Sunday, January 15, 2017

The Art of Pricing


Some discussion about obtaining price discounting thru placing large orders rather than 'onesey-twosey' retail type orders.

Wholesaling is when a boutique or another reseller approaches you to purchase your items in bulk, usually expecting a discount for the large order. 
The expected discounts are between 30% and 60%, most often settling around 50%. These discounts are large,

Can this type of discounting result be expected in government purchases of healthcare?   Perhaps this is what Trump has in mind.

If he can achieve what is often 50% reduction in price paid through a similar process, then he may be able to operate within the targets in the current budgetary resolutions passed by the "out of money!" morons and still expand government individual subsidies.

Etsy Sellers Handbook
The Art of Pricing: Preparing for Wholesaling


16 comments:

Penguin pop said...

I actually don't think that would be such a bad idea if the goal is to get as much stuff past McConnell, Ryan and Mulvaney as possible in the same way Trump wanted to go about the public-private partnership deals and not submitting a budget for the year. The dummies like Ben Shapiro might still cry foul though. Any subsidy like this is "CRONY CAPITALISM!" to them. I am also assuming this could be expanded later when the fiscal hawks are out of power.

Matt Franko said...

" if the goal is to get as much stuff past (insert name of moron here)..."

Yeah this is what might turn out...

I was hoping for a big war between Trump and all the Peterson morons but maybe he avoids this if he can re-work the acquisition strategy and get a 50% reduction... too bad...

Noah Way said...

Bogus assumption. Cost reductions in manufacturing achieved through amortization of equipment, bulk purchase of materials, etc. do not apply to services and labor.

There are many, many, many things that could be done to reduce health care costs and dramatically improve quality of care that won't because so many are profiting so handsomely on people's health and well-being.

Matt Franko said...

Maybe they do if a lot of what they are doing now is to increase the average invoice total which is comprised of both services and supplies...

and btw businesses make MORE on large orders...

So this from the left: "won't because so many are profiting so handsomely " is all BS...

Yo... they will make MORE MONEY on large orders... so too bad for the left if they think people in healthcare are making too much munnie, if we get the prices down, hate to break the news to you but they will make EVEN MORE MUNNIE....

Look at the epi pen situation... no large orders so the rentiers move right in on that type of action... they cant help themselves... now the business in epi pens is all F-ed...

What to you think if they sell one thing at a 800% mark up they think it not better to sell QTY 1M at 5% markup?

Its not about your margins its about how much munnie you can make on the deal...

To them, "its about quantity not price..."

Matt Franko said...

"Hey Moe, this guy wants to buy one of our widgets for $1000 and it only costs us $100 to make... and this other guy wants to buy 1,000 of them but he only wants to pay $500...

"Let's take the first guy's deal Curly... let's go tell Larry!"....

C'mon....

Noah Way said...

The way commodities markets work, Goldman Sachs makes money every time somebody buys a bottle of ketchup. There are so many hands in the pie that there is virtually nothing left for the consumer to eat.

Matt Franko said...

"nothing left for the consumer to eat."

Oh please we throw out about as much as we eat:

https://www.nrdc.org/sites/default/files/wasted-food-IP.pdf

We are in a permanent underlying surplus condition.... its all a price and distribution problem.... and govt acquisition strategy matters....

You lefties have to choose between whether you want a highly functional system or whether you want to prevent the materialists from making munnie...

Bob said...

Matt, that was a figure of speech.

Steve D said...

contrary to your wacked out inability to comprehend, Way is talking about rents and not about food deprivation...you're too busy making stupid assumptions about lefties to get it, eh?

Greg said...

@Noah

"There are many, many, many things that could be done to reduce health care costs and dramatically improve quality of care that won't because so many are profiting so handsomely on people's health and well-being."


I'd like to make one correction to your comment. The handsome profiting is off peoples illness, not health and well being. We dont provide health care, we provide disaster care. We are not making efforts to keep people healthy we are waiting til they are near death and "saving" them. Bunch of hero complexes.
I know cuz I see it every fucking day.

We can charge a lot for saving a life. For getting someone to quit smoking and exercise more we make nothing to speak of.

and Matt

Your comment doesn't apply to health care. There are not many situations to be able to take advantage of the volume pricing at the levels you suggest.
No hospitals will pay to store numerous prostheses/equipment or drugs that might expire. The govt still has to use hospitals to distribute the care it pays for.

Matt Franko said...

"figure of speech"

Well it's not a very good one is it?

And it's stupid too as it assumes there is a fixed amount of munnie and "Goldman Sachs!" is getting too much of the fixed amounts..

Left can't understand MMT....they're too political.....

Bob said...

I thought you didn't like rent extractors...

Bob said...

@Greg

Exactly.

Footsoldier said...

Matt,

How are German exporters keeping their market share to the UK as the £ keeps falling
and they continue to raise their prices ?

Are they taking job losses instead of cutting prices ?

Or are they slashing prices in the Eurozone to make up for it as we saw with Mercedes slashing their prices in Ireland last week ?


As the £ keeps on falling I would have thought we would have seen German exporters cutting their prices to the UK to keep their market share.

Or at lest have seen some job losses.

But neither seems to be the case when you look at the data coming out of Germany ?

Footsoldier said...

Also,

Why are UK exporters not increasing their prices?


You would have thought this is the time to make hay when the sun is shining.

Noah Way said...

@Matt: The assumption of "a fixed amount" of anything was yours, not mine.

Except for the reality of my health care being severely rationed by my (1) insurance and (2) my wallet because of my insurance.