Case Study Kiddieland
Some advantages to purchasing a two-wheeled trailer for each store are not having to pay shipping or delivery charges once the gym has been purchased and the customer can use the trailer without incurring an additional rental fee or cost to them as well as the convenience of the customer being able to take the gym home Ninth them immediately.
Some disadvantages would be primarily profit loss, inconvenience to many customers who do not have vehicles which accommodate trailer hitches, the liability for licensing and insuring each trailer and conflicts arising En more one gym is purchased and the trailer is being used for another delivery. Upon first glance, the disadvantages to both the consumer and the company are too great for this to be a viable option; however, more research and discussion may be needed to validate this as an option.
Some advantages of getting a local trucking company to deliver directly to the customers is once the customer pays for the product, the shipping to their location would be shouldered by the company and it Mould be conveniently delivered to their location. Some disadvantages would be the additional cost of shipping past the 25 mile mark and the infrequency of delivery scheduling. If customers have to wait a few days to get their product, their time utility and place utility may be better met if they opt for a cheaper, more easily obtained gym rather than the Super Gym.
Some advantages to stocking the trucks at distribution centers and delivering the gyms with retail store deliveries are the convenience to the customer, making the place and time utilities more beneficial to the customers, and being able to ship directly to the customer without needing to ire additional shipping services by using trucks which are already being used for deliveries. Some disadvantages are the possible liabilities with damage to private property, loss of utility of space in the warehouse while these gyms are sitting there Matting to be sold, and possible mistakes in shipping the packages – similar to the complaint Super Gym had when orders would get mixed up and delivered improperly.
Some advantages to charging for home delivery would be the cost of shipping from the store would be paid by the customer, so no additional expense is squired by the company and the customer would get the product delivered directly to their location, meaning less hassle for them.
Some disadvantages are the fact that they have never charged for delivery before and there may be unexpected costs and problems involved, the customer may likely opt for a cheaper alternative to avoid the additional cost and the brochure must be changed within a very short time period to announce the delivery charge.
Trying to figure the total cost and evaluating the trade-offs between the alternatives, I would most likely lean towards having the customer pay for delivery.
It simplifies the physical distribution and gives the company better control over the outcome as well as costing less to the company by having the consumer pay for the delivery. I have seen it work for many retailers, notably Kea and similar stores which sell products that the customer cannot easily carry in their personal vehicles. New for 2012! We are offering store-to-home delivery for our Super Gyms at a flat low fee of $40.
Take a breather and let us deliver your new gym directly to your door. Inquire in-store about this new option. Just one more way we are striving to give you the service you deserve!
I would want to follow up the SUB question by doing some research on several existing popular Subs in the area. Most manufacturers offer their interior dimensions information on their own web sites, so the information Nullity be too difficult to obtain. After that, compare it to the dimensions of the three packages and see if they can accommodate the size in one trip, and if so, research how true the statement that Subs make up half their parking lots really is.