Employee Sunk Costs
Another story in the Mistress’s Child series.
It was another of those days when Alfred was at the Mansion, sipping tea with his old friends working there. He was there on an errand for the Old Master, who would not be back till the afternoon. All employees of the Old Master, however, were instructed to only take the designated Mansion Ferry Coach that took a designated route around the various places it would stop at. Because the coach stopped at the Mistress’ place in the morning, Alfred hopped on to the coach, amidst great unhappiness with his Little Mistress. She had wanted him to finish off some work in the morning before going, but hiring another coach in the afternoon was out of the question, with the household expenses being cut further.
While happy to see him there, his old friends really questioned how he could be away from his work for an entire morning. He could have done so much with his time, rather than sipping tea with them.
“So you guys are jealous that I’m here sipping tea while you are working?” Alfred winked as he said that.
“Come on, Alfred! We’ve been friends for so long!” The chorus jibbed at him, as the group of old friends laughed loudly, “We were just wondering why Boss never thought of how he is losing money by having you here. Our salaries are confidential, but we are very sure you are worth more than 150 pieces of silver an hour! A coach will only be about 100 pieces of silver!”
There was a twinkle in Alfred’s eye as he replied, “Ah, my friends, you really need to understand more about economics. The Mansion Ferry Coach and my salary are all sunk costs. Old Master has already paid it, and it cannot be recovered. On the other hand, the coach I hire will be additional silver out of the treasury. If I were to be the Old Master, I may possibly do the same thing as him! No, I am afraid my time is not worth that additional silver to Old Master.”
There was silence around the table as the other servants pondered upon Alfred’s statement.
“So…shall we have another cup of tea? Or am I taking away your time worth 150 pieces of silver an hour?”
The laughter returned as the old friends returned to their chatter.
It was another of those days when Alfred was at the Mansion, sipping tea with his old friends working there. He was there on an errand for the Old Master, who would not be back till the afternoon. All employees of the Old Master, however, were instructed to only take the designated Mansion Ferry Coach that took a designated route around the various places it would stop at. Because the coach stopped at the Mistress’ place in the morning, Alfred hopped on to the coach, amidst great unhappiness with his Little Mistress. She had wanted him to finish off some work in the morning before going, but hiring another coach in the afternoon was out of the question, with the household expenses being cut further.
While happy to see him there, his old friends really questioned how he could be away from his work for an entire morning. He could have done so much with his time, rather than sipping tea with them.
“So you guys are jealous that I’m here sipping tea while you are working?” Alfred winked as he said that.
“Come on, Alfred! We’ve been friends for so long!” The chorus jibbed at him, as the group of old friends laughed loudly, “We were just wondering why Boss never thought of how he is losing money by having you here. Our salaries are confidential, but we are very sure you are worth more than 150 pieces of silver an hour! A coach will only be about 100 pieces of silver!”
There was a twinkle in Alfred’s eye as he replied, “Ah, my friends, you really need to understand more about economics. The Mansion Ferry Coach and my salary are all sunk costs. Old Master has already paid it, and it cannot be recovered. On the other hand, the coach I hire will be additional silver out of the treasury. If I were to be the Old Master, I may possibly do the same thing as him! No, I am afraid my time is not worth that additional silver to Old Master.”
There was silence around the table as the other servants pondered upon Alfred’s statement.
“So…shall we have another cup of tea? Or am I taking away your time worth 150 pieces of silver an hour?”
The laughter returned as the old friends returned to their chatter.
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