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Cost-based pricing is a pricing strategy where the price of a product is determined primarily by the cost of producing, distributing, and selling it, with a desired profit margin added. This approach involves calculating the total expenses involved in manufacturing the product and setting a selling price that ensures these costs are covered while generating a targeted profit. Cost-based pricing provides a foundation for pricing decisions but should also consider market factors and customer demand for optimal pricing strategies.
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IllustratingCost-BasedPricingStrategiesfor Manufacturing Industry withReal-WorldExamples Cost-based pricing is a pricing strategy where the price of a product is determined primarily by the cost of producing, distributing, and selling it,withadesired profitmarginadded. Thisapproachinvolves calculating the total expensesinvolved in manufacturing the product and setting a selling price that ensures these costs are covered while generating a targeted profit. Cost-based pricing provides a foundation forpricingdecisions butshouldalsoconsider marketfactors and customerdemandforoptimalpricingstrategies. ReadMore:https://www.priceintelguru.com/article/cost-based- pricing-for-manufacturing-industry
