4 ms·
That's kind of a softball, can easily be counted with "part costs vary a lot based on the market" or something like, regardless of cost we guarantee you this pr
by wordpad25 3y ago
That's kind of a softball, can easily be counted with "part costs vary a lot based on the market" or something like, regardless of cost we guarantee you this price point
No business wants to share it's internal costs, it's their prime competitive advantage
- nullindividual 3y agoWhen your only business is the Lazy B, you’re going to cooperate.
- aksss 3y agoIf the deal is big enough, it’s absolutely on the table. These are “cost plus” contracts. See Walmart and the federal government for examples of consumers that require these terms. Now, the federal government, particularly with drugs pricing, turns a blind eye towards the suppliers just jacking up the purported cost. E.g. Pharma:“we want to make $100 per pill, it costs us $5 to produce”. Fed: “we demand cost + 10%, because the people”. Pharma:”Fine, let’s say it costs $90 to produce.” Fed:”Where do I sign?” Whereas Walmart would say to somebody like Nabisco, “GFY; if you want your product on our shelves, you’ll open your books and give us audited cost + 10%”.
- deaddodo 3y agoTheir prime competitive advantage is their product and quality:cost ratio. For a product company, at least. If your business' primary competitive advantage is that it gets ICs for 1c less/per thousand, your business is built on shaky foundations. One that you would still want to disclose during negotiations ("yeah, our product is the exact same quality as Widget Co; but we've found a supply for some internal parts at slightly below market value").