The term denotes a condition in a negotiation or agreement where the stated cost is not subject to reduction or negotiation. For example, a seller might advertise a product with the stipulation that the cost is fixed, indicating that potential buyers should not expect to bargain for a lower amount. This signals a definitive asking value.
This approach provides clarity and certainty for both parties involved in a transaction. It streamlines the sales process by eliminating protracted discussions about the monetary exchange. Historically, this practice became prominent in contexts where costs were relatively fixed or when a vendor sought to maintain a specific profit margin.
