Cost Plus Pricing

Understand Your Buyer > How To Convert > Cost Plus Pricing

What is it?

Cost Plus Pricing is all about having transparency when it comes to your margin and using this to secure buyers who are looking for a great deal but might be suspicious of how low a price can be.


Why does it work?

It works because it captures buyers who are looking for a great deal (such as in the example below of Cost Plus Drugs from Mark Cuban) Many industries can be plagued with high prices and bad deals – so to be a transparent and affordable alternative puts you in the realms of being a no brainer.


How can you use it?

You need to be aware that being the lowest price isn’t ALWAYS going to attract more buyers to you, but in industries where a degree of unfairness has crept in, you have an opportunity to seize some attention and some of the market.


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