A Balanced Assessment of Cost-based Pricing

Cost-based pricing has substantial pros and cons. To use it effectively, entrepreneurs & managers need a complete, balanced understanding of this pricing method.

Have you heard of the British artist Jack Vettriano’s painting, the Singing Butler? Every art critic and informed art lover despises it. Yet, it is widely regarded as the most popular British artwork. Its last sale price was over a million dollars.

Cost-based pricing is a lot like the Singing Butler. Virtually every manager (and every single business sc…