Formula pricing

Formula pricing is a way of working out the cost of a product or service. It uses a set formula to work out the cost and it's usually based on different factors like the materials used, how long it took to do, and how much it cost to produce. So, it's like a recipe: you add up all the ingredients you need, how much time it takes to put it together, and what it costs to make it, and then it tells you how much it will cost you.