Making Decisions

by stewart

Here is a Hypothetical to Consider

You go to a Flea Market and see an old coin that you purchase for $!0.00. That is the price designated by the vendor and you do not haggle over the price; the vendor is happy to receive full payment. Because of your experience you suspect that it is worth over $500.00. When you bring it to your local coin dealer; he/she is interested and gives you $450.00 for it.

So you have realized a $440.00 gross profit and spent just about 2 hours of your time ($25 x 2= $50) and maybe $40.00 in traveling expenses with your car. After expenses you have realized a $330 net profit or a 330% gain on your initial investment of $10.00.

When you tell your significant other about your good fortune, he/she is happy for you but offers, “Don’t you feel bad for the Flea Market vendor? Some might say you took advantage, suspecting the coin was worth more, and perhaps you should now offer additional money.”

What is the Right Action to Take

a) Do nothing and keep all the money because you earned it. You had the additional information about coins because you have been collecting/studying them for years and you worked hard to gain this information. At the point of sale you suspected it was worth more but were unsure. Also the seller was happy to get full price asked.

b) Share the profit with the Flea Market vendor. Give the vendor additional compensation. If you agree with this course how much would you give?

-Give a token amount; perhaps additional $ 50.00.

-Or split (50/50) the entire net profit ($330).

c) Because of your good fortune, donate part/all of your earnings to charity or a needy person.

Making A Decision

When I considered what action to take, it occurred to me that any of the above would work. It depended on what I thought was most appropriate.

To me much of life and the decisions we make are like this. There is no right or wrong answer. There is room for our personal preference and what we think/feel is important.

Also some might offer there is ‘a higher road’ and maintain this is always a ‘better solution.’

Yet how useful is this solution if you don’t feel this way?

-SB

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