Healthcare Emotional Pricing

Martin Shkreli shares his perspective on healthcare pricing and consumer psychology, particularly how healthcare products are perceived and valued differently from other consumer goods.

Key Points:

• Healthcare Products are Processed Differently:

  • People treat healthcare products/services in a different part of their mind
  • Not viewed with rational price consideration like other products
  • Creates an emotional, entitled response: "I need this drug, I don't care what it costs"

• Consumer Psychology in Different Industries:

  • Regular products: People think rationally about price vs value
  • Healthcare: People think emotionally and feel entitled to access
  • Example comparison: Nobody questions Coca-Cola's markup on sugar water

• Healthcare Spending Trends:

  • US went from 5% to 20% of GDP on healthcare
  • Predicted to reach 50% over time
  • Driven by fulfilled basic needs (Maslow's hierarchy)
  • Ultimate desire is longevity/living forever

• Silicon Valley's Approach:

  • Wealthy tech leaders focused on longevity
  • Example: Larry Ellison's life goal is to live forever
  • Shows how healthcare is demand-side driven

• Healthcare Cost Increases:

  • Not driven by pharmaceutical companies or CEOs
  • Driven by universal demand for healthcare
  • Society wants healthcare for everyone - family, friends, progeny
  • Will continue to consume more over time

• Market Reality:

  • Healthcare pricing is company's decision
  • Part of American capitalism
  • Not determined by politicians, media, or public opinion
  • Even patients, while core constituents, don't set prices