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.
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.
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.
During the second month of the year, the Consumer Price Index registered a 3.99% year-on-year variation, a rise that was determined in part by the behavior of the prices of education services, hotels and restaurants.
From the Central Bank of Honduras report:
The monthly behavior of the CPI was determined by the contribution of the item "Education" with 0.51 percentage points (pp), together with the items "Recreation and Culture" and "Hotels, Cafes and Restaurants" with 0.04 pp, each. On the contrary, "Transportation" contributed -0.18 pp to the monthly inflation.
After the inflationary rhythm went from 3.8% to 4.1% between November and December 2019, during January 2020 the year-on-year CPI was 4.3%.
In the first month of 2020, the monthly variation of the Consumer Price Index (CPI) was 0.24% (0.03% in January 2019), an increase driven by the rise in the price of services related to housing, some food and recreational and cultural items and services.
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.
The variation in the price of some foods of agricultural origin, transport and health, determined the 4.08% year-on-year increase in the CPI reported in December last year.
In December 2019, the Consumer Price Index (CPI) showed a 0.42% variation (0.19% in December 2018), reflecting the price increase in some foods of agricultural origin, transport and health.
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.
During November, the CPI in Honduras registered a 3.8% variation with respect to the same month in 2018, an inflationary rhythm lower than the 4.1% rate reported in October.
The monthly variation of the Consumer Price Index (CPI) was 0.30% in November 2019, lower than that recorded in the same month of 2018 and 2017 (0.53% and 0.49%, in order), the increase in the index reflects the rise in prices in some food products and fuels, reported the Central Bank of Honduras (BCH).
Last month FAO's food price index rose 10% from November 2018, explained by rising prices of meat, dairy products and vegetable oils.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged 177.2 points in November 2019; up 4.7 points (2.7 percent) from October and 15.4 points (9.5 percent) from the corresponding period last year.
During October 2019, the CPI registered a 4.1% variation with respect to the same month in 2018, an inflation rate that is lower than the 4.4% reported in September.
In October 2019, monthly inflation -measured through the variation of the Consumer Price Index (CPI)- was 0.24%, lower than the registered in October 2018 (0.56%). The monthly result is mainly the result of the increase in the price of some food products and fuel, informed the Central Bank of Honduras.
In the tenth month of the year, the FAO food price index rose 6% from October 2018, explained by rising prices of sugar, meat, dairy products and vegetable oils.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged 172.7 points in October 2019, up 1.7 percent (3 points) from September and 6.0 percent higher than in the corresponding period last year.
During the ninth month of the year, the CPI registered a 4.4% variation with respect to September 2018, being health services and housing rentals, the items that registered the most important increases.
In September 2019, monthly inflation -measured through the variation of the Consumer Price Index (CPI)- was 0.15%. The Central Bank of Honduras reported that the above is explained by the increase in the prices of rental housing and some services for its maintenance, medicines and health services, counteracted by the reduction in the prices of fuels and some food products.
In the ninth month of the year, the FAO food price index increased by 3% compared to September 2018, explained by the rise in the prices of sugar, meat, dairy products and vegetable oils.
From FAO's monthly report:
» The FAO Food Price Index* (FFPI) averaged nearly 170 points in September 2019, unchanged from August but 3.3 percent higher than in the corresponding period last year.