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Ed Abrams's avatar

Interesting newsletter.

I am a new subscriber. I am looking forward to reading your future articles and catching up on your past offerings.

In the cupcake scenario I see another solution that may be beneficial. Since the pain points for the baker and distributor are 9 cupcakes either side of the optimal 100 cupcakes, suppose the baker offers a discount only on the cupcakes above the distributor's pain point. The first 91 cupcakes are $2 each and each additional cupcake is $1.50 so the risk is more evenly distributed. I doubt my back of the napkin calculations are correct but, does the concept make sense to you?

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