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What is cost plus pricing? #pricingstrategy #pricingstrategies #productpricing #businessgrowth
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Business School on Instagram: "Cost-Plus Pricing is a simple and widely used pricing strategy where a business sets the selling price of a product by adding a fixed percentage (or markup) to the total cost of producing the product. Formula: Selling Price = Cost Price + Markup Where: Cost Price includes direct costs (materials, labor) and possibly overheads Markup is a fixed percentage profit added on top of the cost Example: Let’s say it costs $100 to make a product. If the business wants a 25%
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