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> "Cost + Margin = Selling Price." that's cost-plus pricing, and should be viewed as a relatively naive model that is no longer typically used for pricing. sop
by clairity 6y ago
> "Cost + Margin = Selling Price."
that's cost-plus pricing, and should be viewed as a relatively naive model that is no longer typically used for pricing. sophisticated pricing decisions are based on price elasticities to find the profit-maximizing price. apple is a notable example of a company that exhibits this type of pricing decision-making.
- trilinearnz 6y agoCheers for the clarification :)