OnDemand WTP Pricing Research

Cost-plus Pricing: The foundation of a three-part pricing strategy | Cabbige

Last week, we took a look at the most-oft used pricing strategy – competitive pricing – the act of glancing at your neighbors’ tables at the farmers’ market and pegging your price to something comparable. As we discussed, this strategy leaves much to be desired, mainly because you’re using someone else’s factors to influence one of the biggest drivers of your business.

This week, we’re going to get a little more intimate, by looking inward and taking a good, hard look at our own business with a cost-plus pricing strategy.

Cost-plus is a popular pricing strategy for a couple of reasons: it’s a low-risk pricing strategy and can be factored pretty easily. It does however, as the name suggests, require that you know the price of your individual crops. If you don’t, make it an immediate priority to figure out the cost of production of your five highest volume crops.

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Cost-plus Pricing: The foundation of a three-part pricing strategy.

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