Kostenhandel

Kostenhandel, also known as cost-plus pricing, is a pricing strategy in which the seller adds a percentage or fixed amount to the cost of goods sold to determine the selling price. This method is commonly used in industries where the cost of production is a significant factor in determining the price, such as manufacturing, construction, and certain service industries. The primary advantage of Kostenhandel is its simplicity, as it does not require extensive market research or pricing analysis. However, it may not always result in competitive pricing, as it does not take into account market demand or competitor pricing. Additionally, if the cost of goods sold increases, the selling price will also increase, which may not be desirable in a competitive market. Despite these potential drawbacks, Kostenhandel remains a popular pricing strategy due to its straightforward approach and ease of implementation.