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Cost-plus pricing sounds logical, add a margin on top of your costs and call it a day. But in reality, it caps your profit, hides inefficiencies, and forces customers to pay for your past mistakes. In this episode, we break down the behavioral economics of cost versus sunk cost, and how ignoring sunk costs can make your pricing more strategic. You’ll learn how to separate fixed from variable costs, play with seasonal margins, and price based on value, not old investments.
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Hosted on Acast. See acast.com/privacy for more information.
By Decision AlphaCost-plus pricing sounds logical, add a margin on top of your costs and call it a day. But in reality, it caps your profit, hides inefficiencies, and forces customers to pay for your past mistakes. In this episode, we break down the behavioral economics of cost versus sunk cost, and how ignoring sunk costs can make your pricing more strategic. You’ll learn how to separate fixed from variable costs, play with seasonal margins, and price based on value, not old investments.
Connect
Credits
Hosted on Acast. See acast.com/privacy for more information.