Episode #0004 – What Is Cost Plus Pricing?
In this episode of Pricing College – Aidan and Joanna discuss what cost plus pricing really is. Cost plus pricing is probably the most widely used and easy to understand pricing methodology.
TIME-STAMPED SHOW NOTES:
[00:45] Joanna explains what cost plus pricing is.
[01:25] It is a mark up or margin applied to costs – fixed and variable costs.
[01:40] If you buy an apple for a dollar – you sell it for two dollars.
[02:15] Cost plus works well in a simple business – like trading or simple retail.
[03:15] Cost plus really appeals to accountants.
[03:30] It was the first pricing method.
[04:25] Some professions are more focused on marketing and sales approaches.
LINKS MENTIONED IN TODAY’S EPISODE: