Re: [Phys-L] Personal Sound Amplifiers (PSA)

[Ze'ev Wurman <zeev@ieee.org>]

This is physics list so I do not expect many to understand much about 
economics.

The markup is an example of wealth transfer to those who make us all 
better off ... the inventors, the proselytizers of the invention, those 
who support the invention in he field, those who invest in bringing the 
technology to the market, to make it widely available.

Otherwise we would have nothing new in this marked since forever. Why 
would anyone invent, invest in manufacturing, sales, and support of that 
technology if there was no profit to be made?

And the initial comment about the "cost" is wrong-headed to begin with. 
High-end hearing aids typically come with lifetime service in terms of 
periodic adjustment. Professional fitting takes time and equipment. Just 
those two account for easily a few hundred dollars. Add the R&D cost 
that went into it, add the cost of setting up the manufacturing line -- 
not just the incremental cost of the chip inside -- and the cost of 
inventory.

If the prices were unreasonably high, cheaper competitors would have 
entered the market long ago. Such as these (http://www.mdhearingaid.com/ 
). 10% of the cost but no lifetime support, probably less flexible 
technology. But the marked supports both.

And then there is the question of what's a "reasonable" profit margin 
that would make Bernard and Bill happy. 5%? 10%? 30%? 70%? 90%? In 
e-books it is probably in excess of 95%.

"Capitalism is inherently evil"? Only in the eyes of know-nothings. 
Capitalism pulled out of poverty over billion of people in just the last 
20 years. In contrast, communism was responsible for tens of millions 
starving to death in Soviet Union and China, and another tens of 
millions living in semi-starvation for decades in their socialist 
satellites.

On 7/16/2015 12:18 PM, Bernard Cleyet wrote:
> > > Probably more than 15 cents but not very expensive in any case. But what's
> > > >>your point? How much does it cost to "make" another e-book? Should we
> > > >>therefore give them away for free?
> > > >>
> Of course not.  I don’t think that’s ever been suggested.  The issue is, who pays.
>
> Every one knows who I think should pay.
>
>
> > > >>-----
> > > >>Sent from a smartphone, whose spellchecker has a will of its own.
> > > >>On Jul 15, 2015 6:37 PM, "Bill Norwood"<bnorwood111@gmail.com>  wrote:
> > > >>
> > > > >>>Is it true that those $2000. hearing aids cost about 15 cents to make in
> > > > >>>China?
> And,  the mark up is another example of the transfer of labour to the wealthy (ruling class).
>
> bc again writes:  Capitalism is inherently evil.