FIXED PRICE Meaning and
Definition
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Fixed price refers to a specific pricing strategy or methodology employed in business transactions, wherein a predetermined and unchanging price is set for a product, service, or agreement. It is an established cost or rate that is not negotiable and remains constant regardless of external factors such as market fluctuations or changes in demand and supply.
In a fixed price arrangement, the agreed-upon cost does not vary based on the volume of units sold or the duration of services provided. This pricing model is commonly found in various industries, including retail, construction, consulting, and software development. The set price is determined based on factors such as production costs, overhead expenses, market research, and profit margin objectives.
The advantages of fixed pricing for buyers include transparency, simplicity, and predictability, allowing them to plan and budget without unexpected price fluctuations. For sellers, it provides consistent revenue streams, reduced negotiation efforts, and straightforward accounting and financial planning.
However, fixed pricing may have limitations, as unforeseen circumstances or changes in costs can affect profit margins. Therefore, both buyers and sellers need to carefully consider market conditions, competition, and risk factors when entering into fixed rate agreements.
Overall, a fixed price is a steadfast and non-negotiable cost established for a specific product, service, or contract, providing stability and clarity for both parties involved.
Common Misspellings for FIXED PRICE
- fixd price
- dixed price
- cixed price
- vixed price
- gixed price
- tixed price
- rixed price
- fuxed price
- fjxed price
- fkxed price
- foxed price
- f9xed price
- f8xed price
- fized price
- ficed price
- fided price
- fised price
- fixwd price
- fixsd price
- fixdd price
Etymology of FIXED PRICE
The term "fixed price" combines two individual words, each with its own etymology:
1. Fixed: The word "fixed" comes from the Latin word "fixus", which means "fastened" or "made firm". It was eventually borrowed into Old French as "fixer" before being adopted into Middle English as "fixen".
2. Price: The word "price" originated from the Old French word "pris" meaning "value" or "worth". Old French borrowed it from the Latin word "pretium", which holds the same meanings.
When combined, "fixed price" refers to a set or unchanging value or cost for a particular item or service.
