Colonial homes provides a complete package of raw materials for the construction of the house. Cost of the package is guaranteed upon signing the contract of sale, while supplies (and payment) is not carried out for up to six months. In an attempt to reduce its exposure to price fluctuations in lumber, Colonial package sources (mainly timber) only wood in the yard, which also offers a six-month price. Lumber yard recently raised their prices, which caused a colonial look elsewhere (in the absence or at a fixed price guarantee). "Hide
by David E. Bell, Najib Hashem Source: HBS Premier Case Collection 8 pages. Publication Date: July 13, 1989. Prod. #: 190008-PDF-ENG
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