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 - The Engine Rebuild Kit - by Curtis Von Fange. I always liked engine rebuild kits. They have all the replacement parts for overhauling an engine without going to the store to get gaskets, special measuring tools, or miscellaneous parts. They come neatly packaged, clean and tidy. But it's important not to let that packaging lull you into a false sense of security. The appearance of matching sleeves, pistons, rings, and bearings can cause frustration and agony if not properly measured and installed in a workshop environment. Following c
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