Pricing strategies for managed services,how to video edit instagram,movie maker book trailer,software mac fashion design - New On 2016

Pricing strategies for IT services are too often based on what someone else is doing, what someone else wants, or based on a meager increase to the cost of providing the service.
Time and again IT services providers sit in on keynote speeches wherein the speaker boasts of charging two or three times as much as everyone else for the same offering. If part of demonstrating your value proposition is detailing how your service is superior to that of your competitors then you should be more than willing to charge more than those competitors! Click here to learn how Mosaic NetworX delivers custom solutions to clients that understand the advantages of paying for IT expertise!
I think we all have to ask ourselves these questions and continue to reevaluate our pricing structures when establishing new client relationships. Corn and soybean producers have long identified price risk as one of the highest risk management priorities of the farm business. A second source of challenge and frustration in making corn and soybean pricing decisions is that future prices cannot be anticipated with a high degree of accuracy. The traditional approach to making corn and soybean pricing decisions has been to use a combination of analytical techniques (generally characterized as fundamental and technical analysis) to forecast future price behavior and then time pricing decisions based on those forecasts. The development of new decision-rule grain pricing contracts adds another dimension to price risk management (Hagedorn, et al., 2003). The purpose of this brief is to introduce a new approach to making corn and soybean pricing decisions. The first step in this new approach is to select the appropriate time window for pricing corn and soybean crops.
The second step in the new approach is to determine the relevant set of crop pricing strategies.
The portfolio approach to developing corn and soybean marketing strategies is a general approach to making pricing decisions and is similar to the oft recommended strategy of diversifying an investment portfolio. The third step in the new approach is to decide on the proportions of the crop to be marketed via each of the pricing strategies. The rows in the expanded matrix are divided based on marketing discipline, with disciplined marketers preferring self-directed approaches and undisciplined marketers preferring externally managed approaches. In this example, the proportions are heavily weighted towards mechanical strategies (80%) due to the producer's beliefs about market efficiency, risk preferences, and financial position.
The fourth step in the new approach is to evaluate performance after the marketing window is completed. The starting point is to compute a net price received for each pricing allocation that is comparable across allocations and crop years. The pricing matrix approach to developing corn and soybean marketing strategies is a general approach to making pricing decisions. As a final point, we want to emphasize our belief that many producers are substantially under-diversified in terms of pricing approaches, with an over-reliance on self-directed active strategies (upper-right cell of the pricing matrix). This magazine is an archived publication and may contain dated technical, contact, and link information. Combining access control, vehicle eligibility, and pricing strategies can help mitigate congestion and improve mobility on the Nation's busiest roadways.
As the public's desire to travel on highway facilities continues to grow, so will the levels of congestion. The continued growth in travel demand exceeds agencies' abilities to provide sufficient roadway capacity based on limited public funding for roadway expansion projects. The concept of managed lanes involves proactively applying proven operational strategies in response to changing traffic and roadway conditions. The Federal Highway Administration (FHWA) defines managed lanes as highway facilities or a set of lanes in which operational strategies are implemented and managed (in real time) in response to changing conditions.
According to Ginger Goodin, with the Texas Transportation Institute and chair of the Transportation Research Board's (TRB) Joint Subcommittee on Managed Lanes, "If you subscribe to the notion that you cannot build your way out of congestion in developed urban freeway corridors, then managed lanes offer an opportunity to preserve a portion of the freeway capacity for a higher level of service.
The horizontal axis plots the lanes or managed lane facilities where one or several operational strategies are actively applied in response to changing roadway conditions.
Managed lanes offer the potential to improve the range of benefits that agencies typically realize from traditional freeway management strategies. The San Diego Association of Governments (SANDAG) employs advanced signing to help motorists use the I-15 FasTrak lanes effectively.
FHWA recommends implementing the appropriate operational strategies, control plans, and actions before the flow of traffic breaks down. Because HOV lanes carry vehicles with a higher number of occupants, they have the potential to move more people in a smaller number of vehicles, in comparison to the adjoining general purpose travel lanes, during congested travel periods. Similarly, commuters using HOV lanes in Texas save an average of 2 to 18 minutes during the peak hour, according to the Texas Transportation Institute's ABCs of HOV: The Texas Experience, Report 1353-I.
The figure depicts the potential impacts of raising or lowering the occupancy requirement on the utilization and performance of HOV lanes.
HOV lanes may be warranted outside the traditional peak commuting periods to deliver travel-time incentives to vehicles with more than two occupants, whenever congestion may occur along urban freeway corridors. The use of HOV lanes or occupancy as the only operational strategy may not be appropriate in every location or for all time periods during the day. The study found that a large share of the public in San Diego has grown to understand the value of priced and managed lanes, and that simply providing new general purpose lanes, without fees or other restrictions, will not help much in relieving congestion due to continuing increases in traffic. Overall support: 92 percent of respondents think it is a good idea to have a timesaving option.
Regular lane user support: Almost two-thirds of users who do not use the HOT lanes also support the HOT lane program. During peak travel periods in many metropolitan areas, the HOV lanes are already operating at or very close to their maximum vehicle carrying capacity. Historically agencies have had limited options available to improve the performance of HOV lanes. One managed lane technique that agencies have implemented successfully to improve the performance of freeway facilities involves combining the use of tolls with vehicle occupancy requirements, in the form of a high-occupancy toll (HOT) lane.
Another concept gaining interest is the use of truck-only toll (TOT) lanes, where tolls would be charged to trucks choosing to use a lane or facility that would be restricted to other vehicles. The table summarizes the key operational aspects of pricing that FHWA identified from the value pricing projects implemented in the United States over the past decade.
In a recent article, USA Today's Debbie Howlett noted that "Texas, Virginia, and California officials .
The experiences and lessons learned from the limited number of managed lanes that have been implemented represent a valuable source of information, especially because many of these concepts are new in transportation applications.
On State Route (SR) 91 in Orange County, CA, four express lanes (HOT) in the median of the 12-lane freeway make use of occupancy and variable pricing to ensure efficient flow of traffic and to maximize vehicle throughput and travel speeds. A motorist passes through an enforcement zone while heading westbound on the I-10 Katy Freeway in Houston, TX. Agencies should be aware of, consider, and prepare for the following key institutional, organizational, and technical issues that they may encounter throughout the key phases in the life cycle of a managed lane facility.
Expand initial commitments to implement managed lanes to include the necessary resources to manage, operate, and enforce the facilities. Consider the pros and cons of implementing managed lanes on new roadway capacity versus taking away existing general purpose lanes. Recognize that the cost for new construction will be higher where space is not available in freeway medians.
Recognize that the primary benefits from managed lane systems come from the integration of multiple strategies, and in doing so may involve multiple agencies such as DOTs, transit agencies, and tolling authorities.


The figure depicts the range of conditions and decisions that agencies may face when they combine the use of occupancy and pricing.
Identify managed lanes as a key strategy and integrate them into the appropriate agency and regional strategic and program plans, including statewide transportations plans, regional transportations plans (20-year plans for metropolitan planning organizations), long-range plans for freeway network and transit systems, corridor plans, and facility improvement planning. Recognize opportunities to implement managed lanes: convert existing HOV lanes into managed lanes (such as HOT lanes) or integrate them into roadway improvement projects. Apply previous experience with various operational strategies (like ramp metering, HOV lanes, and pricing) toward successful operation of managed lanes.
Recognize that the limited availability of space within the majority of freeway rights-of-way requires compromises to accommodate managed lanes within existing freeway cross sections. Analyze the effects of different traffic management strategies and control plans in evaluating the performance of various operational strategies that may used on managed lanes.
Install sufficient traffic management, monitoring, and control devices to enable agencies to make real-time operational decisions, and have the capability to implement the necessary strategies to manage the roadway network. FHWA expects that the number of managed lane facilities in operation will increase significantly in the coming years, as agencies begin implementing new projects based on commitments associated with feasibility studies already completed. Design flexibility into the facilities to accommodate future changes in operational strategies. Remember that managed lanes are justifiable 24 hours a day and 7 days a week; they should not be limited to operation only during peak commuting periods when recurring congestion typically occurs.
Recognize that the integrity of the managed lane approach relies on establishing and maintaining the legislation, policies, interagency agreements, procedures, protocols, control plans, intelligent transportation systems (ITS), and support services (such as enforcement and traffic management) required to sustain day-today operation. Do not confuse managed lanes with toll facilities, where the primary objective may be revenue generation at the expense of mobility. Managing and controlling traffic on dual or separate roadways that are interconnected on the same freeway facility presents new challenges for agencies to address and overcome in the planning, design, implementation, enforcement, and evaluation of managed lane facilities and the strategies used to operate them.
FHWA initiated a cross-cutting study and primer summarizing the current developments, benefits, and lessons learned from managed lane projects around the country.
TRB formed a Joint Subcommittee on Managed Lanes in the summer of 2004 to facilitate identifying research and technology transfer needs for managed lanes.
TRB, FHWA, and others are planning a conference for the spring of 2005 in Houston, TX, to advance the state of the art related to HOV systems, managed lanes, and pricing strategies.
FHWA initiated work that will be available in early 2006, including the following: (1) Identifying the driver information needs and recommendations for sign sequencing and placement, and determining revisions to the Manual on Uniform Traffic Control Devices and research needs to support the signing for managed lanes.
Texas DOT is advancing research on a number of different issues related to managed lanes, including planning, design, and operations.
Adjustable overhead signage enables the New Jersey Turnpike Authority to change the types of vehicles that may use different sections of the barrierseparate freeway (shown here) based on traffic and roadway conditions. Managed lanes provide the opportunity to manage and control traffic proactively, in response to changing traffic and roadway conditions on freeway facilities.
Specifically, his company would be contacted when a business wanted to move from their current email provider to a more refined and reputable solution that Kyle’s business sold. Otherwise, a completely inconsequential price is set because the provider thinks it won’t be too off-putting to potential clients. As the article explains, the value of something is what the market will bear in exchange for that service or good. One of the major challenges, as well as sources of frustration, of corn and soybean pricing is the extreme variability in prices, not only across years, but within years. The first is a narrow focus on market timing (attempting to beat the market) that ignores the potential implications of market efficiency concepts (Brorsen and Anderson, 1994; Zulauf and Irwin, 1998). In general, these contracts price a fixed number of bushels according to pre-determined rules.
One method of defining the pricing window for a crop farmer is the period extending from the initial production planning time until the end of the storage season. The traditional approach is to develop a plan for the timing of pricing decisions and pair this with the selection of a pricing tool (spot cash sales, cash forward contract, futures, options, or hybrid cash contract). It is generally recommended that investment portfolios be diversified across types of investment products (stocks, bonds, real estate, retirement accounts, etc.). At the same time, recognizing that marketing discipline is a problem, the proportions are also weighted heavily towards externally-managed strategies (75%). However, since the producer is a disciplined marketer, the proportions are tilted toward self-directed strategies (70%).
Net price received should be a weighted-average across bushels priced and adjusted for storage costs and government program benefits.
It is similar to the oft recommended strategy of diversifying one's investments across different types of investment products. Diversification across the four cells of the pricing matrix would likely improve marketing performance for these producers. In fact, traffic congestion has expanded beyond traditional peak travel periods into a problem that has the potential to disrupt travel and commerce drastically at any time throughout the day.
High construction costs, constrained rights-of-way, and environmental factors are pushing agencies to explore other alternatives, including managed lanes, to mitigate the detrimental effects of congestion while optimizing the use of limited public funding. To some, the phrase refers only to high-occupancy toll (HOT) lanes, which are facilities that combine pricing and vehicle eligibility to maintain free-flow conditions while still providing a travel time-savings incentive for high-occupant vehicles. The lanes or facilities that apply only one operational strategy appear on the left half of the diagram, including value-priced and toll lanes, HOV lanes, and express lanes. Revenue also may be generated when one of the operational strategies involves pricing, where a toll is charged to a specific group of vehicles that would not otherwise have been eligible to use a managed lane if it was being operated as only an HOV lane. The reversible-flow HOV lanes on I-95 in northern Virginia, for example, demonstrate the potential to carry a significantly larger number of people in a smaller number of vehicles. These conditions can develop and evolve over time, or they may occur at any time when incidents temporarily increase traffic demand or reduce roadway capacity. During offpeak travel periods, the Washington State DOT has found HOV lanes to be a viable operational strategy.
Even after HOV lanes are installed, changes may occur in land use, the kinds of trips people take, the times people travel, and the levels of traffic congestion that may exist along a freeway corridor.
Both users and nonusers felt that the most effective way to reduce existing and future congestion on I-15 was to add additional HOT lanes.
However, during other times of the day, the opportunity may exist for other types of vehicles to use these lanes, based on the available roadway capacity.
When the demand to use HOV lanes exceeded capacity, agencies traditionally either expanded the number of lanes or increased the occupancy level required for vehicles to use the lanes to maintain free flowing traffic conditions. HOV lanes alone do not qualify as managed lanes, but when coupled with another operational strategy (such as pricing), or if real-time changes are made in their operation in response to changing conditions, then they would be considered a managed lane. Department of Transportation's Value Pricing Pilot Program encourages the use of value pricing in the form of new tolls on existing toll-free facilities (such as HOT lanes), variable tolls on new lanes, variable tolls on toll facilities, and usage-based vehicle charges.
These lanes would enable shippers to stay on schedule, reduce operating costs, bypass local traffic, and meet freight deadlines. Although many of these challenges appear to be similar to what agencies may have encountered previously with HOV lanes, managed lanes present many new and complex issues that will require information and answers. For that reason, they are a key strategy that agencies and highway officials can use to improve safety and mitigate the impacts of congestion efficiently and effectively. Then they go home and continue right along with the same prices as before, wondering how they could possibly raise their prices to experience the same type of success. While selling low may get your in the door at more places, you may be able to make just as much or more money, serving less clients at a higher price.


Futures contracts, and therefore forward pricing opportunities, currently are available four years into the future. While considerable resources, both public and private, have been devoted to improving pricing decisions based on this approach, producers remain very frustrated by the decision-making process.
In basic terms, market efficiency implies that the current price structure reflects all known information, and therefore, the only way to beat the market is to possess information not available to the market or to have superior analytical skills. To date, efforts have not been conducted to take full advantage of these new innovations in developing appropriate portfolios of pricing strategies. A sounder approach is to define a pricing philosophy, or approach to pricing, that includes a portfolio of self-directed and externally-managed pricing strategies. In addition, it is generally recommended that investments within a particular product be further diversified. The following examples help further demonstrate how the pricing matrix approach could be applied by individual producers. Memory and impressions regarding pricing performance are prone to hindsight bias (tendency to remember only the good or bad decisions depending on one's personality). Professional benchmarks measure the price received by professional market advisory services.
The emphasis here is on strategy and not on the implementation of specific pricing decisions (pricing tool, timing, etc.). In addition, diversification would more than likely reduce the risk and frustration of making corn and soybean pricing decisions for most producers. The consideration and use of managed lanes is growing rapidly in major metropolitan areas as an innovative and cost-effective approach to address congestion within urban freeway corridors.
Other agencies use a broader definition that may include high-occupancy vehicle (HOV) lanes, priced lanes, HOT lanes, and special use lanes (such as express, bus-only, or truck-only lanes). HOT lanes, which involve both pricing and vehicle eligibility strategies, fall in the middle of the diagram. A study performed in the Seattle area on weekend use of HOV lanes showed that the average number of people in each car was higher than expected, as 30 to 60 percent of the traffic was eligible to use HOV lanes. Respondents preferred this option over adding regular lanes—37 percent for HOT lanes versus 26 percent for regular lanes. The National Research Council's HOV Systems Manual (NCHRP Report 414) states that HOV lanes are viable when the HOV-eligible traffic ranges from 400 to 600 vehicles per hour. As traffic and roadway conditions change throughout the day, agencies can modify the occupancy level established for vehicles to use a managed lane for free along with the fee that is charged to vehicles that would not otherwise be able to use the HOT lane. Although some applications of managed lanes are more developed than others, as the transportation community finds new ways to combine various lane strategies, more innovations are likely to surface in the future. Like providers of other service offerings and specialized skill-sets, technical professionals often undervalue the real value of their skills and capabilities. The second is a lack of differentiation of pricing strategies based on the skills, characteristics, and beliefs of individual producers. A portfolio approach to making pricing decisions has the potential to make a very significant, positive impact on the marketing performance of producers. If a producer believes that cash, futures, and options markets are efficient in the sense of fully reflecting available information, then that producer generally should follow mechanical pricing strategies that assume it is impossible to beat the market. All benchmarks should be computed using the same basic assumptions applied to the pricing track record for each allocation. Implementation of pricing decisions within a cell of the pricing matrix will be impacted by a variety of factors, including crop insurance selections and government program payments. A managed lane, which involves the proactive (real-time) implementation and management of operational strategies in response to changing conditions, appears on the right half of the diagram. The DOT reported that when congestion occurred during the weekends, more vehicles used the HOV lanes. This is in comparison to the maximum vehicle carrying capacity of an HOV lane, which may vary from 1,200 to 1,800 vehicles per hour per lane. These decisions and operational changes will directly influence travel demand and performance on both the managed lane and the adjoining general purpose travel lanes.
Prior to this appointment, he served as manager of the freeway management program located in the Office of Transportation Management within the FHWA Office of Operations. As the weeks passed he kept increasing the price of the service, higher and higher, until his company was charging twice as much as the competition. IT professionals fall victim to choosing a price that they think will be agreeable to the customer instead of a price that fairly represents the worth of their skills and the solutions they are offering. Discounting them in an effort to please customers or fit in with the competition rarely works out well in the long run.
If you never have a prospect tell you that your offering is too expensive, then you are leaving money on the table with your existing customers.
You can look at your competition as a starting point but again, you need to figure your own overhead and optional margins for your service.
Even limiting the pricing window to a few months before harvest through the summer after harvest, price-determining factors can and often do change dramatically, making the decision about when and how much of the crop to price extremely difficult. Not only is there significant potential to improve pricing performance, particularly for the chronic poor performers, but there is opportunity to reduce price risk for individual producers and to reduce the level of frustration associated with crop pricing. The same window lengths are used in AgMAS performance evaluations of market advisory services. An investor can also diversify across investment approaches by devoting some funds to buy-and-hold strategies and other funds to strategies that actively time purchases and sales to take advantage of price movements. Producers who believe markets are efficient should follow active pricing strategies only if they possess information not available to the market or have superior analytical skills. Comparison of net prices received across allocations and to external benchmarks will provide an objective evaluation of performance and suggest adjustments to portfolio allocations.
In that capacity, he focused on freeway management systems, traffic management systems, and high-occupancy vehicle and managed lane systems. If a producer believes that cash, futures, and options markets are inefficient, then active strategies that attempt to beat the market will be preferred. At that point, agencies could implement tolls for HOV2s and SOVs to maintain free flow and maximize use of the lanes. In fact, after reviewing his account notes Kyle could not find a single example of a prospect that decided against the service because it was too expensive. Seasonal patterns since 1973 suggest the optimal pricing window for corn and soybeans in Illinois may run from April before harvest to May after harvest (Irwin et al., 2006). Risk-averse producers with high debt will prefer mechanical strategies that are likely less risky than active strategies, and vice versa. On average, there have been large price penalties for holding crops into the summer after harvest.
Finally, producers with poor pricing skills will prefer mechanical strategies and producers with good pricing skills will prefer active strategies.



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