What Is Cost Plus Pricing? How Do You Use It In Sales?
Salesforce
FEBRUARY 7, 2024
Cost plus pricing uses a simple formula: the cost of manufacturing, labor, and overhead ( cost of goods sold or COGS) multiplied by one plus your desired profit or markup percentage (in decimal format) to get your selling price. 50 x (1 + 0.40) = $70. They can make up for small profit margins by selling in bulk.
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