Simple to figure out. As mentioned above, this is one of the simplest pricing strategies. The main cost is based on your expenses, and the margin is formed depending on demand, product quality, and your industry.
Easy to justify. Such pricing is considered the most justified, since the price does not increase out of nowhere: the price increases due to the fact that production costs are increasing. In this regard, this is one of the most honest strategies.
Consistent rate of return. Cost-plus pricing can give you a guarantee that the prices of your products will always exceed the costs. With other, more complex strategies, this is not always possible to predict.
Good for testing the market. This is a useful strategy for newcomers to the market, as it allows you to determine how much the buyer will be willing to pay for the product. Thus, the margin and future profit of the company are determined.