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You're getting too tied up into the specifics. I don't think you need to believe that the price of an Epipen should be $30 to see the point about price gouging.

You're getting too tied up into the specifics. I don't think you need to believe that the price of an Epipen should be $30 to see the point about price gouging. If you really wanted a better estimate of costs, you should look at costs around wages, etc... as you indicate, as well as the cost reduction that comes from improved manufacturing processes. The central issue though is not about the specific price, it's about looking at the point when profit evolves into price gouging. It's not something that can be quantified precisely, but it's fairly clear that we're far from an 'optimised' price for this product, and we'll probably only get to that price with effective competition.

eggy 10y ago
No, I actually agreed with the gist of the article. And I do think the group has brought a greedy company to task. I was speaking to financial illiteracy, and perhaps I didn't communicate it too well. I know costing well, and I even had a truly innovative, potential Medicaid device to aid blind people in walking unassisted by canes, or canines way back in 1995. I am not sure how cheap an Epipen can be made at a sufficient profit for a company to either take it on as their only product, or as a horizontal or vertical market offshoot of their existing business without looking at the numbers. I strongly suspect it is far from $30 if it is to be made and sold at sufficient profit and not charity work, or a device of the Theranos/Elizabeth Holmes kind. I was pointing at the over-simplified, short title as possibly another misleading example of what things truly cost to make to have a final price at $60 or $150 when there is more involved than cost of materials whether bought in quantity for a prototype or discounted in bulk. Did any of the lines at the bottom of my post ring with you? I only ask, since I am an experienced senior manager with a very eclectic skill set, and I have heard them from the young to the old and experienced, and I am still amazed when I hear them.
- ZenoArrow 10y ago
  Ah, fair enough, my misunderstanding. As for your points about people misunderstanding costs, I've no doubt it happens sometimes.

eggy 10y ago

No, I actually agreed with the gist of the article. And I do think the group has brought a greedy company to task. I was speaking to financial illiteracy, and perhaps I didn't communicate it too well. I know costing well, and I even had a truly innovative, potential Medicaid device to aid blind people in walking unassisted by canes, or canines way back in 1995. I am not sure how cheap an Epipen can be made at a sufficient profit for a company to either take it on as their only product, or as a horizontal or vertical market offshoot of their existing business without looking at the numbers. I strongly suspect it is far from $30 if it is to be made and sold at sufficient profit and not charity work, or a device of the Theranos/Elizabeth Holmes kind. I was pointing at the over-simplified, short title as possibly another misleading example of what things truly cost to make to have a final price at $60 or $150 when there is more involved than cost of materials whether bought in quantity for a prototype or discounted in bulk. Did any of the lines at the bottom of my post ring with you? I only ask, since I am an experienced senior manager with a very eclectic skill set, and I have heard them from the young to the old and experienced, and I am still amazed when I hear them.

ZenoArrow 10y ago
Ah, fair enough, my misunderstanding. As for your points about people misunderstanding costs, I've no doubt it happens sometimes.