net price
Definition
Net price is the final amount a buyer actually pays for something after all discounts, rebates, and deductions have been subtracted from the original asking price. Think of it as the real bottom-line number that changes hands once every reduction has been applied.
Example
If you sell a product for $100 but offer a 10% wholesale discount and a 5% early payment discount, the net price your buyer pays is $85.
Watch Out
Make sure your contracts spell out exactly which discounts are included when calculating the net price, because leaving that vague can lead to disputes over how much is actually owed.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.