Legal Definitions - list price

The list price refers to the initial, advertised, or recommended retail price of a product or service as set by the manufacturer, seller, or service provider, before any discounts, negotiations, or special offers are applied. It represents the standard price at which an item is offered for sale to the general public.

• Example 1 (Retail Product): A popular electronics brand launches a new laptop model. They announce that the list price for this model is $1,200. This is the standard price consumers would expect to see at most retailers, before any holiday sales, student discounts, or trade-in promotions are applied.

  Explanation: The $1,200 is the baseline price established by the manufacturer, serving as the initial public offering price from which any subsequent discounts or special deals would be calculated.

• Example 2 (Professional Service): A car repair shop displays a sign stating that their standard labor rate, their list price, for mechanical work is $120 per hour. While they might offer a bundled service package at a slightly reduced effective rate, $120 per hour is their publicly posted, standard charge for individual hours of labor.

  Explanation: The $120 per hour represents the shop's official, non-negotiated rate for their service, indicating what a customer would typically pay without any special agreements or packages.

• Example 3 (Real Estate): A commercial property owner decides to sell an office building and, after market analysis, sets an asking price of $2.5 million. This $2.5 million is the list price for the property. Prospective buyers will then submit offers, which may be higher or lower than this initial asking price, leading to negotiations.

  Explanation: The $2.5 million is the initial price at which the seller publicly offers the building for sale, establishing the starting point for discussions and offers from interested parties.