What is Cost-Plus Pricing?

Pricing methodology sometimes agreed as part of a contingent workforce program in which the supplier provides the end-user with full visibility of all the costs in a given outsourced program and where the end-user and intermediary agree contractually on a fixed percentage of profit as part of the cost. The advantages of this model are the transparency and flexibility of determining exactly what activities and what costs are in the model and the ability to collaboratively optimize this over time. May also be known as “Should Cost Pricing.”