Need Cost Plus Pricing? We Make It Easy
Streamlining Cost Plus Management
See how Rockton Pricing Management simplifies the process.
Companies That Trust Rockton
Key Features of RPM That Solve Markup, Margin, and Cost Plus Pricing Challenges
Prevent margin loss by enforcing a minimum sell price based on cost.
Sell prices update automatically in response to changes in cost.
Calculate landed costs based on a variable percentage by item, streamlining pricing decisions.
Utilize landed cost or other plateau prices to inform the rest of your pricing strategy, enhancing flexibility and adaptability.
How Rockton Pricing Management Solves Cost Plus Pricing Challenges
Simplify Pricing Updates
Using percentage-based cost-plus pricing makes frequent pricing changes and updating price lists easier than ever. Prices are updated immediately and automatically based on changes in cost.
Maximize Profits and Margins
Rockton Pricing Management uses percentage-based cost-plus pricing, which eliminates the need for manual price sheets. Prices are immediately reflective of any changes in cost.
Efficient Margin and Product Group Management
Rockton Pricing Management enables businesses to manage margins and product groups effortlessly. Complex calculations based on factors like customer class or item class can be automated, streamlining the process.
Compatibility with RPM Cost-Plus Pricing
Businesses utilizing any accounting/ERP software can leverage this essential pricing strategy seamlessly with Rockton Pricing Management.
Flexible Plateau Pricing Definitions
Defining plateaus, such as Landed Cost, Loaded Cost, or Customer Tiers, is made simple with Rockton Pricing Management’s modular calculations and configurations. These definitions are reusable across scenarios, saving time and effort.
6 Key Benefits of RPM Implementation
Identifying Misalignments & Building Clarity
Identify miscommunication and assumptions between departments and align the organization on current practices, inefficiencies, and areas for improvement.
Designing an Optimized Process
Facilitate discussions on what’s working, what’s not, and what can be improved to establish a clear strategy to achieve business goals.
Driving Change Management
Guide teams in overcoming resistance to change, reinforce alignment with strategic goals, and foster understanding and commitment.
Mapping Business Goals into RPM
Translate high-level business objectives into concrete calculations and configurations within Rockton Pricing Management.
Comprehensive Training & Empowerment
Provide extensive training to ensure multiple teams can set up, validate, and maintain the system, ensuring continuity, accountability, and adaptability over time.
Ensuring Long-Term Sustainability
Equip the company with the tools and knowledge to adapt the system as the business evolves, ensuring long-term innovation and success.
Rockton Pricing Management is the most flexible, powerful, multi-platform pricing solution you’ve ever used.
See the full list of pricing challenges it solves:
Rockton Pricing Management Works With Any Accounting/ERP Software System
Is your accounting/ERP software not listed here? No problem! Using an API you can connect Rockton Pricing Management to any ERP system for cost plus pricing management.
How Much Does Rockton Pricing Management Cost?
Pricing is based on the number of system user licenses in your primary accounting/ERP system. All monthly subscriptions include UNLIMITED product support with Rockton Software. Implementation services are required for Rockton Pricing Management.
Hear It From Real Users of Rockton Pricing Management
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Frequently Asked Questions about Cost-Plus Pricing with Rockton Pricing Management
What is Cost-Plus Pricing?
Cost-plus pricing is a straightforward pricing strategy where you determine the total cost of a good or service and then add a fixed percentage (markup) to arrive at the selling price. It’s also known as “markup pricing” and aims to ensure a baseline profit on every sale.
Why would I use a Cost-Plus Pricing strategy?
Cost-plus pricing is beneficial for anticipating profitability and making strategic decisions, especially when production costs are stable, competition is low, price elasticity is minimal, or your goal is to simply recover costs and make a small profit. It’s also commonly used for government contracts due to its transparency and by retailers with high sales volumes.
How do you calculate Cost-Plus Pricing?
The general formula is: Selling Price = Total Cost per Unit + (Total Cost per Unit × Markup Percentage). To calculate this, you first determine your total costs (direct, indirect, and additional), then calculate the unit cost (Total Cost / Total Output), decide on your desired markup percentage, and finally apply the markup to the unit cost to get the selling price.
What are the advantages of Cost-Plus Pricing?
- Perceived Fairness: Buyers often see it as reasonable and transparent.
- Competitive Stability: In certain markets, it can reduce aggressive price competition.
- Suitable for Limited Market Intelligence: It provides a practical pricing solution when competitive data is scarce.
- Induces Contract Acceptance: Useful for contracts with uncertain costs or where costs are a large fraction of revenue.
How does Rockton Pricing Management (RPM) simplify Cost-Plus Pricing?
Rockton Pricing Management streamlines cost-plus pricing by:
- Automating Price Updates: Prices update automatically and immediately in response to cost changes.
- Preventing Margin Loss: It enforces minimum sell prices based on cost to prevent selling below profitability.
- Calculating Landed Costs: RPM can calculate landed costs based on variable percentages by item, simplifying decisions.
- Maximizing Profits and Margins: It eliminates the need for manual price sheets, ensuring prices reflect cost changes instantly.
- Efficient Margin and Product Group Management: It automates complex calculations based on factors like customer class or item class.
- Flexible Plateau Pricing Definitions: Allows easy definition and reusability of plateaus like Landed Cost or Customer Tiers.
- Compatibility: Works with any accounting/ERP software via API.
Can Rockton Pricing Management handle complex cost-plus scenarios?
Yes, RPM is designed for complex pricing. For instance, it can manage volume-based margin calculations, customer-specific deals, multiple dealer categories with varying pricing rules, date-driven special pricing, and even track rebates for items sold at a loss to ensure vendor payments.
What technology does Rockton Pricing Management integrate with for Cost-Plus Pricing?
Rockton Pricing Management is a flexible, multi-platform solution that can connect with any accounting/ERP system via API. It complements and enhances systems like Enterprise Resource Planning (ERP), Configure, Price, Quote (CPQ) software, Business Intelligence (BI) and Analytics Tools, and Financial Management Tools to ensure accurate and efficient cost-plus pricing.