I look at this way, business should never be garanteed a profit. Profit is what is left when all facets come together. When I see fixed cost line items, I see a company that is not confident that they can turn a profit the old fashioned way, so they "gaurantee" that they will turn a profit by quoting a "base" price, but then adding fixed and variable cost on to that after the fact. It is a form of "bait and switch" if you think about it. I would like to take this cast of business owners and accountants in to a restaurant where they are going to pay for their own food. Have the menu show the prices. When they get their final bills, there would be fixed and variable add on's for napkins, cleaning the dishes and silverwear, steam cleaning the carpet, etc. Can you imagine how mad they would be? Has anyone noticed the absurd profit margins on iced tea? It cost maybe a nickle or so a glass including ice. Let's assume someone gets 4 refills.(most folks do not drink that much) We are not at half a dollar in cost. So double that and $1.00 would be more than sufficient profit. Some places charge over $2.00. I get ice water most of time now.
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Today's Featured Article - Oil Bath Air Filters - by Chris Pratt. Some of us grew up thinking that an air filter was a paper thing that allowed air to pass while trapping dirt particles of a particles of a certain size. What a surprise to open up your first old tractor's air filter case and find a can that appears to be filled with the scrap metal swept from around a machine shop metal lathe. To top that off, you have a cup with oil in it ("why would you want to lubricate your carburetor?"). On closer examination (and some reading in a AC D-14 service manual), I found out that this is a pretty ingenious method of cleaning the air in the tractor's intake tract.
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1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
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