Komentar di: Product or Service Pricing http://pelangiku.dagdigdug.com/2008/05/23/product-or-service-pricing/ Hidup Adalah Bervariasi Seperti Warna Pelangi Sun, 23 Nov 2008 10:57:16 +0000 http://wordpress.org/?v=2.3.3 Oleh: Calantha http://pelangiku.dagdigdug.com/2008/05/23/product-or-service-pricing/#comment-940 Calantha Tue, 28 Oct 2008 21:49:04 +0000 http://pelangiku.dagdigdug.com/2008/05/23/product-or-service-pricing/#comment-940 This is great info to know. This is great info to know.

]]> Oleh: Yoga http://pelangiku.dagdigdug.com/2008/05/23/product-or-service-pricing/#comment-147 Yoga Mon, 26 May 2008 08:48:37 +0000 http://pelangiku.dagdigdug.com/2008/05/23/product-or-service-pricing/#comment-147 Sorry little bit confuse, so we can use NPV and IRR to analyze the risk also? What kind of risks? How about office space-rental rate in a multi-stories building/tower with assumptions;-100% investment by owner? I know there are, maintenance fee, insurances, and tax (VAT, WHtax, Final tax income), and the risk are fire, earth quake, etc... so how to determine the rental rate based on NPV & IRR analyze for this case? (I don't need formula, just want to know how to put the risks component into cost of capital percentages) .... thank you Boss... _______________________________________ The Blog's Owner: <strong><blockquote>NPV and IRR are the ones used amongst many others in this method.</blockquote>. Take a careful look at my previous response. It says "used amongst many others", it means those NPV and IRR do not necessarily exist in every case! Understood? ;) In your case, it is even simpler! those risks that include fires, quakes, floods or even tsunamis and meteor-hits ;) can be taken into extraordinary costs and it can be included as the cost of products and you simply treat it like cost-based method above, but if you want to separate the extraordinary costs from the cost of products that would be fine too, it can still be classed as the cost-based pricing. In this case of course you don't need NPV nor IRR to come up with the pricing. ;) Well, in some businesses they may call it "cost-based pricing" but maybe for yours and for those who enjoy the term "risk-based pricing" that will do fine as well. ;) Or do you simply mean by, HOW TO CALCULATE THE RISKS (COST) ?? Is that what you mean?? </strong> Sorry little bit confuse, so we can use NPV and IRR to analyze the risk also? What kind of risks?

How about office space-rental rate in a multi-stories building/tower with assumptions;-100% investment by owner? I know there are, maintenance fee, insurances, and tax (VAT, WHtax, Final tax income), and the risk are fire, earth quake, etc… so how to determine the rental rate based on NPV & IRR analyze for this case? (I don’t need formula, just want to know how to put the risks component into cost of capital percentages)

…. thank you Boss…

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The Blog’s Owner:


NPV and IRR are the ones used amongst many others in this method.

.

Take a careful look at my previous response. It says “used amongst many others”, it means those NPV and IRR do not necessarily exist in every case! Understood? ;)

In your case, it is even simpler! those risks that include fires, quakes, floods or even tsunamis and meteor-hits ;) can be taken into extraordinary costs and it can be included as the cost of products and you simply treat it like cost-based method above, but if you want to separate the extraordinary costs from the cost of products that would be fine too, it can still be classed as the cost-based pricing. In this case of course you don’t need NPV nor IRR to come up with the pricing. ;)
Well, in some businesses they may call it “cost-based pricing” but maybe for yours and for those who enjoy the term “risk-based pricing” that will do fine as well. ;)

Or do you simply mean by, HOW TO CALCULATE THE RISKS (COST) ?? Is that what you mean??

]]> Oleh: Yoga http://pelangiku.dagdigdug.com/2008/05/23/product-or-service-pricing/#comment-140 Yoga Fri, 23 May 2008 12:16:23 +0000 http://pelangiku.dagdigdug.com/2008/05/23/product-or-service-pricing/#comment-140 How about risk-based pricing particularly in service charge, is there any techniques for this? ________________________________________ The Blog's Owner: <strong>Risk-based pricing is usually applied in financial services, but this kind of services is not market-based nor consumer-based services, it only accounts for not too significant portion in business. Of course there are a few techniques for this method but it is too prolix to write them down especially when you know that this blogsite does not support LaTex which enables us to write math formulae. NPV and IRR are the ones used amongst many others in this method. :D</strong> How about risk-based pricing particularly in service charge, is there any techniques for this?

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The Blog’s Owner:

Risk-based pricing is usually applied in financial services, but this kind of services is not market-based nor consumer-based services, it only accounts for not too significant portion in business. Of course there are a few techniques for this method but it is too prolix to write them down especially when you know that this blogsite does not support LaTex which enables us to write math formulae. NPV and IRR are the ones used amongst many others in this method. :D

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