'Lessons in Economics' by Lynda McMahon

The shoemaker was at his wits end. Business was bad.

“It’s these cheap imports. Nobody wants quality anymore. Hand made shoes are a
thing of the past.”

His wife agreed. To make ends meet she got a job as a chambermaid at the Castle Hotel. Minimum wage, poor conditions, zero hours contract but it kept the wolf from the door.

The shoemaker wasn’t happy.

Things went on as they were but trade dwindled to a handful of customers. They could get what they wanted for half the price on eBay so why would they buy from him?

“No loyalty!” he complained. “After all these years I thought we were friends!”

A basic mistake. A commercial transaction was not a friendship. The customers smiled and called him ‘Jack’ but they were hoping for a discount which they frequently got.

His wife bided her time until, inevitably, he was spending more than he was making.

“Perhaps we should diversify? Find a gap in the market?” she offered.“ Or, I know some artisans who can make you some perfect shoes out of your remaining leather. They can’t get work so they’ll do it for a meal and a bed.”

The greedy shoemaker’s eyes lit up at the thought of cheap labour and he set them to work at once. By the end of the day, 100 pairs of shoes were ready for sale. His customers were delighted. The same shoe at half the price! But within days the complaints flooded in: poor stitching, letting in water, soles coming away. The ‘artisans’ had disappeared as quickly as they had come.

The new sign said, ‘Sally’s Second Chance Emporium: Re-purposed Goods for the Discerning Re-cycler’. A gap in the market. The shoemaker’s wife unlocked the door for her new customers.