Cost-plus pricing is a pricing strategy where a business determines the selling price of a product by adding a specific markup to its total production cost. This total cost includes all expenses related to manufacturing, such as materials, labor, and overhead. The markup is usually a percentage of the total cost, ensuring that the company covers its expenses and earns a profit. This method is straightforward and helps businesses maintain consistent profit margins. However, it may not always consider market demand or competition, which can lead to prices that are either too high or too low compared to similar products in the market.