Price upon Agreement

Price Upon Agreement: Understanding the Pros and Cons

When it comes to buying goods or services, the price is usually one of the most important factors to consider. However, in some cases, the cost may not be disclosed upfront and instead, it is left upon negotiation between the buyer and the seller. This is commonly referred to as “Price Upon Agreement” (PUA). In this article, we will take a closer look at this pricing model and discuss its advantages and disadvantages.

What is Price Upon Agreement?

Price Upon Agreement (PUA) is a pricing model where the buyer and seller agree on a price for goods or services through negotiation. In other words, the price is not fixed and may differ from one customer to another, depending on various factors such as the quantity of the product purchased, the type of service required, the location of the buyer, among others. In this model, the seller usually provides a price range, leaving room for negotiation between the parties involved.

Advantages of Price Upon Agreement

1. Flexibility: PUA provides flexibility to both the buyer and seller, as they can negotiate a price that is more suitable for their specific needs. This means that the buyer can save money by negotiating a lower price, while the seller can earn more by getting a higher price than the initial offer.

2. Competitive Advantage: PUA can give the sellers a competitive advantage over other businesses that offer fixed prices. By being willing to negotiate, the seller stands out and shows a willingness to work with the customer to find a price that works for both parties.

3. Personalization: The PUA pricing model can also be beneficial in customized projects or services where the needs of the buyer are unique. This allows the seller to cater to the specific needs of the customer, making the service or product more valuable and personalized.

Disadvantages of Price Upon Agreement

1. Uncertainty: PUA can be risky for the buyer, as they are unsure of the final price until the negotiation is completed. This can create uncertainty and make it difficult for the buyer to budget for the purchase.

2. Time-Consuming: Negotiating a price can be time-consuming and may require several rounds of negotiation before the parties agree on the final price. This can be frustrating for both buyers and sellers who are looking to complete the transaction quickly.

3. Transparency: PUA can also raise concerns about transparency. Some buyers may feel that the seller is not disclosing the true cost of the product or service, which can lead to distrust and damage the relationship between the two parties.


Price Upon Agreement can be a useful pricing model for both buyers and sellers in many situations. While it offers flexibility, personalization, and competitive advantage, it also presents challenges such as uncertainty, time consumption, and transparency. Therefore, it is essential to consider the pros and cons of PUA carefully before using it as a pricing model. As a professional, always keep in mind that using the right keywords can help people find your article quickly and contribute to its success.