Cost Plus Pricing

Posted by ibrahim

Cost Plus Pricing

Question :

What is cost plus pricing?

Answers :

1.A PRICE that is COST plus a certain amount.

2.When the retail price is set at a specific percentage above wholesale cost. Many companies use cost plus pricing for ease of financial forecasting.

If everything you sell is prices at 10% above what you paid for it, you will know that your profit margin will always be 10% on everything.