| Author: | Hanchate, A. |
| Title: | Nonprofit pricing of services under cost uncertainty |
| Journal: | Journal of Cultural Economics
1996 : VOL. 20:2, p. 133-144 |
| Index terms: | UNCERTAINTY NON-PROFIT ORGANIZATIONS ART |
| Language: | eng |
| Abstract: | For a nonprofit organization that provides individualized services to different customers a natural rule is at-cost pricing -- to cover for labor, administrative and other expenses incurred in providing the service to each customer. This not only accomplishes zero profits (losses) but also zero cross-subsidization across customers. But if costs can not be predicted before the completion of a service, and estimates are used in obtaining such service contracts, then what should be the pricing strategy? |
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