Definition

Cost-plus pricing

Adding a standard markup to the cost of the product is called is cost-plus pricing (or markup pricing).  Construction companies, for example, submit job bids by estimation gather total project cost and adding a standard markup for profit. Lawyers, accountants, and other professionals typically price by adding a standard markup to their costs. Some sellers tell their customers they will charge cost plus a specified markup; for example, aerospace companies often price this way to the government.

Share it:  Cite

More from this Section

  • Salesperson
    Salesperson is an individual representing a company to customers by performing one of ...
  • Influencers
    Influencers refer to the people in an organization’s buying center who affect the buying ...
  • Direct-mail marketing
    Direct-mail marketing is a process of direct marketing by sending an offer, announcement, ...
  • New task
    New task means a business buying situation in which the buyer purchase a product or service ...
  • Consumer-to-consumer (C-to-C) online marketing
    Consumer-to-consumer (C-to-C) online marketing refers to online exchanges of goods and ...