Three contractors are bidding to fix a broken wall at 10 Downing Street; one from London, another from Bristol and the third, Liverpool. They go with a government official to examine the wall. The London contractor takes out a tape measure and does some measuring, then works some figures with a pencil. 'Well' he says 'I figure the job will run about £900: £400 for materials, £400 for my crew and £100 profit for me.' The Bristol contractor also does some measuring and figuring, and then says: 'I can do this job for £700: £300 for materials, £300 for my crew and £100 profit for me.' The Liverpool contractor doesn't measure or figure but leans over to the Government official and whispers: "£2,700." The official, incredulous, says: 'You didn't even measure like the other guys! How did you come up with such a high figure?' The Liverpool contractor whispers back: '£1000 for me, £1000 for you, and we hire the guy from Bristol to fix the wall.' 'Done!' replies the government official. And that friends, ...... is how it all works.