cost plus pricing

Cards (4)

  • What does cost plus pricing seek to do?
    cover the costs and provide a good profit margin for the business
  • Why is cost plus the most logical approach to the business?
    Achieves the business objective of maximising profits
  • Give 2 benefits of cost plus pricing?
    Profitable for the business
    Easiest method of pricing to apply
  • What is a drawback of cost plus pricing ?
    Does not take into account the prices of competition