Service based pricing

Second order reinforcing activities. This type of fit is between activities where one activity supports another. For example, Activity Costing also reinforces another activity, Service-Based Pricing. Activity costs provide the data to set service-related prices. (The term activity in this case is also used in Activity-Based Costing, ABC. This is a separate use of the term from its application in Activity Systems.) Changing the way scheduling is done (Varied... 

Service-based pricing Work with suppliers to lower cost and ensure the supply of incoming material III, vertical, many-to-one... 

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. 

Induction motors with a 15% service factor are still available. Large open motors (except splash-proof) are available for an addition of 5% to the base price, with a specified temperature rise of 90°C for Class B insulation by resistance at the overload horsepower. This means the net price will be approximately the same. At nameplate... 

Today, almost all large motors are designed specifically for a particular application and for a specific driven machine. In sizing the motor for the load, the horsepower is usually selected so that additional overload capacity is not required. Therefore, customers should not be required to pay for capability they do not require. With the elimination of the service factor, standard motor base prices have been reduced 4—5% to reflect the savings. Users should specify standard horsepower ratings, without service factor for these reasons ... 

Traditionally, a common solution to the problem of matching relatively higher levels of technical support with lower chemical volumes for these smaller customers has been via a one- to three-year, fully inclusive product and services contract. Such a contract will specify the frequency of service visits to be made to the customer s site and the type of work to be carried out. It will also, perhaps, limit the maximum volumes of chemical treatments to be supplied during the contract lifetime, or perhaps designate the amount of chemicals required based on treating a certain annual volume of boiler FW. Contracts may include for the provision of chemical feed and control equipment and for the supply of labor for boiler cleaning, chemical addition, and drum removal services (drumless delivery). Product and services contract prices may some-... 

In custom manufacturing, supply contracts are product-based (unit price in /kg), whereas in contract research agreements they are service-based (FTEs in /scientist-year). The two types of contract are discussed in more detail below Agreeing on the price for a fine chemical is only one, albeit essential, element of a custom manufacturing deal between the supplier (fine-chemical company) and the customer (specialty-chemical company). The supply... 

NOTE A pencil quote is an outline of what products, services, and prices could possibly be contained in the proposal, based on what is revealed by the survey. A trial close is an initial attempt at requesting an order, or obtaining some degree of buyer commitment, based on meeting agreed conditions that will appear later in a firm proposal. 

Linking gas prices to that of other fuels (formula-based pricing) exposes cash flow to same kind of volatility as that of, for example, crude oil. Once downstream infrastructure is in place, it may become efficient to bring gas from other sources. Forex control may lock in upstream and midstream investment, reduce returns for investors and hinder debt servicing. 

Today, 45 years later, that vision appears close to becoming reality. In 2008, Amazon announced the availabihty of its Elastic Compute Cloud (EC2), making it possible for aityone with a credit card to use the servers in Amazon s datacenters for 10 cents per server hour with no minimum or maximum purchase and no contract (Amazon AWS, 2008b). Amazon has since added options and services and reduced the base price to 8.5 cents per server hour.) The user is charged for only as long as he/she uses the computer rounded up to the next hoirr. 

The Internet access provision structure also has relevance. Private sector Internet service providers (ISPs) commonly offer services based on their hotspot locations. They are commonly located in hotels, airports and other location specific places. These services are either provided by national or international Internet operators. In general, teleoperators commonly have a strong position in Internet service provision. Private hotspot Internet use is priced according to each company s policies depending on use time from minutes to weeks. 

STN Easy is an end-user tool that provides access to high-quality scientific and technical information from some of the most highly regarded databases in these areas worldwide. It allows the user to search for information and in databases that have until now only been offered on specialized professional on-line services. Much of the information is currently unavailable anywhere else on the Internet. The service offers an intuitive, user-friendly GUI, powerful search capabilities (including relevance ranking), output-based pricing, and other features preferred by end-users. 

Farr, J. V. (2001). Commodities and Value Based Pricing of Engineering Services, draft paper (For current version of the paper and other matters, contact the author at ifarr stevens-tech.edu.)... 

Pricing of specialty chemicals and specialty chemical systems is, as noted, based on value to the customer. The elements of taw matetial and production cost enter into the producer s calculations, but extra emphasis must be given to appHcations research and service costs with minimal attention in most cases to capital costs. 

Equipment Costs. Equipment costs include the purchased cost of process and materials handling equipment, storage faciUties, waste treatment equipment, stmctures, and site service faciUties. Installation costs such as insulation, piping, painting and finishing, foundations, process stmctures, instmmentation, and electrical service connections are estimated or factored separately. Actual quoted prices from suppHers are the best data, but these are not usually available when estimates are made. The quick, inexpensive cost estimates are based largely on personal cost files, internal company cost data, or pubUshed cost correlations. 

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