Cost-based Pricing


Definition: Cost-based Pricing is a method of determining the selling price of a product, wherein the price of a product is determined by adding a profit element to the cost of making the product.
It uses the manufacturing costs of the product as the basis to arrive at the selling price of the product by adding either a fixed monetary amount but usually a percentage (margin) to the base price.


More on pricing: By-Product Pricing, Decoy Effect, Demarketing, Dynamic Pricing, Loss Leader, more...


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