Glossary
Cost-plus pricing
It means adding a fixed percentage of profit to an item's cost to get the selling price.
What it means for a shop owner
It is simple and safe because it guarantees a margin above cost. But it ignores what customers will pay and what others charge. Use a margin calculator so you do not mix up margin and markup.
A worked example
An item costs 8 and you add 25 percent, so the price is 10.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes