2min chapter

One Knight in Product cover image

Getting Your SaaS Pricing & Packaging Right (with Dan Balcauski, Founder & Chief Pricing Officer @ Product Tranquility)

One Knight in Product

CHAPTER

What Are the Pros and Cons of Cost Plus Models?

value based is kind of as we say, like the holy gral an't it? It's the way where you can go out there and really charge a fair price for the value you're giving. A cost plus model is the simplest orientation to pricing. There's no consideration in that model of a customer's willingness to pay or the perceived value of the product. And it doesn't take your competition into account when devising pricing.

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