factory price

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factory price

The company offers a special factory price for bulk orders.

Definition

Noun: - The price charged for a product when it is purchased directly at the point of manufacture, before any additional costs for shipping, retail markup, or distribution are added. This represents the cost from the producer.

Usage

This term is used in commerce, manufacturing, and retail contexts to specify the wholesale cost at the source. - It is often contrasted with "retail price" or "delivered price." - Commonly appears in business-to-business (B2B) transactions, quotations, and wholesale purchasing.

Examples
Advanced Usage
  • "At factory price": A phrase used to indicate the condition of a sale.
    • The machinery is sold at factory price, ex-works.
  • The concept is key in Incoterms (International Commercial Terms), such as EXW (Ex Works), where the buyer pays all transportation costs from the seller's premises.
Variants and Related Words
  • Ex-factory price: A synonym, often used interchangeably.
  • Wholesale price: A broader term that can include factory price but may also involve distributor markups.
  • FOB (Free On Board) price: A related trade term where the price includes delivery to and loading onto a carrier at a named port.
Synonyms
  • Ex-works price
  • Producer price
  • Manufacturing cost (though this more precisely refers to the cost of production, not necessarily the selling price)
Related Phrases
  • Direct from factory: Emphasizes the supply chain route, often associated with factory prices.
  • Price ex-works: The formal commercial term equivalent to factory price.
factory price

The company offers a special factory price for bulk orders.

Noun
  1. price charged for goods picked up at the factory