- published: 14 Jan 2016
- views: 212391
The term "fixed price" (as in: fixed-price contract) is a phrase used in the English language to mean that no bargaining is allowed over the price of a good or, less commonly, a service. As bargaining is very common in many parts of the world, outside of retail stores in Europe or North America or Japan, this makes this an exception from the general norm of pricing in these areas.
In the United Kingdom, "fixed price" has a similar meaning, and commonly indicates that an external party (often the government) has set a price level, which may not be varied by individual sellers of a good or service. As part of their rule of honesty and plainness, Quakers set a fixed price for their wares.
Fixed prices can require more time, in advance, for sellers to determine the price of each item (except perhaps at a dollar store). However, the fixed-price items can each be purchased faster, but bargaining could set the price for an entire set of items being purchased, reducing the time for such bulk purchases treated as a whole batch. Also, fixed-price items can help in pre-determining the value of the entire inventory, such as for insurance estimates.
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