the three sellers and finds that Seller Three offers widgets at the best value, the best price.
Unit price is a common form of valuation in sales contract for goods sold in bulk purchasing.
The stock price of securities is a form of unit price because securities including stocks are often sold in bulks comprising many units.
Unit price also is often used in the commodities trade.
Read more about Unit Price: Purpose, Construction, See Also, References
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