…in which many participants don’t seem to understand the difference between cost and price. I think it’s part and parcel of the general cost-plus mindset of many in the industry.
[Update after noon]
Link was wrong before, but fixed now.
6 thoughts on “Another Space Transportation Discussion”
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Ah, just like the cost of pharmaceutical debates then …
Rand, I think you have the link mixed with that from your previous thread. It points to the climate engineering article.
Just a thought – maybe some of those people aren’t native english speakers and incorrectly use cost and price as synonyms in writing, i.e. mean “price” when they say “cost”.
Not that a lot of them necessarily understand the difference anyway…
It’s also worth pointing out that cost is not necessarily lower than price. It is by no means unusual to “buy” market share by selling at a loss when offering a new product. But I have no idea what SpaceX’s costs are.
Rand, do you have any insight into the Falcon’s costs (as opposed to its prices) then? I imagine that building 80% by value of the rocket in house (according to an interview with Elon) keeps their costs to mostly just raw materials and labor, which can’t be that crazy high.
Rand, do you have any insight into the Falcon’s costs (as opposed to its prices) then?
No. I’m sure that’s quite proprietary.