The foodservice contracts policy about disadvantages of potential for lost contracts.
Higher Cost
While a fixed-price contract gives a buyer more predictability about the future costs of the good or service negotiated in the contract, this predictability may come with a price. The seller may realize the risk that he is taking by fixing a price and so will charge more than he would for a fluid price, or a price that he could negotiate with the seller on a regular basis to account for the greater risk the seller is taking.