4 ms·
> Why does the restaurant charge me the same for a burger at 10pm as a burger at 7pm (after all, the staff are already being paid for the day and ingredients al
by jackgavigan 11y ago
> Why does the restaurant charge me the same for a burger at 10pm as a burger at 7pm (after all, the staff are already being paid for the day and ingredients already purchased)?
Actually, it's not uncommon for a food vendor to drop its prices at the end of the day, e.g. https://www.itsu.com/about/sale https://www.itsu.com/about/sale
That doesn't invalidate your point, though.
I'd also suggest that the risk associated with a transaction should also be factored in. The cost of processing small (e.g. $100) and large ($100,000) transactions may be the same but the potential cost to me if I drop the ball is several orders of magnitude larger.
- mrgordon 11y agoYeah good points. Additionally, Vanguard is making money through securities lending which is also proportional and can offset much or all of the expense ratio. "In 2012 securities lending enhanced annual fund returns by more than 1 basis point for over 60% of Vanguard's participating funds, by more than 5 basis points for nearly a third of funds, and by more than 10 basis points for over 15% of funds."