posted on Dec, 5 2012 @ 10:38 PM
Originally posted by AfterInfinity
You mean, that's the reported purchase. Right. I can think of better things the military would buy and just SAY the $600 went to a toilet seat.
Remember, the people recording these finances are probably under an oath of secrecy, just like the guys who never get proper medical treatment because
they can't divulge their working conditions. If they did, they would face treason.
It was $640 for the plastic toilet seat, not $600.
I don't know many specifics about the toilet seats except they were for aviation, but I can speak to other things my employer has sold to the
government for maybe 20 times the amount the same thing would sell for to an ordinary customer. There was no secret financing, we got the full 20
times amount, and we earned it. We had to perform lots of additional expensive tests, and fill out tons of paperwork for the bureaucrats, so after we
did all that, our profit margin was actually slightly less on the government or military sales, even though we charged 20 times more. All those extra
tests and all that paperwork costs money! I kid you not.
Believe it or not some people will actually buy a toilet seat without requiring lots of tests on it, and they do get a better deal. But $640 is still
outrageous, so one way government can be streamlined is by reviewing all the bureaucratic requirements for such purchases and streamlining them.
However in the end, you are still always going to end up paying more for anything that goes on an aircraft, because it does undergo greater scrutiny
than the same item which isn't for an aircraft application.
Volume makes a difference too. If you get an order for 20 toilet seats and that's all, and you have to buy a new mold for $20,000 to make them, your
amortized cost for the mold is already $1,000 per toilet seat, before you've spent even one dime on labor and materials to make them.
5-12-2012 by Arbitrageur because: clarification