These stages include:ĭetermine the total cost of the product or service. ![]() The basic process involved in a cost-plus pricing strategy can be broken down into four stages. Let’s look closer at the process of a cost-plus pricing strategy. ![]() Also bear in mind that some overhead costs cannot be directly traced back to a specific source. All overheads involved in procuring materials, manufacturing, packaging, transporting and presenting the product to the customer must be considered to ensure a profitable markup is calculated. For example, most products have a material cost, as well as labour and transport costs. While cost-plus pricing is a pretty simple pricing strategy, there are usually a variety of factors involved in determining the cost of a product or service to a business. That additional percentage is the profit the company makes when it sells the product, thus the calculations involved in determining a cost-plus pricing strategy must be accurate. ![]() Sometimes referred to as markup pricing, it involves evaluating the cost of a product to the business, and then adding a percentage on top of that cost to create the price a customer can buy it for. Cost-plus pricing is a way for businesses to determine the price they charge for a product or service.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |