Cost-based pricing is a proven strategy for generating predictable revenue. Companies use this model to improve their bottom line and differentiate themselves, and it works. For instance, Everlane uses a cost-based pricing model to differentiate itself from its competitors — and its revenue has grown year-over-year with no sign of stopping.

Sometimes your pricing model can be a powerful talking point that helps salespeople generate more sales. It can be an excellent addition to your marketing verbiage, especially if others in your industry overprice their products and services.

Below, let’s review the definition of a cost-based pricing strategy, the

Sales Representative

This post was originally published on this site