leverage

leverage is highly underrated in business. it’s sad to see those who should understand the concept fail to execute it.

it reminds me of a story i heard of a baker who relied on one flour supplier for his bread. he was at the mercy of whatever that supplier charged him.

the smart play would be to have redundancy built into the supply chain… a few more flour suppliers in the pipeline. the competition would help drive down the price of flour or give the baker options.  options are handy in a bind.  but what happens when there aren’t other suppliers?

you’re fragile. you better treat your only flour supplier with love and kindness.

the last thing you want to do is stab them in the back thinking you have others to fill their place.

you might not be baking much longer.