Shrewdness in Business
Luke 16:1-15
Illustration
by King Duncan

There was once a young businessman in Germany named Neckerman who had a burning ambition to build his small retail store into a large chain of department stores. His problem was that no one knew his name. He couldn't attract customers. He had only limited capital.

This was shortly after World War II. As you might imagine there were shortages in Germany of almost everything. Thus, the existing big department stores saw no reason to cut prices. They sold whatever they could get at healthy margins. Neckerman saw this as an opportunity. If only he could position his store as the low-cost, high-value leader, he could build the enterprise of his dreams.

As it happened, Neckerman managed to acquire a large shipment of spools of thread. Thread was in great demand in those days. Clothes also were in short supply. Women were constantly repairing their families' old garments. The obvious step for Neckerman would have been to sell these spools of thread in his own store. It would undoubtedly attract more business.

Instead he offered the whole shipment of thread to the buyer for the largest department store chain in Germany at only a slight profit. The buyer for this chain jumped at the opportunity and in only a few weeks had sold all the thread at a much more substantial profit.

It usually takes several months to use up a whole spool of thread. Thus, the whole transaction was forgotten by the time the executives of this large chain started to notice crowds of people shopping at Neckerman's. Soon the reason became apparent. It was the spools of thread the large chain had purchased so eagerly from this young upstart. As German housewives finished their spools of thread, a piece of paper that had been wrapped about the spool under the thread fluttered out. It read like this: IF YOU HAD BOUGHT THIS THREAD AT NECKERMAN'S, IT WOULD HAVE LASTED TWICE AS LONG. Overnight, everyone knew the name Neckerman. From then on, the firm had no trouble attracting customers.

Shrewd. Even a little sneaky. Sometimes in business the line between ethical and unethical, shrewd and outright dishonest, is a little blurred. And nice guys, or gals, don't always finish first.

The Exceptional Individual (New York: St. Martin's Press, 1998), pp. 63-64, by King Duncan