Case 1.1 Kiddieland and the Super Gym

Ch. 1 Case 1.1 Kiddieland and the Super Gym

Q1- Advantages of purchasing a two-wheeled trailer for each store would be that each store would have the capability to offer free delivery for its customers with a shorter deliver time since the trailor would be onsite.

Disadvantages would be the price. If they were to purchase two-wheeled trailers for each store they would be taking a loss in their gross profit.

Q2 – Advantages of having local delivery companies deliver the Super Gym would be that they don’t have to acquire extra equipment meaning lower capital expenses. The delivery charge is fairly reasonable.

Disadvantages would be that most delivery companies they talked to only deliver twice a week but not daily meaning the customer would possibly have a longer lead time on delivery.

Q3 – Advantages of keeping the Super Gyms at the two distribution centers then having the truck that makes the deliveries from the distribution to each store make the Super Gym deliveries to the customer are that they already have “equipment” in place so to speak.

Disadvantages would be that they are 18 wheelers and making deliveries in subdivisions is hard for them given that there is little space for them to maneuver around. This will likely cause damage to certain neighborhoods.

Q4 – Advantages of charging customers for delivery if they are unable to take the Super Gym home with them would be that the company would not have to worry about delivery costs.

Disadvantages would be that they would have to try something they have never tried before.

Q5 – The alternative that I prefer would be charging the customers who want home delivery if the customer cannot pick up their Super Gym. A flat fee of $40 for home delivery for the size of the Super Gym seems fairly reasonable and it would avoid the headache of having to acquire equipment. To me this seems like the least expensive option.

Q6 – “Please note that home delivery is available for the Super Gym at a flat rate of $40”...