The time period denotes a situation in a negotiation or settlement the place the acknowledged price just isn’t topic to discount or negotiation. For instance, a vendor would possibly promote a product with the stipulation that the fee is fastened, indicating that potential patrons shouldn’t count on to cut price for a decrease quantity. This alerts a definitive asking worth.
This strategy supplies readability and certainty for each events concerned in a transaction. It streamlines the gross sales course of by eliminating protracted discussions in regards to the financial trade. Traditionally, this observe turned outstanding in contexts the place prices have been comparatively fastened or when a vendor sought to take care of a particular revenue margin.