The Data Collection Handbook · Part IV. Running It at Scale

Chapter 11. Cost Engineering

In progress: this is the chapter plan. The full chapter, its charts, and its runnable experiment publish on this page.

What this chapter answers

Cost per request flatters everyone, because failures cost money and deliver nothing. This chapter builds collection economics around the one number that cannot lie, cost per successfully delivered record, and shows how method waterfalls, caching, and honest failure accounting drive it down.

What you will learn

In this chapter

The experiment

The question: Given several collection methods with different unit costs and success rates, what ordering and routing minimizes cost per delivered record, and how much does the waterfall save against using the premium method for everything?

A closed-form model of waterfall economics plus a simulation that adds the realistic twist most models skip: difficulty is correlated, so an item that fails on the cheap method is also harder for the next one. The code sweeps orderings and routing rules and quantifies the gap between the naive estimate and the correlated one. The data and code ship with the chapter, sized to run offline on a laptop with one command.

My hypothesis is that a tuned waterfall cuts blended cost several-fold against premium-only, and that correlated difficulty erodes the naive savings estimate enough to matter. That erosion is the argument for measuring your own success rates.

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