Quote:
Originally Posted by Ryan Caldwell
The "$10" of materials is only a small part, figure another $2 for automated mixing and stamping of pills. so that leaves $388 of profit? Nope there is probly $13 for profit and 375 to re invest into research. as we all know doing something for the first time can be costly.
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Usually technology has a way of being excessively expensive for the consumer at first because the price is set at 'what the market can bear'. This is so that R&D costs are recouped quickly, as the price tends to decrease over time due to newer technologies that decrease demand for the current technology, better production methods, and 'innovations' in how the consumer pays (such as lower up front cost and higher monthly payments for service that subsidize the product cost). Then, when a newer technology idea comes around, usually corporations use their Capital holdings (aka money from stock sales) to fund the R&D for that idea. Case and point: the iPhone. Another case and point: the current way loans are recouped ... it's not 'technology' but it uses the same model -- your payments go more torwards interest than principal at the beginning of the loan so the bank recoups the overhead and risk costs of the loan quickly.
...this is also why the banks have no problem taking away a house 20 years into a loan just because of temporary life changes that cause a family to miss 3 payments...but that's another argument for another day...
Nothing like this model appears to exist in the healthcare industry, yet we all are aware that insurance and pharmaceutical companies utilize the stock market just like every other industry.
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26-08-2009, 09:26
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