Explore the key advantages of cost-plus pricing for businesses. This article outlines why this pricing method is considered simple, flexible, and effective in ensuring profitability, as well as its usefulness for businesses with large product lines.
Discover the limitations of cost-plus pricing and its potential impact on your business. Learn about the key disadvantages, including a lack of consideration for competitive pricing, customer value, and profit maximization, among others.
The Marketing Study Guide has developed an easy to use Excel template for cost-plus pricing, which is free to download and does not require any sign-up.
This post builds upon the price calculation information provided in Cost-Plus Pricing Formula with Examples, and provides even more calculation examples.
In this article we look at the formula for cost-plus pricing and provide example calculations, plus we provide a free cost-plus pricing Excel template for download.
In this detailed article, internal and external reference prices are discussed and their implications for marketers.
This article discusses a model that demonstrates the role of reference prices and how consumers use this information to inform and guide their purchase decisions.
There is a direct relationship between these concepts, as internal reference prices are formed through continual exposure to external reference prices.
Reference prices are an important concept in marketing. Reference prices are the expected and acceptable price range that a consumer will pay for a particular product and/or brand. If a product is priced well above or well below the expected price range, then the consumer is unlikely to see value in the product and is unlikely to purchase
Internal reference prices are a handy heuristics tool for consumers to allow them to make fast decisions, whereas external reference prices are more important in high involvement purchases.