Average Selling Price (ASP)
Average price at which an AE closes deals, before discounting
What is Average Selling Price (ASP)?
Average selling price is the average revenue per closed deal, or per unit sold. It shows the typical price at which a business sells.
It is a basic measure for understanding revenue, since revenue equals volume multiplied by price.
How this KPI is measured
- Function
- Sales
- Sub-function
- Quota & Attainment
- Industry
- All Industries
- Type
- Lagging
- Impact
- Revenue
- Unit
- $
- Measurement frequency
- Monthly / Quarterly
- Formula
- Total revenue from closed deals / Number of closed deals
How to calculate it
Divide total revenue from closed deals by the number of closed deals.
For example, if 40 deals closed with total revenue of 800,000, the ASP is 20,000.
Break it down by product and customer type, since a blended average can hide important differences.
Where it is used
Understanding revenue drivers
Separate price from volume.
Planning targets
Estimate deals needed for a revenue goal.
Monitoring pricing
Watch price levels over time.
How to improve it
Tips and common mistakes
- A few large deals can distort the average. Look at the median too.
- Compare over consistent periods.
- Keep definitions the same.
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