FREE WHITEWATER

An Exercise in Allocating Responsibility

A woodworker builds and sells birdhouses. He gathers materials, maintains a shop, and makes a few at a time for display and sale. To advertise his trade, he puts a sign in the window of the workshop:


REASONABLY-PRICED BIRDHOUSES
FROM A
LOCALLY-OWNED AND OPERATED WORKSHOP
ONLY $29.95 EACH

A customer visits the shop, takes a birdhouse off the shelf, and places it on the front counter for purchase. “I’d like to buy this one,” the customer says.

The woodworker smiles, and says, “Thanks. That’ll only be $40.00, less a $2.00 discount, for a total of $38.00. Would you like me to wrap it up?”

The customer’s surprised: “I thought your sign said birdhouses were $29.95 each. That’s $8.05 more than your sign says they cost.”

The woodworker replies: “We’ll, that’s last year’s sign. I have to add the out-of-the-area operations charges each year. Besides, I might have charged $40.00, so I think it’s unfair that you’re not taking that possibility into consideration. I’d at least like a little appreciation for the discount you’re getting. If you think about it, you’re not paying $8.05 more, you’re paying $2.00 less.”

The customer expresses additional surprise that there are ‘out-of-the-area charges,’ since the birdhouses are advertised as products of a ‘locally-owned and operated workshop.’

Exasperated, the woodworker exclaims,”Well, I am a locally-owned and operated shop. But, not all of the $38.00 that I’m charging you is really my responsibility. Years ago, when suppliers subsidized my goods, I was able to pass that along as a service from me to you. Their subsidies were really my gift to you.”

“Now, those suppliers from the big city keep coming down on me, you might even say hammering me, year after year. Although I seem to be charging you $38.00 for a birdhouse, I’m only responsible for about, say, $5.00 of the charges — the rest is the fault of those greedy, indifferent, scheming, manipulative suppliers in the big city. They’re the ones you should be upset with, not me.”

“If you think about it, I’m only charging you $5.00 per birdhouse, probably.”

The customer, puzzled, asks, “How can I tell which part of the work is really your responsibility?”

“That’s easy!” the woodworker declares. “If you find any part of the birdhouses that you like, whatever it may be, including subsidies from suppliers, that’s really from me. On the other hand, if there’s something you don’t like, including additional charges from suppliers, that’s the fault of other people, over whom I have no control, haven’t met personally, and wouldn’t like if I did.”



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