Average Sales Price (ASP)
The typical New MRR a new customer brings — and the clearest read on whether you're moving up-market.
What is it?
Average Sales Price is the average New MRR a new customer brings when they first sign up — total new MRR divided by the number of new customers in the period. It tells you which plans new customers are actually landing on, not the ones you hoped they would.
It is the companion to New MRR: new MRR can rise because you signed more customers or because each one is worth more, and ASP is what separates the two. A climbing ASP means you are winning bigger customers or successfully moving buyers up-market.
How to calculate?
Divide total New MRR by the number of new customers in the period. Three new customers at $49, $99 and $149 give an ASP of $99. Use the same normalised MRR as everywhere else, so annual signups count at their monthly value.
Watch ASP by cohort rather than in aggregate: a pricing change or a move up-market shows up as a step change in new cohorts long before it moves the blended average.