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CBusiness modelUpdated 2 Nov 2026

Cost-plus pricing

Pricing strategy that adds a markup to the cost of producing a product.

Definition

Cost-plus pricing is the pricing strategy that adds a markup to the cost of producing a product. It belongs in the conversation about who pays, why they pay, and how the company captures that value. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

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In the room

How the word shows up in a real conversation.

You know Cost-plus pricing is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Pricing strategy that adds a markup to the cost of producing a product.

Common mistake

Using Cost-plus pricing as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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