Day 1 here
Day 2 here
3. Suppose you had an outside salesman who concentrated on a very specialized market. When times were good, he produced more than half your sales. But then his market tanked, and you didn’t get much from him for a period of more than a year. In the meantime, you found other ways to make sales and now you have a steady stream of profitable work. The salesman calls you to tell you he’s found a job that will keep your shop busy for a month.
But if you take this job, you will have to turn down work from your existing clientele and pay the salesman 10 percent of the gross. You are confident that you can book the shop for that same month with other work if you need to, but you won’t know for sure for some months in the future. On the other hand, if you generate your own work, you don’t have to pay the 10 percent commission. It’s not possible to double your production for a single month, nor is it possible to outsource either his work or yours. So what do you do?
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