FACTORY PRICE Meaning and
Definition
-
Factory price refers to the cost at which a product or goods are sold by the manufacturer directly to retailers, wholesalers, or distributors, without the inclusion of any markup or additional charges. It is the price charged by the factory, excluding any additional costs such as transportation, advertising, or packaging that may be added by intermediaries in the supply chain.
As the products are sold directly from the manufacturer, the factory price is typically the lowest possible price at which the product can be obtained. It is often considered an advantage for businesses and organizations looking to purchase goods in large quantities, as it allows them to secure products at a lower cost compared to retail prices.
The factory price is determined by various factors including production costs, labor expenses, raw material costs, overheads, and even market demand. Different manufacturers may have different pricing strategies and markup levels, depending on their production capabilities, economies of scale, and market competition.
By purchasing products at factory prices, retailers, wholesalers, or distributors can benefit from increased profit margins when reselling the goods to end consumers. This pricing structure also allows manufacturers to maintain a competitive edge in the market, as it reduces the reliance on intermediaries and strengthens their relationship with buyers.
Overall, factory price represents the baseline cost of a product set by the manufacturer, serving as the foundation for pricing strategies and negotiations throughout the supply chain.
Common Misspellings for FACTORY PRICE
- dactory price
- cactory price
- vactory price
- gactory price
- tactory price
- ractory price
- fzctory price
- fsctory price
- fwctory price
- fqctory price
- faxtory price
- favtory price
- faftory price
- fadtory price
- facrory price
- facfory price
- facgory price
- facyory price
- fac6ory price
Etymology of FACTORY PRICE
The term "factory price" originates from the combination of the words "factory" and "price".
The word "factory" has its roots in Latin, deriving from the word "factorium", meaning "workshop" or "trade establishment". It later evolved to "factore", referring to a person who manages or does work. In English, "factory" originated in the late 1500s, denoting a place where goods are manufactured or produced on a large scale.
The word "price" comes from the Latin word "pretium" meaning "value" or "worth". It entered Middle English in the 13th century, referring to the amount of money or goods required to acquire or sell something.
When combined, "factory price" refers to the cost or value of a product when purchased directly from the manufacturing facility or producer.
Similar spelling words for FACTORY PRICE
- factor vii,
- factor iii,
- factor viii,
- factor xii,
- factory ship,
- factory-made,
- factor xiii,
- factory whistle,
- factory worker,
- factor out,
- factory farm.
Infographic
Add the infographic to your website:
