Quote:
Originally Posted by Lulu101
Maybe, but I can't believe that they would offer this deal if there was a possibility that they would lose money by inflation
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I think the profit margin, to begin with, has a lot to do with it.
Best example I can think of off the top...A pizza costs 12.95 to have delivered to your door. There is a total of maybe .50 worth of ingredients, another 1.50 in labor and energy cost, and a few bucks in delivery.
If there is any message in the "lock in plan" it is probably that you have been paying a grossly inflated value to cost ratio all along. There's plenty of room to "lose"(erode profit margin) money before an actual loss is realized.