Quote:
Originally Posted by Speed2K
Lol, this makes no sense. 
First off, the plates already on the cars are paid for. This is called a "sunk cost."
Secondly, you have it backwards; ICBC would be worse off by not selling the second plate. If ICBC sold the plates for $18 a pair ($9 each) and made a profit of $4.50 per plate sold, they would be forgoing $29million in revenue and (by your calculations) $14,562,747 in profit! Heck if they could, I'm sure ICBC would want to issue a third plate to us to generate even more revenue. IF we did not have to pay for our plates, yes, ICBC would be saving money. In reality ICBC passes the cost to us. If we only needed a single plate we, the consumers, would be saving $9 each time we changed plates or get a new one. |
THANK YOU!
I explained this twice to him, but boosted wouldnt understand. WE PAY FOR THE DAMN PLATES. ICBC doesnt save shit, or make any extra money unless we pay the same $18 and they either A. pay less to have one plate made, or B. if by an odd chance they actually make the plates themselves they save the cost of making the second plate.
I didnt even think about the fact that we pay a premium on the plate. I was only thinking about the cost of the plates themselves. ICBC doesn save shit on the cost of the plates unless we continue to pay the $18.