Volatility of bitcoin price is a serious business challenge. Even though bitcoin shows good promise, but in cash rich business like general stores and fast moving consumer goods business, the volatility throws a significant profitability challenge. Unless we find a solution to immediately settle the funds received in bitcoin, it will remain as a major roadblock for bitcoin to be accepted as a normal currency . . . Probably a big company can handle such losses, but a small trader will not be able to handle this where every penny counts. That's the business challenge I am referring to and it is a major roadblock for bitcoin to be accepted as a mainstream currency.
Coinbase does offer an instantaneous-conversion service for businesses (although they probably charge well for it). But you make a perfectly valid point. Yet in that scenario it is at least possible that for the merchant in question, the bitcoin sales were in
addition to what he would have sold anyway. In this early-adapter phase, it is certainly a possibility. But again, tomorrow those "losses" could become gains. There is no way of telling. In the end it comes down to the cost of instantaneous conversion vs a transient bookkeeping loss that might turn into a very real long-term gain. I think a Bitcoin sticker in the window would at least do no harm.