What is cost-plus pricing?

Cost-plus pricing is a pricing method where the price of a product or service is determined as the sum of the cost and a fixed markup (percentage or absolute amount).

Example: if the production cost of a product is 1000 rubles, and the markup is set at 20%, then the selling price will be 1200 rubles.

This approach is simple and ensures coverage of costs and profit, but it does not consider demand, competition, or customer perception of value.