Cost-plus pricing - Finance Records
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Topic: Cost-plus pricing



  
 Cost-plus pricing - Wikipedia, the free encyclopedia
Cost-plus pricing is a pricing method commonly used by firms.
Another variant of cost plus pricing is activity based pricing.
Price skimming and penetration pricing are also types of product life cycle pricing but they are demand based pricing methods rather cost based.
http://en.wikipedia.org/wiki/Cost-plus_pricing   (411 words)

  
 Pricing Cost Based
cost plus a constant margin), the most effective profit-maximizers set prices "to the market", with cost (plus minimum profit) merely serving as a minimum pricing threshold.
If competitors hold their product prices - either because they do not face the same product cost increases or because they are willing to accept lower profitability levels - then the firm must either absorb the cost increase (and lower profits), or give up some sales at increased price levels.
If market-based prices are below the price floor, a firm may price at the floor (and suffer the sales volume consequences) or may abandon the market (since the product loses money at the market price).
http://www.msb.edu/faculty/homak/HomaHelpSite/WebHelp/Pricing_Cost_Based.htm   (494 words)

  
 Model 3: Cost-Plus Pricing
A method of determining the price of a good by adding a percentage markup to average variable cost
http://www.csuchico.edu/~shockley/syllabi/monopolistic/tsld029.htm   (31 words)

  
 Price-at-Risk: A methodology for pricing utility computing services
Variable costs can be one-time costs (such as customer set-up costs) or reoccurring costs (such as customer service costs, costs of failures due to high utilization, and penalties due to infringement of Service Level Agreements).
Therefore, the cost structure is tied to the revenue.
Within the cost structure of utility-computing service offerings, sunk costs are much larger than the variable costs.
http://www.research.ibm.com/journal/sj/431/paleologo.html   (5337 words)

  
 Cost-Plus Pricing
Government pricing and government contracts, including the payment of subsidies of any kind, always are on a "cost-plus" basis because in those cases the efficient market method of pricing has been prohibited.
Cost, of course, influences the supply side of the market and thus the price; but costs incurred do not determine price.
And this determination of prices in the open competitive market affords the current running record of costs and returns that a businessman needs in order to calculate profit or loss and judge whether or not to continue a particular business activity.
http://www.libertyhaven.com/theoreticalorphilosophicalissues/libertarianism/costpluspricing.html   (1124 words)

  
 Cost-plus pricing with elasticity considerations - Wikipedia, the free encyclopedia
One of the most common pricing methods used by firms is cost-plus pricing.
When business people choose the markup that they apply to costs when doing cost-plus pricing, they should be, and often are, considering the price elasticity of demand, whether consciously or not.
See also : pricing, cost-plus pricing, price elasticity of demand, markup, production, costs, and pricing, marketing, microeconomics
http://en.wikipedia.org/wiki/Cost-plus_pricing_with_elasticity_considerations   (350 words)

  
 Cost Plus Calculator
It is to determine various aspects of wholetail cost plus pricing and values.
Wholesale cost price is the cost to buy the product by you, including your overhead cost percentage.
The default method is dollar value markup from wholesale; the default required entries are the wholesale cost price and dollar markup value amount.
http://www.csgnetwork.com/costpluscalc.html   (277 words)

  
 Cost Plus Pricing and your Business
Cost Plus Pricing has become the standard in many industries and a requirement for bidding on some public and private sector business and is often requested by customers.
Chances are your organization requested cost plus pricing to keep costs at their lowest, yet there may still be opportunities for "win-wins" with your supplier.
As a supplier, Acorn Systems solutions can help you analyze your costs and the most cost efficient way for you to service cost plus business and meet the terms and conditions of the contract.
http://www.acornsys.com/solutions/solutionlines/costplus.html   (256 words)

  
 Cost to Serve Pricing Software Increases Customer Profitability
For a manufacturer this means that you can trace not only the cost of producing a particular item as an aide to SKU rationalization, but also the cost as this item is distributed to your downstream trading partners.
It also means you can trace not only the cost of providing a particular service as an aide to rationalize your service offering, but also the price you might consider for outsourcing your services.
For a service provider, this means that you can identify which customers are more profitable and have enabled you to reduce total service costs, versus those that have increased service costs through high touch service models, late payments and peak capacity usage.
http://www.acornsys.com/solutions/solutionlines/costtoserve.html   (727 words)

  
 Tecsave supermarket chain
Cost-plus pricing means taking into account the cost of making the product.
It is based on the direct costs of producing the goods and a percentage of the indirect costs such as overheads-Rent, heating and so on.
In competition-based pricing the business sets its selling price at a level similar to that of its competitors, even if this means a smaller profit margin just so they can sell the products.
http://www.coursework.info/i/24779.html   (352 words)

  
 Local Exchange Carrier Mutual Aid Agreement
Cost Plus Pricing — Cost Plus Pricing is a methodology which itemizes the costs to provide a service and lists those costs separately in the quoted price.
Unit Pricing will likely be preferred by the Requester in an Emergency due to the relative simplicity of invoicing and bill verification as opposed to Cost Plus Pricing.
Cost Plus Pricing will likely be preferred by the Provider in an Emergency since many of the cost factors may not be known at the time the price of services to be rendered to the Requester is being negotiated.
http://www.ncs.gov/ncc/mutual/mutual4.html   (658 words)

  
 The New York Enterprise Report
If you choose to price your products using the cost-plus method or any other method that disregards the customer in the pricing process, you are voluntarily disregarding the most crucial piece of the puzzle, and such oversights rarely have good results.
Cost-plus pricing may also be appropriate in cases where large numbers of individual product prices need to be constantly updated (for example, in a supermarket).
This method of pricing is customer-centric, i.e., the price is based on the value generated for the customer rather than on the costs incurred by the supplier
http://www.nyreport.com/index.cfm?fuseaction=Feature.showFeature&FeatureID=142   (1684 words)

  
 PLP News Press Releases 20 January 2004
Performance-based pricing is a customer-focused alternative to cost-plus models, where price is based on the cost of development and manufacturing plus desired profit.
While cost-plus pricing is easy to calculate and administer, it tends to ignore the roles of consumers and competitors.
Unlike cost-plus pricing models, PLP’s approach bases the value of each printer interface on printer performance, with the addition of a depreciation schedule for legacy devices.
http://www.plp.com/www/news/press_releases/20040120.html   (323 words)

  
 Cost-Plus Pricing Fails Suppliers and Their Customers
Even without that particular flaw, for cost-plus pricing to work for the customer, it requires either a) unlimited trust in the honesty of the supplier (the SEC may be able to suggest where not to sign on to that one), or b) comprehensive audit processes.
In many ways, cost-plus pricing should be the last thing a customer wants if he or she would like their supplier to help them control costs.
It could be argued that under some computerized pricing systems, the benefits of one-number-default pricing outweigh the costs of having to uniquely price every item while trying to strike the necessary balance between being a) competitive and b) not too generous.
http://www.medicaldistribution.com/rep/Rep_1999_August/Rep_816009470621.htm   (1316 words)

  
 pricing your product or service to make profit
The intention is that the guide price will be equal to, or more than, your cost plus calculated price (otherwise you may not have a viable business).
Another method of setting the price is known as market pricing and is based on the results of your market research, which should tell you how much your potential customers are willing to pay for the product, or service.
By knowing what it costs you per hour, or product, you can calculate a mark-up to add to that cost in order to generate a set level of profit per hour, or product.
http://www.fastlinksolutions.co.uk/pricingy.htm   (1414 words)

  
 American Printer: What's your pricing philosophy?
While cost-plus pricing may not be a good concept, it admittedly may serve as the best framework for pricing given the limitations of available, accurate information.
Let's look at market-based pricing, a notion that presumes that a company must be competitive and that its costs, operations and standards must reflect the demands of the marketplace.
This is especially true regarding companies for which an estimator calculates both estimated costs and price.
http://www.findarticles.com/p/articles/mi_m3254/is_8_232/ai_n6077767   (767 words)

  
 Cost Plus Pricing
Cost plus pricing begins with some form of product or service cost and adds on an appropriate mark-up
Full costs $720.00 + 12% markup = $806
Most companies establish prices using either a market-based or cost-based approach
http://www.atkinson.yorku.ca/~garys/3510/ch12/tsld010.htm   (37 words)

  
 Biz Help 24 - Marketing & Sales - Pricing Influences
This contribution would then be added to the direct costs to give you a total selling price for each product as in the example in the first paragraph of this section.
Say that Product A has a direct cost of £80 and you want to make a contribution of, say, £20 towards indirect costs and profit: this makes a total selling price of £100.
The number of pricing strategies that are talked about today is confusing and consequently many people adopt their own method.
http://www.bizhelp24.com/marketing/cost_based_pricing_2.shtml   (838 words)

  
 WHAT'S YOUR PRICING IQ?
Cost-plus pricing is bad for just about anything else primarily because it lacks variety/flexibility due to the "two finger" pricing rule: one finger for 25% and one finger for 20%.
The pricing mode, in a step-variable or variable-cost firm, is to maximize gross margin percent as much as possible.
Operating expenses represent the cost to service, and services are step-variable costs.
http://ewweb.com/mag/electric_whats_pricing_iq/index.html   (2676 words)

  
 Optimize Magazine > Financial Management > Adaptive Pricing Comes Into Focus > June 2003
Adaptive pricing is a natural extension of demand-driven pricing, but offers an unprecedented degree of automation that relieves the operational burden—and lowers the cost.
Indexed pricing works best for commodity assets that have plausible indices, such as applications development or maintenance.
Gaining considerable attention is utility or usage-based pricing that ties the prices directly to your actual consumption.
http://www.optimizemag.com/issue/020/financial.htm   (1230 words)

  
 definiiton of cost plus
Cost-plus pricing starts with the cost, and adds a percentage you specify to determine the suggested selling price.
However, if you want your cost plus customer to pay list price on net price items, specify N in the Cost Plus if Net box.
If an item costs $10.00, for example, and the percentage is 10 percent, the suggested selling price is $11.00.
http://www.ddms.com/lgs/inventory/def_costplus.htm   (126 words)

  
 Marketing - pricing - full cost plus pricing
The main disadvantages of cost plus pricing are often considered to be:
Full cost plus pricing seeks to set a price that takes into account all relevant costs of production.  This could be calculated as follows:
The advantages of using cost plus pricing are:
http://www.tutor2u.net/business/marketing/pricing_costplus.asp   (472 words)

  
 bp_horngren_cost_11Pricing Decisions and Cost ManagementMultiple Choice
When the firm uses the target-costing approach to pricing, the target cost per unit is the difference between the per unit target price and the per unit target
The costs that should be considered relevant in a company's target-cost calculation are
The following cost information is available with respect to Zite on a per unit basis: direct materials, $5; direct labor, $4; variable manufacturing overhead, $2; variable marketing, $2; fixed manufacturing, $4; fixed marketing $2.
http://wps.prenhall.com/bp_horngren_cost_11/0,,139064-,00.utf8.html   (297 words)

  
 FUELMAN of DFW
Cost-plus based pricing-Many FUELMAN of DFW programs are based on this unique pricing option that allows you to pay the same fixed margin over wholesale rack prices for fuel.
Pricing Options-Our pricing options are designed to help you save money and manage your fleet budget more efficiently.
Customized reports track total maintenance costs by vehicle and provide you with the information that you need to maximize your efficiency and get your company the best economic return on its fleet investment.
http://www.fuelmandfw.com/cserve.asp   (486 words)

  
 * Cost-Plus Pricing - (Marketing & Web): Definition
Cost-Plus Pricing - a simple method of pricing in which a specified amount or percentage, known as the standard mark-up, is added to the unit cost of production of an item to determine its selling price...
The average cost of a product of service plus a profit margin.
competitor than by considerations of consumer demand and cost of production.
http://www.mimihu.com/marketingweb/costplus_pricing.html   (84 words)

  
 The Hindu Business Line : Tariff panel to submit report on natural gas prices in Nov
Based on the report of the Shankar Committee, the Government had dismantled the cost-plus pricing and decided to align the consumer price of gas to international prices.
Reverting to cost-plus pricing method may not be good news for ONGC, which is being paid only about one-sixth the market price.
While the oil majors have been seeking market-related price for the gas, the power and fertiliser ministries have opposed the move, as it would mean an increase in input costs for power and fertiliser units, which supply their products at fixed price.
http://www.thehindubusinessline.com/2005/09/05/stories/2005090502300300.htm   (611 words)

  
 Pricing, Cost Plus Pricing, Cost Plus Pricing company.
Pricing, Cost Plus Pricing, Cost Plus Pricing company.
If you are a service provider dealing in Cost Plus Pricing, please fill up the form to include your name in our database.
It is our commitment to provide valuable information and resources on Cost Plus Pricing.
http://www.ishaglobal.com/info/Cost_Plus_Pricing.htm   (367 words)

  
 Mysterious Art of Electric Sign Pricing
That is, consider the cost of the machine the amount you could get for the machine if you sold it or how much it would cost you to buy.
For manufacturing, equipment costs are usually built into the Overhead.
The most common reason people give for not including equipment costs are that the machines are fully paid for.
http://signpub.com/estimating/articles/2004-07-28-ElectricSignPricing.php3   (1335 words)

  
 Menu Based Pricing Software - Acorn Systems
Menu-based pricing rewards your best customers, through pricing that reflects their true cost to serve and rewards customers who do not use costly customer service, delivery or other options that add cost and remove profits from their goods and services.
With menu-based pricing, made possible by Acorn Systems Profit Analyzer™ and Cost Analyzer™ solutions, companies can increase their control of profits from individual goods and services.
Menu-based Pricing enables organizations to accurately price goods and services at a Net Profit.
http://www.acornsys.com/solutions/solutionlines/menubasedpricing.html   (111 words)

  
 ::: Welcome to Robinson :::
Cost-plus pricing means that firms fix prices on the basis of some measure of unit costs, rather than as a reaction to demand fluctuations.
It discusses how price decisions are actually taken; it deals with the process of price setting; it might also make explicit the information basis upon which the pricing decisions are taken.
A theory of prices is a theory that ascertains the price of a product relative to other prices.
http://aix1.uottawa.ca/~robinson/english/ch/ch_5.htm   (248 words)

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