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

  • Wholesalers
    Wholesalers means middlemen who sell goods to retailers, to other wholesalers, and to ...
  • Adoption curve
    Adoption curve is the representation of the adoption process, consisting of five decision ...
  • Interactive advertising
    Interactive advertising is the includes all forms of online, wireless, and interactive ...
  • Service perishability
    Service perishability means that services cannot be stored for later sale or use ...
  • Observational research
    Observational research refers gathering primary data by observing relevant people, actions, ...