O Canada!
Posted by Ben on March 10th, 2005
Don’t the FDA and US Customs have better things to do than intercept drugs coming in from Canada? I don’t have a lot of faith in what the FDA says after we’ve gone through several prescription drugs getting recalled lately due to a combination of sketchy research by the drug companies as well as lax oversight from the FDA.
Apparently, they’re only capable of “acting in the public benefit� when it conveniently lines the pockets of the pharmaceutical industry.
I don’t buy this whole “regional pricing� racket they’ve got going on. If a drug costs US$2/pill in Canada, why should it cost $5 here? I can’t believe FDA officials can put on a straight face when they say that that same Canadian drug is somehow “unsafe�. Kind of an insult to Canada. (but then again, the Bush Administration has been doing that a lot lately between the missile shield, putting a former Canadian Defence Minister on the “no-fly� list, etc.)
The DVD market is the same way. DVDs are region-coded, so a disc I buy in the US will not play in a DVD player purchased in the UK. Fortunately, it’s trivial to work around that, if I wanted to, say, take advantage of the fact that legit DVDs in China cost all of $4. The only downside is that I’d have to fly to China to get those discs…
Personally, I think a company/industry’s way of making money shouldn’t rely on crude lock-in techniques like DVD, or a government agency you’ve got in your pocket (FDA). You make money based on how good your product is and what kind of benefits you provide the consumer above and beyond the competition. What if Kraft sold a springform cheesecake pan that only worked with Philly cream cheese, a sandwich maker that wouldn’t work unless you used Kraft American Singles, a pitcher that only worked with Kool-Aid, or a bowl that could only be used with Jell-O gelatin and no other. Sounds pretty ridiculous when you apply stupid usage restrictions to food, huh? People buy Philly more than other brands because it’s better. They’re willing to pay a premium over others because it’s better, and we try pretty damn hard to make sure it stays better.
ObDisclaimer: As always, my opinions are my own and not my employer’s. However, all product names referenced above are in fact registered trademarks of Kraft Foods.