Beware! Don’t let your sunk costs hold you back

[monira#$1244]

Hello everyone, before starting the article, let’s think about a question first.

There are many such scenarios. When you invest more and more in the early stage, but the gains are not necessarily more and more, will you persist or give up?

I saw a message like this recently. Let’s call the poster Xiao M for now.

Xiao M is a salesperson in a foreign trade company in Guangzhou.

He has been discussing an order for a long time recently. All aspects have gone well. The customer is eager to do the deal and is very satisfied with the factory's conditions. The specifications of the samples sent free of antigua and barbuda b2b leads charge also meet the customer's requirements.

However, it’s been stuck and I can’t sign the order.

No matter how much we communicated and coordinated, we still couldn't reach an agreement on the price of the product. The target price given by the customer was too low, and the company made little profit.

In this case, the initial investment is a lot, should I continue to follow the order?

Regardless of whether the project is continued or not, the initial investment cannot be recovered. These initial costs that cannot be recovered are actually what we often call "sunk costs".

The explanation of "Sunk Cost" on Wikipedia is: A concept used in economics and business decision-making, referring to costs that have been paid and cannot be recovered.