Author Archives: Tom Mezger

The expense of supporting a product in the field can easily bankrupt unprepared companies. Every sale carries with it the liabilities of breakdowns, returns, parts inventories, legal action, call centers, training, etc, liabilities which lag – often by more than a financial year – the actual sale. Holding back a percentage of each sale to pay for those past sins is a sensible business practice, otherwise you’ll find yourself scrambling to cover old debts with current money, kind of like today’s big banks. Continue reading →