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Title: Up to how much are you willing to markup a product and still consider it moral? Post by: Sherwood_Archer on September 20, 2018, 10:57:37 AM Reading this https://www.cnn.com/2018/09/11/health/drug-price-hike-moral-requirement-bn/index.html made me think, what's the markup percentage do you think is just right? Personally, I think what this pharma exec is just pure bull and a 400% raising of the price is just way too much.
Title: Re: Up to how much are you willing to markup a product and still consider it moral? Post by: Coinblaze on September 20, 2018, 12:51:51 PM The problem is not with the price hikes but with the pesky things limiting competition like patents and lobbyists that ensure a monopoly. If people have buying choice then companies are free to charge with what they can get away with, but it's really unfair if people have no other choice but to pay a higher price.
As for this particular article, the sad truth is that it was the generic brand that raised their price, "because they could." Well, after all, they are a business, so I agree with that. The market determines the price. If there are no other competitors, then the price will be high. But hopefully the high price will attract more people to manufacture the generic drug, so the price will eventually go down. The real problem is the healthcare system in the US, I think everywhere else in the world the same drugs are really cheap, it's insane what pharma companies can get away with in the US. Title: Re: Up to how much are you willing to markup a product and still consider it moral? Post by: UconBit on September 20, 2018, 01:54:18 PM That is a very horrible person or should I say company. But to answer your question, it depends on the product that you are selling. Some small business owners that I know mark up their products to 200%. This is the reason why they can still give discounts of up to 50% and still make some money.
Title: Re: Up to how much are you willing to markup a product and still consider it moral? Post by: Sherwood_Archer on September 21, 2018, 12:40:25 PM The real problem is the healthcare system in the US, I think everywhere else in the world the same drugs are really cheap, it's insane what pharma companies can get away with in the US. Exactly this. I asked an Asian friend how much those kind of drugs are in their country and they said that it's really affordable compared to what we pay. It's mad. I would understand if the cost for manufacturing them is really high or if it is a cure for a very rare disease. It is not. So basically they are just cashing it in.Title: Re: Up to how much are you willing to markup a product and still consider it moral? Post by: Sherwood_Archer on September 21, 2018, 12:41:49 PM That is a very horrible person or should I say company. But to answer your question, it depends on the product that you are selling. Some small business owners that I know mark up their products to 200%. This is the reason why they can still give discounts of up to 50% and still make some money. I think that that is a reasonable markup. After all they spend in raw materials plus utilities plus rent and all the other things for their products plus the salary of their people, if any.Title: Re: Up to how much are you willing to markup a product and still consider it moral? Post by: raatnak on September 26, 2018, 09:08:36 AM If your company is the only one in your sphere - you make your rules. And I guess its fair from this companies side to make your product overpriced since people will buy it anyway.
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