Lesson from the Fruit Vendor

As usual, bought oranges from the same vendor.

I can always learn something from him.

An old lady negotiated the price with him, and he answered loudly (let all the people know), "perhaps sooner, I needed to earn few dollars to compensate the high cost" - (he considered opportunity cost, if he sold earlier in cheaper price, he was losing the opportunity to get the regular price with the profit).

He explained that recently the oranges are very expensive, in addition, they are not in good quality.

That is quite true - for 3 dollars an orange, I can't select plenty, as they are not in good shape. The vendor explained that he had already threw away a lot of the bad ones ( definitely, he has to bear the cost by himself).

Sometimes, it is easy to see people earn big money by doing business, however, as a business man, he/she has to take care of the extraordinary cost, e.g. write off the bad or stolen products.