What is cost plus pricing strategy?

With Rupee sliding what strategy can importers adopt in terms of pricing? Importers can't absorb the cost and constant price increases will deter consumers. Order was placed @61/- to the $ not it is estimated @68/-. Course of action ?

• Answer:

  If competition is low, customer can not defer purchase - Pass the cost to the customer If competition is high, customer can not defer purchase- Compromise on your margins i.e atleast partially absorb the increased cost (cost of losing market share much more than this, extra discounts and ads to win back the customer) If competition is low, customer can defer purchase - Ask the customer to wait and do follow up to deliver at the appropriate price If competition is high, customer can defer purchase - Act based on your competitors' strategy ( Aggresive- Win customers at the cost of margins, Defensive- Mimic competitors) PS: Customer loyalty, Reserves, Liquidity all should be considered.  Advise based on a personal view that rupee depreciation is likely to be arrested in the short term.