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Benjamin Day Smith

composer, musician, data scientist

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The ASP's Sting: What Average Sale Price Won't Tell You

The ASP is a very common performance metric for many types of businesses, where the prevailing notion is that higher ASP is better. If the unit economics stay the same this is born out: selling 10 cars at $20K is better than selling 10 cars at $15K, for the revenue of the business. Finding ways to drive ASP higher and higher seems like an obvious conclusion, if you want to increase your overall revenue.

But is it actually “average”?

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tags: Average, ASP, Mean, Median, Normal
Wednesday 01.12.22
Posted by Ben Smith