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The Monday Morning Memo

Mark is known around the nation as “Indiana.” I promise I’m not making this up. – Indy Beagle

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Random Quote:

“A cafe owner, famous for his soup, was told by his accountant that he could boost his profit significantly if he would add just 5 percent more water to the recipe. The accountant was right. The water was added and no one noticed. Months later, the cafe added 5 percent more water and still no one noticed. Later, more water was added. And then a little more, but never more than 5 percent because they had now ‘proven’ that customers cannot detect just 5 percent more added water.

As you suspected, the cafe owner didn’t lose his customers incrementally, but all at once. ‘The soup here just isn’t as good as it used to be.’

I was told that story by a multimillionaire Wall Street speculator. He says American businesspeople have a peculiar blind spot to the all-at-once backlash that comes from watering the soup. He said American businesses expect to see incremental declines when they are incrementally abusive, but that’s never how it works. When the wife packs up to leave, she takes the kids and leaves all at once.
“

- Roy H. Williams

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