What happens after a year? If you’ve locked yourself long-term into a below-prevailing-rates investment, isn’t that going to be a big problem when your competitors can offer higher rates?

This kinda happens with fuel cost hedging in aviation: if your airline locks itself into a high rate and prices drop, your competition buying at spot is going to offer better fares and you’ll bleed customers.

And vice-versa when you lock yourself into a price that becomes below-market: you’ll be able to offer better fares and gain customers.

Then comes down to whether you have enough equity to bleed (or hood enough marketing) to weather the storm created.