Title: Purchase Price and My Cost
One day in 1968, The Jorrie Furniture Company was experiencing a run of furniture that had little pieces of cardboard carton embedded in the finish when we cut the cartons off the goods in front of the customer in her home.
This was causing very high (and expensive) rejection rates on the goods we were delivering,
and when my Dad asked what I was going to do about it,
I said “Well, Dad, There’s only one thing to do …
We’ll just have to uncarton all the goods in the warehouse, remove the paper from the finish, touch it up, wrap the goods in blankets and put them in the truck to deliver them.
My Dad said “Son, You Just Don’t Understand,
That only Adds to the COST of Doing Business,
It doesn’t make the Value any higher to our Customer.”
What this Means to Me:
Our Cost of Doing Business has Nothing to Do with the Price We Sell At.