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October 30, 2012

Competitive Pricing

There were two grocery stores in the same small town. One was owned by Eli, and the other one belonged to Stanley.

Eli had a sign outside his shop, “Peaches: $1 / pound.” A lady went in and asked for them.

“I am so sorry; they are out of stock right now. Come back tomorrow, and I’ll have them ready for you,” said Eli.

So she ventured into Stanley’s grocery store across the street. His peaches were $3 a pound.

“Well,” she thought to herself. “At least, he has them in stock.”

Still, she told the store owner: “Your prices are very steep. Eli sells them for only $1 a pound.”

“You’re right,” says Stanley. “And when I run out of stock, mine will be $1 a pound, too!”

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