Definition
Average sales price is the average booked value per closed-won deal over a period (often ACV for SaaS).
Formula
ASP = booked value / number of closed-won deals
Example
If $1.5M is booked across 30 deals, ASP is $50k.
How to use it
- Use ASP with win rate to understand whether growth comes from bigger deals or more deals.
- Segment ASP by plan and customer size to avoid mix-shift confusion.
- Track ASP with sales cycle length to see trade-offs in deal size.
Common mistakes
- Mixing contract terms (monthly vs annual) without normalization.
- Comparing ASP across segments with different pricing models.
Measured as
ASP = booked value / number of closed-won deals
Misused when
- Mixing contract terms (monthly vs annual) without normalization.
- Comparing ASP across segments with different pricing models.
Operator takeaway
- Use ASP with win rate to understand whether growth comes from bigger deals or more deals.
- Segment ASP by plan and customer size to avoid mix-shift confusion.
- Track ASP with sales cycle length to see trade-offs in deal size.
- Keep Average Sales Price (ASP) consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
- Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.
Next decision
- Read Sales ops metrics hub: quota, pipeline, win rate, and capacity planning if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
- Decide whether Average Sales Price (ASP) is a growth, retention, or efficiency signal before you set targets around it.
Where to use this on MetricKit
Guides
- Sales ops metrics hub: quota, pipeline, win rate, and capacity planning: A practical hub for sales ops planning: quota attainment, pipeline coverage, required pipeline, sales capacity with ramp, and OTE math.