View Single Post
  #30  
Old 12-14-2008, 01:13 AM
jross jross is offline
Registered User
 
Join Date: Jun 2008
Location: San Luis Obispo, CA
Posts: 57
Quote:
Originally Posted by ::matthew View Post
most industries seem to be able to shift their increased costs on to the consumer. I don't see why trucking can't do the same.
There's this funny thing called a 'demand curve'. Demand for a product isn't static - it depends on a number of factors. Including price. And guess what - if price goes up, demand drops.

What the truck companies have to do is try and optimize the price based on the demand curve. Yes, the price they charge goes up, but it can only do so to a point before the demand drops off enough that they lose money again. While the revenue is higher, the profit from that new price point is lower than the old one, which means they don't net as much profit as they used to.



I will say, as boneheaded as I think the emissions rule CARB has implemented is, I do applaud them for the rule they're simultaneously applying about tires and fairings. That, at least, is a step in the right direction.
Reply With Quote