In a very chaotic world, such as the one in which we currently find ourselves, cost-plus pricing is straight forward. Costing, however, can be rather complex, which makes managing dynamic cost-plus pricing very tricky. If your main pricing orientation is cost-based or cost-plus, you should consider the points presented here in order to survive current challenges.
Despite the increasing industry-wide move towards and focus on value-based pricing, it is still clear that cost plus has its role as a pricing strategy in a number of instances. But even when a cost-plus pricing strategy is used, be careful about what the real advantages are, and what alternative strategies exist.