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How to price your product - cost based pricing. #shorts

Name: How to price your product - cost based pricing. #shorts
Uploaded: 2023-02-27T22:47:26+00:00
Duration: 40 s
Channel: Royston G King
Description: In this brief instructional video, the speaker explains cost‑based pricing, a method where a seller determines a product’s price by adding a margin to…

27 Feb 2023 · 1 min

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In this brief instructional video, the speaker explains cost‑based pricing, a method where a seller determines a product’s price by adding a margin to the cost of producing or delivering the item. The explanation includes a simple definition, the concept of adding a margin, and two concrete examples: a low‑cost soda that costs $0.50 to make and is sold for $0.70 after a $0.20 margin, and a software service that costs $100 to host and is sold for $200 after doubling the cost. The tone is conversational and instructional, aiming to give viewers a quick, practical understanding of how to set prices using cost‑based pricing.

Chapters

Cost-based pricing is when you take the price that it costs you to manufacture, produce, or deliver a product and then add some sort of margin on top of that. So you can take, you know, a soda off the shelf, right? You might— it might take— cost them 50 cents to make it. A low-cost soda might go in and charge, you know, a 20-cent margin and then sell it for 70 cents. Similarly, right, if you're selling a software, you might say, hey, it only costs us $100 to host this, so we're gonna, you know, double the price and charge $200 for our piece of software.