
Fixed and variable costs, pricing strategies and quantitative aspects of customer demand are much more known and openly shared and discussed by companies in the high tech industries. That critical piece of entrepreneurialism, understanding the specific economic value of a product or service to the end consumer is absent in life sciences. The problem of course is the “third party pays” dynamic in life sciences where a third party, insurers, pays for services consumed by patients. If patients knew, or perhaps were even paying, prices, their behavior would likely be much more rational, and so too would health services offering have to be much more rational. Price is not discussed and is rarely even available at the doctor’s office.