Average Selling Price

The average price at which a product or service is sold across all transactions, calculated by dividing total revenue by total units sold. Often compared over time or against competitors as a strategic metric.

Average selling price tracks whether pricing strategy is working. A rising ASP signals successful premium positioning or upsell execution. A falling ASP can indicate discounting pressure, mix shift toward lower-value products, or weakening positioning.

A founder sells three product tiers priced at £47, £197, and £497. After introducing a more compelling positioning for her premium tier, her average selling price rises from £89 to £167 within two quarters, significantly improving revenue without any increase in transaction volume.