Definition: The average amount the product was sold for. The amount someone, on average, paid for a product.

Note: Takes discounting into consideration but not cost of goods.

Equation: Total Revenue / Total Units

Example: Average Item Price is used to understand how much people are paying for a product or an aggregation of a product. Retailers use this measure as an indicator if their product is being sold at a much lower price than what they want. Since discounting is taken into consideration when looking at this metric, this could also give retailers an initial sign that discounting is getting too high. This metric can also be seen through time or a single metric for a set amount of time.