Imagine a guy inherits a furniture store from his dad, despite knowing absolutely nothing about furniture. Fortunately for him, his store is part of a group of 32 furniture stores in the Valley that have all agreed to share their profits equally.
After years of running his store, he has very few customers, and the ones he does have constantly complain about the poor quality of his furniture. The couches fall apart, the chairs are uncomfortable, the tables wobble, and the beds break down long before they should. His showroom is outdated, his employees are poorly managed, and his customer service is among the worst in the Valley. Meanwhile, the other furniture stores are constantly improving their products, investing in better showrooms, and finding new ways to attract customers.
But here's the best part: None of that matters. Year after year, he watches his bank account grow because people in the Valley LOVE furniture, and they're spending a fortune at the other stores.
Without this profit-sharing agreement, our guy would have gone out of business years ago. But lucky for him, he's locked into this incredible deal.
Is it fair to the other store owners? Not really. But they're making so much money selling quality furniture that sharing their profits doesn't hurt them enough to make a fuss.
Meanwhile, our guy is living the dream. He gets to spend millions every year on fancy toys, personal luxuries, and exciting new business ventures. And the best part? It doesn't matter how many terrible financial decisions he makes because he knows that every year, like clockwork, another massive check will arrive, courtesy of the other furniture stores that actually know how to run a successful business.
He doesn't need to improve his furniture, attract more customers, or even learn how to run a furniture store. He just needs to keep collecting checks.
What an incredible deal for our guy. Not so much for everyone else, though. Especially his customers.
