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If you can make masks for 10c its not price gouging to sell it at a normal markup from those costs. Its not even "basically a backdoor form of raising prices" I
by lugged 7y ago
If you can make masks for 10c its not price gouging to sell it at a normal markup from those costs. Its not even "basically a backdoor form of raising prices" It's literally just what it costs.
Also, I highly doubt this guy is using 10 year contracts.
If I was him I would only be selling to those hospitals that sign 100 year contracts with strict non compete clauses and defined rules around sourcing / pricing and failures to comply.
- djyaz1200 7y agoTotally agree, he should accept orders from any org willing to sign a long term deal at his usual prices and run the factory 24/7.
- londons_explore 7y agoMost companies go bankrupt in a lot less than 100 years... In most cases, the full value of the contract would never be paid.
- Sabinus 7y agoIt would still solve the problem of companies not purchasing while they're solvent but not urgently needing masks.
- rch 7y ago> 100 year contracts with strict non compete clauses and defined rules around sourcing / pricing and failures to comply. Exactly. IIRC Sysco negotiates 50-99 year contracts with e.g. universities to supply on campus dining. It seems that firms in the healthcare supply chain would do the same.
- michaelt 7y agoInteresting. What does a customer do, in a 50-year contract, if the level of service drops or the product becomes obsolete?