Taking Losses For Gain

Posted: July 25, 2011 in Musings
Tags: , , ,

I arrive at this type of topic because of a combination of matters in my personal life that have been provoking a lot of concentration on this idea. I think the idea first really formulated in my head back in the day when I was a manager in a large retail chain. While I personally didn’t have my hands very much in any kind of budgeting, it was certainly something I heard a lot about, and it impacted my work a lot. We’d get a lot of unsold merchandise that simply didn’t move because it was priced too high. It’d clog up everything in the back, taking away storage space that could be used to order up on things that actually would sell, not to mention creating all kinds of extra work that becomes necessary when the stock rooms get full (which takes away from accomplishing tasks that lead to sales, like filling empty shelves).
We’re talking about holding onto this merchandise literally clogging things up and making things spin backwards.

Yet, the reasonable solution, which would be to simply acknowledge that this merchandise isn’t going to be sold at such a price, that it’s creating all kinds of waste to keep holding onto it, and subsequently mark it down to a better price to get rid of it, was usually prevented by budgetary decisions further up, which would freeze taking losses (taking any action, like reducing a price of an item, which would result in a loss on the budget sheets) for certain periods of time, because of an interest to alter the accounting reports, to make things appear better than they actually were by not showing the loss until a more “convenient” time.

Before I get into musing on the rationale for why they would make such a decision,  I’d rather respect that this was simply backdrop for the actual idea. lol.

Sometimes taking a decision to follow through with something unpleasant right now can offer multitudes of gratification down the road, through enabling you to have better footing for making your life more in tune with your preferences and wishes. Sometimes breaking through our own limitations, which can often be uncomfortable and force us to experience fear and bad feelings, can leave us feeling more confident and make us more who we really would wish to be. Sometimes living a period of time in more austere conditions can open the path towards a life of plenitude and riches. We might have a lot of resistance to taking a loss right now, considering that, by definition, it’s not something that appeals to us, but carrying around those losses with us and trying harder and harder to juggle them as they accumulate is something that, if we stop and think about it, is much less appealing anyway.

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