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Sample Essay on Purchasing a Two-Wheeled Trailer for Each Store

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Sample Essay on Purchasing a Two-Wheeled Trailer for Each Store
Advantages
  • The company will be in a position to deliver super gym to its stores on daily basis.
  • The trailers will always be available to deliver super gym to the customer’s premises.
Disadvantages
  • The company would make losses since it will lose gross margin amounting to $147 with a single delivery of the set.
  • The company is expected to purchase bumper hitches of $250 per store, insurance and licensing cost of $50 per store in a year.
Having Local Trucking Company Deliver the Super Gym from the Retail Stores to the Customers
Advantages
  • The company will be able to deliver its products to 85% of its customers who are within 25 miles from the company with the help of shipping company.
  • The company will reduce its cost of transportation since the trucking company charges $38.21 per set within 25 miles.
Disadvantages
  • The company will not be able to deliver super gym daily to its customers because most of the shipping companies offer to deliver twice a week.
  • Using Trucks may cause damages to super gym in the process of transportation.
Stocking Super Gyms at the Distribution Centers and Having the Truck That Makes Deliveries from the Distribution Centre to the Retail Stores and Also To Individual Customers
 Advantages
  • Having super gym sets closer to the customer’s premises will facilitates its availability.
  • It will reduce the time wasted during the delivery of super gym to the customers.
Disadvantages
  • It increases the cost of sales to the company.
  • The company will be forced to charge a higher price to the customers due to increased cost of transportation.
Charging Customers for Home Delivery
Advantages
  • The customer will cater for the cost of delivery amounting to $16000.
  • Customers will be in a position to decide on the time and place of delivery.
Disadvantages
  • Charging the customers for delivery will discourage sales.
  • The cost of purchasing super gym will go up when the delivery costs is charged on the customer.
Best Alternative

The best alternative is to use employ a shipment company to deliver the super gym to the customers. This is because of the fact that 85% of the company customers drives and lives within 25 miles.

 

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Sample Essay on Purchasing a Two-Wheeled Trailer for Each Store

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