Prices/pricing value-based

High value-to-price ratio based on critical selection and evalutation of the vast literature on the subject... 

Currently, physicians and patients determine the demand for pharmaceuticals and employers and insurers assume the risk and cost. As the price of new health care technologies escalates, payers will design and implement strategies to share risk and cost. Defined employer contributions, increased patient cost sharing, and benefit exclusions will be used to help control utilization and cost. In this environment, value-based assessments will be crucial to the adoption of any technological innovation. It is reasonable to expect public and private coverage for new therapies if evidence is provided regarding the costs and consequences of treatment. However, social and ethical dilemmas will certainly arise as therapies whose costs exceed their benefits are debated in the public arena. 

Christopher M, Gattoma J (2005) Supply chain cost management and value-based pricing. Industrial Marketing Management 34 (2) 115-121 Clark E, Lesourd J, Thieblemont R (2001) International commodity trading physical and derivative markets, John Wiley Sons, Chichester Commodity Research Bureau (2005) The CRB Commodity Yearbook 2005, John Wiley Sons, Chichester... 

Projections of U.S. oil imports based on low and high crude price values (15). 

While there are large unknowns about the cost of high temperature electrolysis systems, an economic assessment can be made of the peak electricity market underlying the potential system economics. The distinguishing characteristic of this system is that the electricity is sold to meet the needs of three premium markets (US DOE, 2007b), in which the value and price of electricity are far above the price of base-load electricity. These three markets (Table 1) determine the technical requirements and economic viability of the concept. 

Demand for our services is inhibited by the cost, which is often higher than the value of the book or document. Prices are based on the number of hours of labor required to complete the treatment of the item. Quality conservation cannot be done quickly, and it is difficult to perform professional conservation at prices low enough to stimulate heavy use. If we could slash our hourly rate in half, we might be swamped with work, but necessity dictates that we charge rates that realistically reflect the costs of providing the service. As it is, our prices are somewhat lower than those of a private conservator or commercial concern, but they are still prohibitively high for many of the institutions that would like to bring work to us. 

The value-based approach presumes that quality can be defined in terms of costs and prices. Garvin (1984b, p. 28) uses the following example to clarify this perspective [A] 500 running shoe, no matter how well constructed, could not be a quality product, for it would find few buyers. Reeves and Bednar (1994) emphasize that this definition of quality forces firms to concentrate on internal efficiency ( internal conformance to specifications ) and external effectiveness ( the extent to which external customer expectations are met ). However, this approach mixes two distinct, though related, concepts quality and value (Reeves and Bednar 1994). Because of its hybrid nature, this concept lacks definitional clarity and might result in incompatible designs when implemented in practice. 

The value-based approach relates the performance of a product or service to its price or the cost associated with its production. According to this notion, those products that offer a certain performance at a reasonable price are products with high quality. 

Value based Feigenbaum 1983 Quality means best of certain conditions (a) the actual use, and (b) the seUing price. ... 

Quality—Conformance to requirements or fitness for use. Quality can be defined through five principal approaches (1) Transcendent quality is an ideal, a condition of excellence. (2) Product-based quality is based on a product attribute. (3) User-based quality is fitness for use. (4) Manufacturing-based quality is conformance to requirements. (5) Value-based quality is the degree of excellence at an acceptable price. Also, quality has two major components (1) quality of conformance—quality is defined by the absence of defects, and (2) quality of design—quality is measured by the degree of customer satisfaction with a product s characteristics and features. 

Value-based quality is the degree of excellence at an acceptable price. Also, quality has two major components (1) quality of conformance—quality is defined by the absence of defects, and (2) quality of design—quality is measured by the degree of customer satisfaction with a product s characteristics and features. 

Realizing the shortcomings in the enthalpy-based method, Kenney (1984) proposed to value steam based on the potential work that the steam possesses in comparison with enthalpy. Kenney pointed out that the enthalpy-based pricing method is based on the first law of thermodynamics (energy conservation), while the work-based pricing is based on the second law of thermodynamics (entropy). In thermodynamics, potential work is also termed as availability (a) implying the amount of potential work available. 

Value-based - defines quality in terms of cost and price... 

Sculpher M (2013) Pricing and reimbursement schemes is value-base pricing a feasible policy in latin-american countries ISPOR 4th Latin American Conference, http //www.ispor.org/conferences/... 

Activity costing would help Acme understand which sales are "profitable." Profitability would be measured here in terms of total contribution. Acme served many customers with a wide product range. But Acme had little left in the way of profit, despite resurgent demand. Activity costs would point to the profitable and unprofitable businesses. Activity costs would also support service-based pricing. Service-based pricing would mean more services should cost more. It maintains that non-product supply chain services have value. A customer drawing heavily on readily available finished goods inventory and technical support, for example, should pay more. 

Supplier Supplier provides exactly to the contract agreement Agreements are short-term transactions Offer improvement suggestions Provide no special expertise electronic purchasing Commit to cost improvements E-Procurement Non-traditional pricing Value added through expertise Metrics-based agreement... 

Independent Land Value Evaluators. As stated earlier, the land was identified and acquired by the District Collector and he/she only decides the price of the land. This procedure was not a fair process. The idea of using market price (market value was decided based on the stamp duty charged (a state government levied tax on the sale of property) on the land in the vicinity of the project) has also not worked well as the land market was highly underpriced. For paying low stamp duty, a price much lower than the under priced value was quoted. In India, there are no independent land value evaluators and there is no legislation that identifies such a profession. The creation... 

The market value of a firm is a reflection of what investors think of the company s past performance and future outlook. This perception is portrayed through valuation ratios. Company stock prices fluctuate based on investor sentiment thus stock prices are generally higher when investors are pleased with the company s past performance and future prospects. Valuation ratios generally include the number of company shares available and stock prices. 

Many investors are particularly interested in a company s cash flow and find that the price-to-cash-flow ratio is more useful and reliable than the price-to-earnings ratio. Investors realize that net earnings take into account many noncash charges such as depreciation and amortization that reduce net earnings. Since stock prices fluctuate based on future cash flow projections, this ratio measures stock investment attractiveness. Since investors value companies based on future cash flows, the discussion in later chapters will concentrate on firm value and cash flow. 

To further define what is reasonably foreseeable, particular conditions of contract are often added (for instance The Contractor s price is based on the assumption that the SPT value of the sands to be dredged is lower than 30). 

Our focus is on a particular innovative procurement mechanism value-based pricing of medicines. While this is to date a mechanism largely experimented with in high-income countries, we think it is important because it shifts the attention of procurement policy from a market (often monopoly) price for an already developed drug to an assessment of how a drug will actually work in particular country contexts and for identified needs. Its attractiveness is in indicating ways forward in adapting procurement to a focus on population health benefit and patient needs. 

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