U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 01-06-2009, 06:45 AM
 
Location: Hope, AR
1,505 posts, read 2,855,550 times
Reputation: 248

Advertisements

I've seen some commercials lately (Nutrisystem is one) where you can lock in today's prices for an ongoing service. I think that they're really betting on further deflation, while capitalizing on people's fears of inflation.
Reply With Quote Quick reply to this message

 
Old 01-06-2009, 07:08 AM
 
Location: Heartland Florida
9,324 posts, read 24,272,537 times
Reputation: 4927
They will lose then, as deflation cannot exist under our system. Perhaps they are just trying to assure that they have customers in the future at any cost so they can borrow more money to do business.
Reply With Quote Quick reply to this message
 
Old 01-06-2009, 07:12 AM
 
Location: Hope, AR
1,505 posts, read 2,855,550 times
Reputation: 248
Maybe, but I can't believe that they would offer this deal if there was a possibility that they would lose money by inflation

Quote:
Originally Posted by tallrick View Post
They will lose then, as deflation cannot exist under our system. Perhaps they are just trying to assure that they have customers in the future at any cost so they can borrow more money to do business.
Reply With Quote Quick reply to this message
 
Old 01-06-2009, 10:00 AM
Status: "In my anti Corona hidey hole......." (set 10 days ago)
 
Location: North Central Florida
5,413 posts, read 6,448,085 times
Reputation: 3224
Quote:
Originally Posted by Lulu101 View Post
Maybe, but I can't believe that they would offer this deal if there was a possibility that they would lose money by inflation

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.
Reply With Quote Quick reply to this message
 
Old 01-06-2009, 12:12 PM
 
8,939 posts, read 7,900,625 times
Reputation: 7315
This is the time of year when health clubs, diet services, etc. get the most number of new members. T

They can lock in prices from their suppliers so they're covered against price increases.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 09:02 PM.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top