From: Glen Bedel (GBedel@designforum.com)
Date: Tue Aug 26 2003 - 13:05:15 PDT
Most any business today figures out their cost to make something and
then marks it up.
Ex: you need to make one gear, it will cost your company $10 to make.
$10 + a 75% mark up = $17.50
We'll $17.50 won't pay the rent this week........ So in comes the 8x to
make sure Jr. has his braces paid for. So when you pay $140.00 for a $10
dollar gear your getting a bargain..... ;D
-----Original Message-----
From: Mark J. Blair [mailto:ke6myk_mvlist@sbcglobal.net]
Sent: Tuesday, August 26, 2003 3:53 PM
To: Military Vehicles Mailing List
Subject: Re: [MV] HMMWV v. idiots in government
Steve Grammont wrote:
> Like I said... if my company was to not receive assurances that our
> product would be kept within the military, fine. We could agree to
> that. But the government would then have to foot the bill for all the
> consumer sales we would lose through the arrangement. That means
> probably an 8 fold increase in what we charge the government.
I don't understand where the 8x multiplier comes from. It seems to me
that if
you sell one widget to the government, that's at most one widget that
you
wouldn't sell to another consumer, many years later, after the
government has
beaten the tar out of that widget and released its well-used remains in
a
surplus auction. Even with quantity discounts for a big government
purhcase
vs. a bunch of small civilian purchases, I don't see how an 8x price
multiplier is reasonably justified. I always thought that the "time
value of
money" worked the other way around, i.e. "give me $1 now for the $8 that
I
might not make 10 years from now", vs. "give me $8 now for the $1 that I
might
not make 10 years from now". But then, I'm just an engineer; I don't
understand economics.
-- Mark J. Blair, NF6X <ke6myk@sbcglobal.net> PGP 2.6.2 public key available from http://www.keyserver.net/ Web page: http://www.qsl.net/ke6myk/===Mil-Veh is a member-supported mailing list=== To unsubscribe, send e-mail to: <mil-veh-off@mil-veh.org> To switch to the DIGEST mode, send e-mail to <mil-veh-digest@mil-veh.org> To reach a human, contact <ack@mil-veh.org>
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