1 Comment

Andrew:

I have many years in supply chain and determining the costs of componentry and products. I did the cost-modeling based upon how the product/part was made. I also was in Purchasing. If one does not know and understand the makeup of the costs, how do you determine a price, or set fair compensation?

From my own perspective, this is what is missing in setting compensation.

One of the European countries having national healthcare was concerned about their proposal based upon the standards they were setting and that it was too low and might be rejected. It has been a while and I forgot which one. My understanding and cost modeling of parts allowed me to establish a base and then ask questions of what I was missing.

I did one time scrap out several million tablets in inventory (when I was in healthcare supply) worth multiple times more than the tablets scrap value. I did we are looking for a price with knowing the components of the price.

Good word "rapacious." I like that. Great post Andrew.

Expand full comment