Price the value, not the cost.
Your costs set the floor and competitors set expectations, but the value customers get is what decides what they'll pay.
Cost-plus
Cost + Margin
“What does it cost us?”
Upside: simple
Downside: ignores value entirely
Competitor-based
Match The Market
“What do others charge?”
Upside: feels safe
Downside: a race to the bottom
Value-based
Share Of Value
“What is it worth to them?”
Upside: fair and sustainable
Downside: needs real customer insight
Price reflects value delivered.