The 6 Disadvantages of Cost-Plus Pricing

Posted by Moira McCormick on July 20, 2023

Understanding Cost-Plus Pricing

Cost-plus pricing has a longstanding history as a standard approach for setting prices for many B2B and B2C businesses. It's a model that prizes simplicity: tally up all the costs involved in the production or manufacturing of a product, set a margin that reflects your desired profit, and then add this to your total cost. This yields your selling price.

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Topics: Cost-Plus Pricing

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