# Average Price Per Unit

As a business owner or marketer, understanding the average price per unit is crucial for making informed decisions. It refers to the cost of each item or unit sold by a company. Here's everything you need to know about average price per unit.

## What is Average Price Per Unit?

Average price per unit is the average selling price of each unit of a product. It is calculated by dividing the total revenue earned from selling the product by the number of units sold.

## What is Unit Price?

Unit price is the cost incurred in producing each item or unit of a product. It includes all expenses such as production costs, marketing expenses, and overheads.

## How is Average Price Per Unit Calculated?

To calculate average price per unit, you need to divide the total revenue earned from selling a product by the total number of units sold during a particular period. For example, if a company earns \$1000 from selling 100 units of a product in a month, the average price per unit would be \$10.

## What is Cost per Acquisition (CPA)?

Cost per acquisition (CPA) refers to the cost incurred in acquiring a new customer through advertising or marketing campaigns. It is calculated by dividing the total cost of advertising by the number of new customers acquired.

## What is Cost per Click (CPC)?

Cost per click (CPC) refers to the cost incurred for each click on an ad placed on search engines or social media platforms. It is calculated by dividing the total cost of advertising by the number of clicks received.

## What is Cost per Mille (CPM)?

Cost per mille (CPM) refers to the cost incurred for every thousand impressions generated by an ad. It is calculated by dividing the total cost of advertising by the number of impressions generated and then multiplying it by 1000.

Understanding these metrics can help businesses make better decisions about pricing strategies, advertising budgets, and marketing campaigns.

### References:

• Kotler, P., & Armstrong, G. (2019). Principles of marketing. Pearson.
• Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson.
• Czinkota, M. R., & Kotabe, M. (2018). Global marketing management. Routledge.
• Schindler, R. M., & Koo, C. (2018). Essentials of marketing research: Putting research into practice. Sage Publications.
• Kannan, P. K., & Li, H. (2017). Digital marketing: A framework, review and research agenda. International Journal of Research in Marketing, 34(1), 22-45.