COST-PLUS PRICING

The simplest pricing method wherein a standard mark-up is added to

the cost of the product.
Unit Cost : Total
• Mark-up ( Example: We want 20% Mark-up) expenditure incurred in
• Selling Price = Unit cost / (1- 20% mark-up) producing a product
= Php 30.00 / (1 - .20) Mark-Up : The amount
= (30/80)*100 added to the unit cost to
= Php 37.50 gain profit

Selling Price : The

resulting price after
(Unit Cost + Mark-up) to
which the product is sold in
the market.
VALUE-BASED PRICING
• Also known as buyers-based approach, it considers consumers’
perceived value on the product.

• The price is considered before designing the product or planning

for its marketing program.

• Pricing begins with analyzing consumers’ needs and

value perceptions and price is set to match their perceived
value.