Cost-plus Pricing

Knowledge Center




Summary, forum, best practices, expert tips and information sources.

11 items • 13.680 visits

Translate


Summary

What is Cost-plus Pricing? Meaning.

Cost-plus Pricing is an accountants approach to Price Setting that adds a standard mark-up to the total cost of the product. For this reason it is also called Mark-up Pricing. The mark-up could be a fixed monetary amount, but more frequently is a fixed percentage, a certain profit margin. This type of pricing can be frequently found in manufacturing and retailing environments and is sometimes also necessary to win government contracts. The method is internally orientated.


One benefit of this approach is its simplicity. Also it is fact-based, can be easily calculated and administered. A disadvantage is the risk of underestimating customer demand and the value as perceived by the customer as important mechanisms. This may result in overpricing and underpricing. Furthermore the role of competitors is ignored. Historical accounting costs are used rather than replacement value.


Special Interest Group

Cost-plus Pricing Special Interest Group.



Special Interest Group (22 members)

Forum

Forum about Cost-plus Pricing. Below you can ask a question about this topic, share your experiences, report a new development, or explain something.


Start a new topic about Cost-plus Pricing

 

🔥 NEW Disadvantages of Cost-plus Pricing Method
Cost-plus pricing is an easy method for applying a unit margin on a product. This makes it easy to calculate profit based on sales. But it does not take into account VOLUME. Full cost plus pricing ea...
5
 
1 comments

Best Practices

The best, top-rated topics about Cost-plus Pricing. Here you will find the most valuable ideas and practical suggestions.


Expert Tips

Advanced insights about Cost-plus Pricing. Here you will find professional advices by experts.


Information Sources

Various sources of information regarding Cost-plus Pricing. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Understanding Costs In-depth

Cost Drivers, Cost Behavior, Direct Costs, Indirect Costs, Controllable Costs, Uncontrollable Costs
This presentation provides a better understanding about cost, cost types, costs drivers and other cost dynamics, and inc...

Overview of Pricing and Pricing Strategies

Pricing
This presentation contains an overview of various pricing strategies, including for example pricing based on competition...

Research Links

Jump to further research sources regarding Cost-plus Pricing.


News

Videos

Presentations

 

Books

Academic

More


Compare with: Standard Cost Pricing  |  Marginal Cost Pricing  |  Target Pricing  |  Penetration Pricing  |  Price Skimming  |  Perceived Value Pricing  |  Psychological Pricing  |  Promotional Pricing  |  Competitive Pricing  |  Discount Pricing

Special Interest Group

Do you know a lot about Cost-plus Pricing? Become our SIG Leader and gain worldwide recognition as an expert.

 

Return to Management Hub: Finance & Investing  |  Marketing & Sales


More on Management  |  Return to Management Dictionary

 

This ends our Cost-plus Pricing summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2023 12manage - The Executive Fast Track. V16.1 - Last updated: 6-6-2023. All names ™ of their owners.