Spot pricing is the current pricing of a certain product in which it’s purchased, sold and delivered. It’s in the “now” based on the MSRP of the time. It’s pretty straightforward and consistent that its one of the most preferred pricing style there is. How can you tell where it has spot pricing? Simple, spot pricing is fixed based on the market price of the current. You can’t haggle and its not priced in the future.
Although the price will change over time, it won’t be because you haggled your way of it. It’s not it. There are many reasons why spot cash prices will change but it won’t be you (unless you’re the president or the senator).
It’s for trading: If you happen to trade on stocks then you know that pricing is everything because that is what you’re going to base the product that you wish to trade in. The price is the determining factor whether or not the product, or the manufacturer is doing good or doing bad in the stock market. Aside from that, it’s also one of the means for companies to be able to see their profit margin. How else would you know your margins if you don’t have fixed pricing? Makes sense right?
It’s for consistency: Having that consistent pricing is very important for pricing. If you would haggle your way all the time, there will be no consistent price. There will be chaos because you try to determine a price based on its value to you and you try to make it work. Keep in mind that sellers have capitals in their goods and if you haggle, there’s no guarantee that other people won’t haggle as well and demand a lower offer. There’s no order and most likely stores will lose money. Although undeniably that haggling is a good skill, it’s not all entirely good. The fact is haggling is good in some places, but not all the time. There’s a good place for it.
There’s a good reason why spot pricing is practiced all the time. That is because it represents consistency in terms of trading value for goods. More importantly, it gives an order on the pricing and profit. Although there are many reasons why prices will change over time, spot pricing still is consistent in the sense that you can’t haggle for a certain price. And the reason for the price change won’t be you, but certain factors in the market like an increase of supply and demand and many many more can change it. If You wish to know more about spot pricing be sure to visit https://education.microsoft.com/Story/Lesson?token=h40VF.