Why they don’t require math for business majors

From Clientcopia:  (can’t find the actual thing).

Project Manager:  Our costs to do this project would be around $10,000.  Therefore, we bid $14,000 to meet our profit goals.

Big Boss:  WHAT?  Those other guys are bidding $10,000 or lower!

Project Manager:  They’re high-volume agencies – we’re a custom shop.  Our costs are higher.

Big Boss:  I think you just don’t want to do this project.  Change our bid to $5,000.

Project Manager:  We’d be losing $5,000 in doing so!

Big Boss:  I don’t care – we need that work!

I’ve seen that before, actually, personally.  There is strategy in underselling if there’s fierce competition on your own level and if there’s a high probability of repeat business that more than makes up for your loss.  See the airline and fuel stations in years past.  Except that large, one-off projects like what they were presumably describing, aren’t subject to these same laws.

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