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Cost-plus pricingWhat it means for you.

Setting a price by adding a fixed margin to the cost of making or delivering the product.

Growth Score · Monetization

Definition

What it means

Cost-plus is simple and guarantees a margin on each unit. It ignores what customers are willing to pay, so it can leave money on the table or overprice.

It works best as a floor rather than as the final answer.

In Growth Score

Part of your score

FAQ

Quick answers

What is Cost-plus pricing?

Setting a price by adding a fixed margin to the cost of making or delivering the product.

Where does it sit in Growth Score?

It belongs to the Monetization pillar, one of the 12 pillars your score is built from.

What should I read next?

Start with Value-based pricing and Gross margin, then browse the other terms in Monetization.

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Nearby in the A to Z

How does your site score?

Growth Score reads your site and scores its Monetization pillar against sites like yours.

Your Growth Score is 100

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