Saving on power

There are 13 comments on the TwinCities.com story from Mar 9, 2010, titled Saving on power. In it, TwinCities.com reports that:

During the 1970s, I was the division general manager of manufacturing in a major corporation.

Join the discussion below, or Read more at TwinCities.com.

Observer

Minneapolis, MN

#1 Mar 9, 2010
The issue of health care and GAMC are really symptoms of a larger problem...

http://www.examiner.com/x-36867-Minneapolis-E...
Pablo Rodriguez

Edison, NJ

#2 Mar 9, 2010
B. H. Bentson

I have 2 comments on your letter. First, on the markups from cost to retail:
these markups are usually figured on costs of components and do not include
the costs of developing the product. These development costs also have to be
included in the final cost of the product. Also, don't forget about the
costs to market the product and support the product. Just because you think
the markups are excessive doesn't mean that any price fixing is involved.
Price fixing is something else entirely, namely agreements between companies
that sell the same (or similar) products to not sell below a certain price.

Secondly, manufacturers of iPods, GPS systems, cell phones, etc, amortize
their development costs over millions of units, which can reduce the development
cost per unit to a couple dollars. On the other hand, manufacturers of devices
like hearing aids must amortize their development costs over only thousands of
units, leading to a cost per unit of thousands of dollars. There are legitimate
reasons for the price differential between these different types of products.

“We're all connected”

Since: Feb 08

St Paul, MN

#3 Mar 9, 2010
Robert Olson: Does the cost of nuclear you wrote about in your letter include building/start up costs and decommissioning of the power plant? If not, why not?
Bob in the Grove

Cottage Grove, MN

#4 Mar 9, 2010
Pablo Rodriguez wrote:
B. H. Bentson
I have 2 comments on your letter. First, on the markups from cost to retail:
these markups are usually figured on costs of components and do not include
the costs of developing the product. These development costs also have to be
included in the final cost of the product. Also, don't forget about the
costs to market the product and support the product. Just because you think
the markups are excessive doesn't mean that any price fixing is involved.
Price fixing is something else entirely, namely agreements between companies
that sell the same (or similar) products to not sell below a certain price.
Secondly, manufacturers of iPods, GPS systems, cell phones, etc, amortize
their development costs over millions of units, which can reduce the development
cost per unit to a couple dollars. On the other hand, manufacturers of devices
like hearing aids must amortize their development costs over only thousands of
units, leading to a cost per unit of thousands of dollars. There are legitimate
reasons for the price differential between these different types of products.
I would add, and this is mere speculation, that another factor is third party involvement. If I want an ipod I pay for it out of pocket. Hearing aids may be (are?) covered by insurance, meaning that you will see price increases as you almost always do whenever a third party is involved.

Since: Mar 08

Location hidden

#5 Mar 9, 2010
B.H. Bentson, Inver Grove Heights, those evil fat cat hearing aid corporations. Let's take them down!

“We're all connected”

Since: Feb 08

St Paul, MN

#6 Mar 9, 2010
Hey, negative graffiti taggers, I'm not anti-nuclear. I just want the whole picture. Please let me know what you disagree with my post for if you tagged it.
Marge Cullen

Minneapolis, MN

#7 Mar 9, 2010
Robert Olson, Pequot Lakes

And where do we store the radio active waste Robert?$800 saving a year to fill the earth with radio active waste. What a deal. I know you can store it on the Indian Reservations right?
Gndydncr

Minneapolis, MN

#8 Mar 9, 2010
Marge Cullen wrote:
Robert Olson, Pequot Lakes
And where do we store the radio active waste Robert?$800 saving a year to fill the earth with radio active waste. What a deal. I know you can store it on the Indian Reservations right?
Whenever the discussion regarding national health care arrises, somebody is bound to point out how great countries of Europe are doing. How come these same people, when it comes to nuclear waste, are not pointing out how great countries of Europe are doing?
jgb

North Branch, MN

#9 Mar 10, 2010
Boob Olson- I worked for him in final test of large systems, we had engineers and reps of all all types come in the plant to work out details of installations and we would talk candidly about the nuclear power industry.
Many Europian countries have solved most of the problems that we had with the industry back in the 70's but because of the motitoriam we went to coal instead,which was a MISTAKE.
We now have an oppertunity to catch up if Obama follows through with his promise to lift the moritoriam.
jgb

North Branch, MN

#10 Mar 10, 2010
Ops-was supposed to be Bob Olson,sorry.
Gndydncr

Minneapolis, MN

#11 Mar 10, 2010
jgb wrote:
Ops-was supposed to be Bob Olson,sorry.
Freudian slip?
Wade Gustafson

Saint Paul, MN

#12 Mar 10, 2010
The reason iPods and GPS devices are so much cheaper than hearing aids is because there is a much bigger market for those items than there is for hearing aids for a mostly elderly population. Also, they charge that much for hearing aids because they can.
Gndydncr

Minneapolis, MN

#13 Mar 10, 2010
Wade Gustafson wrote:
The reason iPods and GPS devices are so much cheaper than hearing aids is because there is a much bigger market for those items than there is for hearing aids for a mostly elderly population. Also, they charge that much for hearing aids because they can.
Aren't hearing aids free? Do you mean somebody has to pay for them? I thought they were just provided by the insurance company or medicare.

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