Ariel Banos, expert in pricing strategy, presents in this article a key aspect to consider when quoting proposals for professional services.
"... In his book "Pricing Creativity", Blair Enns exemplifies the big differences there can be in the price of professional work, using the cases of some famous logos.
In 1971, in the early days of his company, Nike CEO Phil Knight paid a design student named Carolyn Davidson the sum of US$ 35 (about US$ 200 at today's values) to create the "swoosh" logo. We are talking about the mythical logo that still identifies the Nike brand today.
Fifteen months after the beginning of the health and economic crisis, Guatemala, Honduras and Nicaragua are the economies in the region with the highest inflation rates, a behavior that was influenced by increases in fuel and transportation costs.
In the second quarter of 2020, a period in which the countries of the region were going through a severe economic crisis caused by the Covid-19 outbreak, inflation levels were low and in some economies negative variations were reported.
Between December 2020 and May 2021, the average cost of airline tickets in Costa Rica increased 18%, a variation that is explained by the increase in fuel prices and the depreciation of the local currency.
One of the sectors with the highest contribution to the variation of the Consumer Price Index (CPI) in May was Transportation. According to the National Institute of Statistics and Census (INEC), gasoline, airline tickets and tourist packages abroad were among the main items with the greatest positive effect on the price level.
In Costa Rica, since July 2020 the producer price index for the manufacturing sector started to report increases, a situation that could lead to a rise in sales prices and simultaneously to a fall in the quantity of products traded.
Between December 2019 and June 2020, the producer price index for the manufacturing sector (IPP-MAN) reported negative year-on-year variations.
In September, price increases were more pronounced for vegetable oils and cereals, and for dairy products prices remained stable, while sugar and meat prices fell from their August levels.
The United Nations Food and Agriculture Organization (FAO) reported that in September 2020 the food price index averaged 97.9 points, i.e., 2% more than in August and already 4.6% above its value a year ago.
In Costa Rica, the price indexes of buildings and social housing registered in the seventh month of the year, year-on-year variations of -1.07% and -0.81%, respectively.
From the report of the National Institute of Statistics and Census:
The construction price indexes based on February 2012 are a set of twenty statistical indicators, which measure the variation in the prices of materials used in the construction of different types of works.
Explained by the uncertainty reported in the markets due to covid-19 disease, in June 2020 the global food price index registered a 2% variation from the previous month.
The Food and Agriculture Organization of the United Nations (FAO) reported that due to market uncertainty caused by covid-19 disease, prices of vegetable oils, sugar and dairy products rebounded to their highest level in several months after sharp declines in May, while in the cereals and meat markets most prices came under downward pressure.
In Costa Rica, the price indexes of buildings and social housing registered in the second month of the year, year-on-year variations of -0.90% and -0.89%, respectively.
From the report of the National Institute of Statistics and Census:
The construction price indexes based on February 2012 are a set of twenty statistical indicators, which measure the variation in the prices of materials used in the construction of different types of works.
In the second month of the year the CPI registered a 1.79% year-on-year variation, an inflationary rhythm that exceeds the 1.58% reported in January.
Of the 315 goods and services that make up the consumption basket, 50% increased in price, 41% decreased in price and 9% presented no variation, informed the National Institute of Statistics and Census.
In Costa Rica, the building and social housing price indexes recorded year-on-year changes of -0.87% and -0.48%, respectively, in January of this year.
From the report of the National Institute of Statistics and Census:
The construction price indexes based on February 2012 are a set of twenty statistical indicators, which measure the variation in the prices of materials used in the construction of different types of works.
During January, the Consumer Price Index registered a 1.58% year-on-year variation, a rise that was influenced by the increase in the prices of Rent and housing services, and Education.
Out of the 315 goods and services that make up the consumer basket, 48% increased in price, 44% decreased in price and 8% showed no variation, reported the National Institute of Statistics and Census.
Up to January this year, the FAO food price index rose by 11% compared to the same month in 2019, explained by the increase in the prices of meat, dairy products, vegetable oils and sugar.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged 182.5 points in January 2020, up 1.3 points (0.7 percent) from December 2019 and 11.3 percent higher than the same month last year.
In Costa Rica, the price indexes of buildings and social interest housing registered in December of last year, year-on-year variations of -1.03% and -0.53%, respectively.
From the National Institute of Statistics and Census statement:
The construction price indexes based on February 2012 are a set of twenty statistical indicators, which measure the variation in the prices of materials used in the construction of different types of works.
As of December last year, the FAO food price index was up 13% over the same month in 2018, explained by rising prices of meat, dairy products, vegetable oils and sugar.
From the monthly report of the FAO:
» The FAO Food Price Index* (FFPI) averaged 181.7 points in December 2019, up 4.4 points (2.5 percent) from November, marking the third month of consecutive increase.
After the Consumer Price Index reported a 2.03% year-on-year variation at the end of 2018, in December 2019 the inflationary rhythm dropped to 1.52%.
The groups with greater contribution to the variation of the CPI in December 2019 were: Food and non-alcoholic beverages and Transportation, reported the National Institute of Statistics and Census (INEC).