Real-Life Decision Making -- Solution
You purchase the second-hand chairlift.
This is the real-life decision that Aaron Liswood would make. He is the
director of ski business and resort management at a college.
"You have to think of many different factors," he says. "You have to think
of the size of the hill, the climate and the area."
This is a small, family-oriented hill with not too many people
living in the surrounding area that could immediately boost the number of
people visiting your hill. You think it's wiser to give these customers
a reliable chair, without all the bells and whistles.
"You need to ask many questions," says Liswood. "Do you have the volume
of ski traffic in the area to support the chair?"
In your area, you probably don't. It's too risky for you to purchase
the bigger chair without knowing if you can boost the number of people visiting
the mountain. You install the second-hand chair. While it's not as glamorous
as the quad, it works well and people are satisfied.