Chapter 4

Is cost-plus pricing safe, or just self-limiting?

Giá theo chi phí: an toàn, hay tự giới hạn?

The chapter's question

Do customers pay me because of my costs or because of the value they receive?

Big idea

Cost-plus pricing guarantees you do not lose money, and also guarantees you do not make much.

In this chapter

  1. Part 4.1

    Where Your Price Came From

    Does my price come from my costs or from someone else's price?

  2. Part 4.2

    What the Customer Gets

    How much does the customer save or earn because of me?

  3. Part 4.3

    Their Alternative

    What would they spend if they did not buy from me?

  4. Part 4.4

    Testing a Different Price

    With how many customers have I tested a higher price?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of Where the Money Is is free to read right here.

Read in Conan School

Chapters of Where the Money Is

  1. 1.How does a profitable business still run out of cash?
  2. 2.Why does selling more leave me shorter on cash?
  3. 3.When sales fall, do my costs follow?
  4. 4.Is cost-plus pricing safe, or just self-limiting?
  5. 5.Twenty numbers, or just the one that matters?