Good old capitalism
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Archived from the IMDb Discussion Forums — Video Games
FireInBabylon — 9 years ago(October 13, 2016 11:49 AM)
Our primary customer at work is changing the part number call out on a shroud we manufacture for them. Just the part number is changing, nothing else (except of course all accompanying paperwork with said pn).
We've informed our forging house vendor of the change, and the need for new paperwork in turn.
Remember, only the part number is changing, not the process or any dimension.
The price for paperwork from the forging house?
$28,000
Which we will flow to our customer, who will flow to theirs, who will factor into their budget, and will affect their prices to consumers.
Beautiful.
So, you wanna play-rape? No? That's the spirit! -
jimmyandtheape — 9 years ago(October 13, 2016 12:22 PM)
Might be a stupid question, but if its going to cost $28K why don't they just keep the same part number as before?
Also this kind of problem isn't really a result of capitalism, just greed, not necessarily the same thing. Capitalism on paper should combat things like this. In a free market another company that doesn't charge exorbitant rates should exist, this should drive other company's to try to compete to make prices as low as possible. -
FireInBabylon — 9 years ago(October 13, 2016 12:31 PM)
Situation is far more complicated than what I made it out to be.
Out customer is huge ($14 billion annual revenue). They want to change a PN, they change a PN.
The forging company has a revenue of 10 billion. My family owned company (not
mine
) has very little negotiating power, so we tell our customer what our vendor wants and they battle it out themselves.
Furthermore, forgings were ordered pre-name change. The order is in frozen stage. So there's no stopping the buss.
Also, it's very much capitalism.
So, you wanna play-rape? No? That's the spirit!