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PROFIT ANALYSIS
William C. Lawler
Abigail Peabody was a very well-known nature photographer. Over the years
she had had a number of best-sellers, and her books adorned the coffee tables
of many households worldwide. On this particular day she was contemplating
her golden years, which were fast approaching. In particular she was reviewing
her year-end investment report and wondering why she was not better pre-
pared. After all, she had been featured in the Sunday New York Timesbook
section, had discussed her works with Martha Stewart, and had been the
keynote speaker at the Audubon Society’s annual fund-raiser. She knew it was
not her investment advisers’ fault. Their performance over the past years had
been better than many of the market indixes. She wondered if she was just a
poor businessperson.
The last thought struck a pleasant chord. She had a grandson who was a
junior at a well-known business school just outside Boston. It was time, any way,
to catch up to his latest business idea. She dialed the number from memory.
He was as lively as usual. “Hi, Abbey, I was just going to call you.
How’s the new bird book coming?” [Of her many grandchildren, he had the most
irresistible charm.] How she loved his ability to make her feel young—and his
ability to remember never to call her anything that began with Grand-.
“Actually, Stephen, that’s why I’m calling. I was just reviewing my retire-
ment portfolio, and I think it’s time for me to renegotiate my royalty structure
with my publisher. I could use some help from a bright business mind.”
“Love to help you. What’s wrong with the current contract? Haven’t you
been with them since the beginning?”
“ Yes I have, but things have changed. In the old days, they provided me
with many services. They brainstormed projects with me, suggested different