Blindspot said:
Not sure what to make of this. I checked out the Xenonics website, and the products seem hyped up to me. The prices that are quoted out there seem out of line too - $2500+ for one of these? Maybe the military pays that kind of money - along with the $900 hammers. :huh2:
Your thoughts?
http://cgi.govliquidation.com/auction/view?id=798755&convertTo=USD
**EDIT** Before you sign up and start bidding, note that these are in Condemed/Repairable condition (H7).
Actually the $900 hammer is more a system problem with how the Army does business. I have been in situations where because of how they want to buy something,you end with ridiculous prices.
I had a situation with the USAF where they wanted it yesterday, it wasn't a part we normally stocked, and under our contract, the only we could get it in the time frame the USAF wanted was to pay MSRP, and then add to it Fedex overnight, and our basic costs.
However there is another problem that creates absurd pricing, and it has to do with how these contracts work
What happens in a military contract is you are required to distribute the overheads evenly across the line items on the contract.
So if Line item 1 is worth $10,000,000 and line item 2 is 100 hammers, I leave it to you imagine how expensive the hammers get when they are carrying half the overhead on a $10 million contract!!! Same things happens to coffee makers and toilet seats!
