What it means
Electrical manufacturers publish list prices for their products in price sheets or price books. In practice, few contractors pay list price. Distributors buy and sell at discounts from list, often expressed as a multiplier: the list price multiplied by a factor gives the net price a customer actually pays.
Because the same list price can lead to different net prices for different customers, list price is mainly a common reference point. When manufacturers raise prices, they typically issue new price sheets with updated list prices, which then flow through to net prices.
An example (illustrative numbers): a breaker has a list price of $100. With a multiplier of 0.40, the net price is $40.
Why it matters
- Comparing quotes. Contractors should compare net prices, not list prices.
- Tracking price changes. New list prices are usually the first sign of a manufacturer price increase.