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An ongoing business that intends to remain ongoing has to charge current customers based on the replacement cost of consumable items used to service those custo
by tzs 4mo ago
An ongoing business that intends to remain ongoing has to charge current customers based on the replacement cost of consumable items used to service those customers.
That's why for example gasoline prices react almost immediately after something affects (or even threatens to affect) the price of crude oil, even at gas stations that have just filled their storage tanks and will be selling that already purchases gas for quite a while.
Most of us don't usually thing of computer hardware as a consumable but to a hosting business it effectively is.
- Daviey 4mo agoA better analogy is renting a car, and then jacking up prices for existing rentals, rather than just new ones.