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Oct 08 2012

A Few Good Reads (10/8/12): Flooding in Pakistan and Decaying Infrastructure

This week: Flooding in Pakistan kills over 400, great pictures of hurricanes and typhoons around the world, decaying infrastructure (including levees), and developing service and pricing options (value pricing continued).

Hundreds killed in Pakistan flooding (CNN)

Floods resulting from monsoon rains have killed 422 people and left nearly 3,000 injured across Pakistan, a disaster agency spokesman said Saturday.

Some 350,000 people have been forced from their homes and another 4.7 million people affected by the flooding since August 22, Ahmed Kamal of the National Disaster Management Authority said.

Hurricanes and Typhoons (Big Picture)

While only one major Hurricane, Isaac, struck the US this season so far, several powerful storms have ravaged Asia, with the east coast of China absorbing blows from three typhoons in one week.

 LEVEE.jpg

America’s levees, dams, navigation projects will decay without new money sources, report says (The Times-Picayune)

America’s vast network of levees, dams, navigation structures and hydroelectric power facilities will continue to decay if the president and Congress don’t find new ways to pay to for their maintenance and operation, and fail to prioritize new projects that are already approved, according to a new study released Thursday by the National Academy of Sciences’ National Research Council.

Study Says Corps Has Big Infrastructure Maintenance Problem (ENR)

The report, released on Oct. 4, says that the Corps’ sprawling network of river locks and dams and other civil works “is wearing out faster than it is being replaced or rehabilitated.” The system includes about 700 dams, 14,000 miles of federal levees and other structures along and within 12,000 miles of river channels.

Value Pricing: Step 3: Develop Service and Pricing Options (POB)

So how do you determine which services are part of which package? Each step up in price must be accompanied by an associated increase in value. This is one reason it is foolish to price “a survey.” You must first lay the ground work demonstrating the value of the different levels of service you can provide. Only then can you justify three pricing levels.

Clients must understand that achieving cost reductions mean compromising on value. Everyone wants to save money; few are willing to give up perks they view as “essential” to achieve those savings. As a case in point, how many cars without air conditioning are sold in the United States? The percentage is very small. Almost everyone gets air conditioning because they see the value for the extra money.

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