The High Cost of Staying Alive
Aug 29, 2016 12:52:01 #
Tom467
Loc: North Central Florida
Jerry, check out the price for Acthar, a drug developed back around 1952. Acthar cost $35,000.00 for 5cc.
Sep 3, 2016 05:06:56 #
2Dragons wrote:
I have never been in business so I have no idea what the average markup over cost is made to maintain a decent profit margin, but if all it takes is $1 to produce this product, what would the price be under normal circumstances with a company president who has a conscience in her brain instead of an abacus? 
in the mid 50's cost +10% was a rule of thumb so I would guess $1.10
Sep 3, 2016 10:57:57 #
Big Bill
Loc: Phoenix, AZ
oregon don wrote:
in the mid 50's cost +10% was a rule of thumb so I would guess $1.10
It's my understanding that a profit to the owners of about 6% is reasonable.
Cost is something that's calculated in several different ways, depending on the view of the person calculating it.
There's the total cost, which includes all research and development, parts, labor, taxes, insurance, human resources, and plant costs; everything that goes into the final product. That's usually the way the manufacturer looks at costs.
The other extreme is the cost of the physical parts that make up the finished product only. This is often how the consumer looks at costs. (We often hear this at restaurants; "How can chicken cost this much? It's chicken, for God's sake!")
Even for profit, there's gross profit, and net profit.
It's not an easy subject.
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