Cost +

Cost-plus pricing

also known as "cost-plus," is a strategy for determining the price of a product or service by adding a profit margin to the total production cost. requirements.

In this approach, the cost of materials, labor, and overhead expenses incurred in producing the product or providing the service is calculated, and then a predetermined profit margin is added to cover the required return on investment for the company.

Cost-plus pricing is often used in projects where it's difficult to accurately predict costs or where flexibility is required due to changes in market conditions or project.

While it provides transparency regarding costs and ensures that the company's expenses are covered, the profit margin can vary from one project to another depending on its size. Cost-plus pricing can be a valuable tool for companies seeking to ensure profitability while remaining competitive in their respective markets.