Net is a resulting quantity.
Net is something clear, clean or well defined . By extension, the adjective is used to name a resulting quantity . In this way we can talk about net weight , net content , net worth , etc.
Net weight is the actual weight of any product or merchandise. This means that it is the gross (total) weight minus the weight of the container and discounting other variables that may affect the weighing, such as humidity. For example: “Although this jar is very large, it only contains a net weight of 200 grams of green olives,” “The net weight of the apples is three kilos, although if you add the wooden crate you will have to carry a little more than four kilos.”
Net in the economy
In the field of economics , net worth is the difference that exists between the values that belong to a person or organization and its debts or obligations. If a company has $100,000 in cash but must face a debt of $60,000, its net worth is $40,000. In a similar sense, if a person has $2,000 saved and must pay obligations of $100, his net worth is $1,900.
Net income is what a person or company actually receives, after applying the corresponding discounts. A worker who agrees with his employer on a gross salary of $500 knows that he will receive a net income lower than that figure, since discounts must be made to cover social work, retirement, etc.
For certain complex sales processes, especially between companies, a series of discounts is usually applied that make the calculation of the net (or final) price of a commercial operation more complex, whose economic viability can only be determined if said value is obtained.
In short, the net price is the one that arises from subtracting all discounts (both on invoice and outside), as well as contributions , from the tariff price . To better understand this procedure, let's look at the four concepts just mentioned in more detail:
- Tariff price : the price that is initially set for any acquisition of a service or product.
- Discounts : they reduce the price by subtracting a fixed amount (such as a specific amount for each unit purchased) or a percentage. It is worth mentioning that discounts do not always have to be recorded on the invoice. There are, in turn, several types, such as rebates (they apply to a certain purchase volume), logistical ones, promotional ones and those that are granted for prompt payment.
- Invoice price : this is the price reflected on the invoice, and is generally the result of the tariff price minus all the discounts also specified therein. The invoice is a document created with the purpose of collecting the fundamental data of a commercial transaction (be it the purchase of a product or the payment for a service), such as the name and quantity of each item, data about the buyer and the seller, and tax rate, among others.
- Contribution : it is the amount that the seller pays to its buyer to close a transaction, and is negotiated outside of the invoice.
The net price is obtained after applying a discount.
A Portuguese footballer
Luís Carlos Novo Neto is a footballer of Portuguese origin, born in 1988, who usually plays in the central defender position.
He discovered his vocation at an early age: at the age of ten he had already joined a local club and since then he has not stopped dedicating himself to his profession. In 2012 he participated in the 2014 FIFA World Cup qualifier, against Russia and Northern Ireland , and was later part of the World Cup squad.