What is ASP (Average Selling Price)?

ASP measures a company's average selling price. The average revenue per sale or user per unit of time in software-as-a-service (SaaS) (monthly, annually, etc). Revenue divided by sales yields it. This indicator measures a company's price and sales performance. It can show price and sales trends and compare product or company performance. It can also inform pricing and sales tactics and benchmark against industry averages.