The little plastic lever that actuates the water dispenser on the refrigerator, broke. Of course, this little device is not necessary for the operation of the refrigerator itself, but it is nice to have. Instead of incurring a service call that I assumed would be more expensive than the item, I decided to take care of it myself. As in most experiences, this precipitated a learning chain.
First, I needed the part. Looking online revealed a price ranging from $80 to $120. Eighty to one-hundred and twenty dollars! There must be some mistake. What I wanted was only a little piece of plastic. Nope! After looking everywhere, the conclusion: the little piece of plastic with a little light embedded, shipped, would be at least $100.
How fair was that price? What did it cost to make the item? Raw material, development, labor, etc. all cost. However, in my wildest dreams, I could not come up with a price approaching the ones quoted. I also noticed that the little tray at the bottom of the water dispenser cost $25.00 to replace. It is a stamped, plastic piece. But the experience did not stop there.
We needed a rack for the top of the vehicle. The price of a carrier rack – two bars running parallel – was over $200. Simple math says that is a hundred dollars each bar! And, if you want crossbars or have it installed, the cost goes up.
Nor, is this price problem relegated to “things.” Services jump in next.
The bill for an MRI was $1120.00. However, because the individual had insurance, the cost was dropped to $444.53. Without that adjustment, the bill for someone who could not afford insurance was the total $1120.00, or $675.47 more than for the person who had insurance.
Does an MRI really cost less to use on a person with insurance and more to administer to a non-insured?
Of course, it is easy to throw rocks. However, ethical business practices and pricing should be built around some important questions: (1) How much does the item cost to produce or the service complexity require? (2) What is a fair percentage of profit? (3) Is the price fair for everyone?
There are laws that protect consumers from gross price manipulation. However, everything cannot be legislated. It is important that organizations and individuals operate using moral and ethical practices. The old “do unto others as you would have them do unto you” could be a nice addition to the organization’s policy book.
First, I needed the part. Looking online revealed a price ranging from $80 to $120. Eighty to one-hundred and twenty dollars! There must be some mistake. What I wanted was only a little piece of plastic. Nope! After looking everywhere, the conclusion: the little piece of plastic with a little light embedded, shipped, would be at least $100.
How fair was that price? What did it cost to make the item? Raw material, development, labor, etc. all cost. However, in my wildest dreams, I could not come up with a price approaching the ones quoted. I also noticed that the little tray at the bottom of the water dispenser cost $25.00 to replace. It is a stamped, plastic piece. But the experience did not stop there.
We needed a rack for the top of the vehicle. The price of a carrier rack – two bars running parallel – was over $200. Simple math says that is a hundred dollars each bar! And, if you want crossbars or have it installed, the cost goes up.
Nor, is this price problem relegated to “things.” Services jump in next.
The bill for an MRI was $1120.00. However, because the individual had insurance, the cost was dropped to $444.53. Without that adjustment, the bill for someone who could not afford insurance was the total $1120.00, or $675.47 more than for the person who had insurance.
Does an MRI really cost less to use on a person with insurance and more to administer to a non-insured?
Of course, it is easy to throw rocks. However, ethical business practices and pricing should be built around some important questions: (1) How much does the item cost to produce or the service complexity require? (2) What is a fair percentage of profit? (3) Is the price fair for everyone?
There are laws that protect consumers from gross price manipulation. However, everything cannot be legislated. It is important that organizations and individuals operate using moral and ethical practices. The old “do unto others as you would have them do unto you” could be a nice addition to the organization’s policy book.
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