ORIGINAL: kenh3497

A short story........


Jim is approached to sell his product in a branded store. His product has the reputation of being top shelf. First year he sells 50,000 units. Second year the branded store predicts 100,000 units so Jim hires more people and buys more equipment to supply the demand. Everything goes as planned. Year three, the order goes up to 150,000 units but the price has to be 25% lower. So Jim ''cuts quality'' so it is still good enough but not as good as before. Of course more people and equipment is needed. Fourth year the order is for 200,000 units at 10% under last years price. I think you can see the pattern here.... Year five Jim is out of business because poor quality undermined his reputation and the branded store found a new supplier at a MUCH cheaper price.