This morning I once again will revisit my life long fascination with how much things cost. What exactly is it that determines the price of something? I know all about the laws of scarcity, of supply and demand pressures. Still when I encounter a surprising price point for something it always baffles me. Take this for example…
I recently developed a slight infection in one of my eyes. I visited my optometrist of choice who said it was a minor thing that could be cleared up with a three day course of a special eyedrop that she promised to call in to my pharmacy. When I picked up the very, very tiny container at CVS later that day I noticed that the bottle contained a mere 2.5 mili-liters of the cure for my eye problem. To put this in perspective…a gallon contains roughly 3,800 mile-liters. We are talking a splash of eyedrops here, in a bottle that was smaller than my pinky. So, when the friendly pharmacist announced that I owed him $29.75 I was astonished. I immediately started thinking of all the stuff I could buy for $29.75. The list was long and impressive. But my eye was hurting so I paid the man.
Then I started doing that thing I do when something baffles me. I sat in the parking lot…thinking. On my way to CVS I had stopped by a service station to fill up my tank with gas, the price of which has been all over the news of late. I paid a whopping $4.19 a gallon. Just a few years ago that same gallon would have cost around $2.75. But as I sat in the parking lot of CVS I started doing some math and discovered if the eyedrops I had just purchased was sold by the gallon—it would have cost $45,000!!!
Then I did some more thinking.
To get that gallon of gas to that service station pump, Somebody had to suck up crude oil from the depths of the earth where more often than not the drilling attempt fails. The labor involved in finding and then pumping that crude up from the earth is crazy dangerous and expensive. But that’s just the beginning. Once it’s pumped to the surface it has to be transported to a refinery somewhere. That refinery was built ages ago at great expense and the cost of its continued operation is immense. Once the crude oil is refined, it must then be loaded onto great tankers and shipped across vast oceans at great expense to ports where it is then transferred onto 18-wheel trucks that drive it across the country at great expense to filling stations great and small so that a guy like me can pull up, lift a pump handle and fill my gas tank up, all the while bitching and moaning at the ridiculous price of gasoline.
But, what of the people who provided me with this tiny 2.5 mili-liter container of eyedrops? Somebody, or more likely a machine tool, had to mix the three ingredients together, shake it up, then insert it into a mini plastic container with a child-proof top, slap a tiny label on the little container, place it in a tiny box and ship it to my CVS, after which they would call it a day and meet up for drinks at the local Buffalo Wild Wings.
When I brought this up later to Pam she listened politely then said, “Aren’t you glad you live in a world where instead of losing sight in your eye because of an infection, you can pay thirty bucks and be cured?”
This is what she does…she listens to my unhinged harangues and shuts them down with truth bombs.
But…$45,000 a gallon for eye drops?