factory price
B2Formal/Commercial
Definition
Meaning
The price charged by a manufacturer for a product when sold directly from the factory, before any additional markups from retailers or distributors.
A price point often used to suggest a deal that is close to the cost of production, emphasizing the absence of middlemen. Can also refer figuratively to any cost perceived as being at or near its minimum.
Linguistics
Semantic Notes
Typically functions as a compound noun. Often implies a discount or a wholesale context. Used more in marketing/sales than in general manufacturing discussions.
Dialectal Variation
British vs American Usage
Differences
No significant lexical difference. Slightly more common in UK advertising copy, especially for direct-to-consumer manufacturing (e.g., 'factory shop' culture). In the US, 'wholesale price' or 'direct price' are frequent alternatives.
Connotations
Both varieties strongly connote a good deal. In the UK, it may more specifically evoke physical factory outlet stores. In the US, it can sometimes carry a minor connotation of informal or bulk sales.
Frequency
Moderate and stable in both varieties within business/commerce contexts; low frequency in everyday conversation.
Vocabulary
Collocations
Grammar
Valency Patterns
[Company] sells [product] at factory price.[Product] is available at factory price [from/through source].We offer [product] for factory price.Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “Factory-to-you pricing”
- “Cut out the middleman, pay factory price.”
Usage
Context Usage
Business
Common in procurement, supply chain management, and B2B sales. Example: 'The contract stipulates payment at factory price plus shipping.'
Academic
Rare; might appear in economics papers on pricing models or industrial organisation.
Everyday
Used when discussing deals, shopping, or buying in bulk. Example: 'My uncle can get us furniture at factory price.'
Technical
Precise term in Incoterms (e.g., EXW - Ex Works, where the buyer pays the factory price and handles all other costs).
Examples
By Part of Speech
verb
British English
- The manufacturer agreed to factory-price the entire order for us.
American English
- Can you factory-price this component in the new quote?
adverb
British English
- We sourced the materials factory-price, saving thousands.
American English
- They sell factory-price direct to the public.
adjective
British English
- We visited a factory-price outlet in the Midlands.
American English
- They have a factory-price policy for bulk purchases.
Examples
By CEFR Level
- This bag is cheap. It is factory price.
- You can buy these shoes at factory price from their website.
- Negotiating a factory price is essential for maintaining our profit margins.
- The allure of factory pricing often obscures the hidden logistical costs borne by the buyer under EXW terms.
Learning
Memory Aids
Mnemonic
Imagine a FACTORY with a big price tag on its roof — the price of goods as they leave the building, before traveling to shops.
Conceptual Metaphor
PRICE IS A LOCATION (at the factory). SOURCE OF PRODUCT IS SOURCE OF VALUE (closer to the source = better value).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid calquing as 'фабричная цена' in formal contexts; it's understood but 'оптовая цена' (wholesale price) is more common. 'Цена от производителя' is a good marketing equivalent.
Common Mistakes
- Using it as an adjective without a hyphen (e.g., 'factory price goods' is acceptable, but 'factory-price goods' is more precise in formal writing). Confusing it with 'production cost', which is lower and not a selling price.
Practice
Quiz
In which context is 'factory price' LEAST likely to be used?
FAQ
Frequently Asked Questions
Very similar, but 'factory price' emphasizes the point of origin (the factory gate), while 'wholesale price' can be charged by any middleman in the distribution chain. Factory price is typically the first wholesale price.
Not necessarily. It typically refers to the base price of the goods. Taxes, shipping, and other fees are usually added separately. The terms of sale (like EXW) specify what is included.
Yes, primarily through factory outlet stores, direct-to-consumer brands, or by buying in very large quantities. However, advertised 'factory prices' to consumers are often still marked up slightly.
The most direct opposite is 'retail price' or 'recommended retail price (RRP/MSRP)', which is the price after all distributor and retailer markups have been added.