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Cost Plus Fixed Fee

oboloo Glossary

Cost Plus Fixed Fee

Cost Plus Fixed Fee is a method of pricing that covers all the costs associated with providing goods or services to a customer, plus an agreed-upon fee for the time, effort, and expertise of the supplier. It’s a popular option for businesses that want to ensure they will cover their costs, while still offering an incentive for excellence in workmanship and customer service. With Cost Plus Fixed Fee, both suppliers and customers know what to expect – suppliers get the assurance that their costs will be covered, while customers get a final price with confidence. When executed correctly, this pricing model offers excellent value for both parties involved.

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