Definition

A pricing model where a service or product is offered to customers at the price it costs the provider to deliver, with no additional profit margin added. This is often employed by companies whose primary business is in a related field.

Why it matters (in Poovi’s context)

Offers significant long-term cost savings for consumers, as seen with Cloudflare’s domain registration service.

Key properties or components

  • No profit margin
  • Covers only direct costs
  • Beneficial for long-term users
  • Often from non-core business units

Contradictions or debates

None.

Sources