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Cost-Plus Pricing

Marketing & Web Cost-per-clickCounter advertising

Cost-Plus Pricing Occurs when a retailer adds its costs to desired profit margins to derive selling prices.
Credit Management Involves the policies and practices retailers follow in receiving payments from their customers.

 


cost-plus pricing
a simple method of pricing in which a specified amount or percentage, known as the standard mark-up, is added to the unit cost of production of an item to determine its selling price
cost/profit analysis ...

See Competition-Oriented Pricing; Cost-Plus Pricing; Target Return Pricing.

In the same way markup pricing arrives at price by adding a certain percentage to the product's cost, cost-plus pricing also adds to the cost by using a fixed monetary amount rather than percentage.

Average Cost Pricing - a pricing method in which a mark-up for profit is added to the average cost of production. See Cost-Plus Pricing.

See also: Offer, Product, Price, Cost, Pricing