Cost-Based Pricing - Business concept of the day

Cost-Based Pricing - Business concept of the day

Business Development

GlobalLinker Staff

GlobalLinker Staff

318 week ago — 1 min read

Definition: Cost-Based Pricing is a strategic form of pricing intended to cover the expenses of running your business. It is calculated by adding a profit percentage to the total cost of producing a product/service. 

Example: A product that costs $100 to make & the sellers desire to make 20% profit will give a selling price of $120.

Business Insight: It is one of the easiest ways to price your products & services. This pricing model allows you to exercise increased scrutiny over your costs. 

 

Comments (7)

Posted by

GlobalLinker Staff

We are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.