Cost Plus Pricing

As a manufacturer, you are probably using cost plus pricing.

Oh, sure, you probably give lip service to value based pricing.

But I can almost assure you, you’re really relying on cost plus, how do I know this?

Because what’s happening inside your company is you have figured out your margins, you figured out your costs. And you allow your salespeople or your business leaders to set prices, so that they can come down towards those costs as long as they maintain a specific margin. This is really cost plus pricing, even though you don’t think of it that way.

And what we want to learn to do is shift our thinking into value based pricing.

How much does a customer truly value your products? Because once we understand that, we have better abilities to win more business at higher prices. I can practically guarantee you that you have products in your portfolio where we could be getting higher margins, I could practically guarantee you that you have customers who are willing to pay you higher prices. 

What we have to do is learn to think about how our customers perceive the value of our products. 

I’m Mark Stiving and I’ve been teaching pricing for 30 years. And if you would like me to help your organization and you’d like to learn from our next virtual seminar, please come to “How manufacturers can fearlessly raise prices now.” I hope I can help you there.

To learn more, go to


Pricing Best Practices:
How Private Equity Can Drive Value Without Compromising Relationships

Don't miss out on this opportunity to enhance your pricing approach and drive increased value.

Our Speakers

Mark Stiving, Ph.D.

CEO at Impact Pricing

Alexis Underwood

Managing Director at Wynnchurch Capital, L.P.

Stephen Plume

Managing Director of
The Entrepreneurs' Fund