Cost-Plus Pricing Strategy at Hanif Jaya Motor Workshop Jatibarang-Indramayu

Abstract

The automotive industry in Indonesia has an equally important role in the economy, with substantial investment and strong growth in production. The two- and three-wheeled motor vehicle sector shows great potential to contribute to the implementation of the automation industry. Increased number of motorcycles in Indonesia creating promising workshop business opportunities, especially with the rapid growth of service businesses. Hanif Jaya Motor Service Station are small and middle enterprise in Indramayu which has experienced a decline in consumers due to fierce competition, especially in terms of price. Pricing and price competition are the main challenges in retaining and attracting consumers. Based on a descriptive approach, this research is a qualitative learning. It intent to explain the phenomenon of Hanif Jaya Motor workshop from December 2022 to December 2023. Primary data was obtained through structured interviews with workshop owners, using Whatsapp communication and participatory observation. This study uses theory to construct a model and validate the meaning carried out by researchers to solve issues in determining selling prices at Hanif Jaya Motor Workshop and implementing of cost-plus pricing method through a full costing and variables approach to be a compared with the pricing carried out by Hanif Jaya Motor workshop. The results showed that the pricing carried out using the cost-plus pricing methode through the full-costing approach showed higher value with 20% markup percentage sales as opposed to the selling price set by owner Hanif Jaya Motor workshop.