John Dawson

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Views: 241

Words: 377

Pages: 2

Category: Business and Industry

Date Submitted: 01/14/2013 12:23 AM

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Boylston

Pros | Cons |

traditional design and very clean | noisier and larger non-automatic machines for freezing |

more completely equipped than any other store | the machine might be too cumbersome to handle |

the machine is more accurate and doesn’t use as much as the newer machines | no parking space |

the area is located in the center of a tenement area | sold only 4,200 gallons but the expected sale is 6,000 – 7,000 gallons |

couples would bring their children to purchase Velvet Freeze products | cannot be assisted financially by Mr. Ruper and Mr. Trommer |

the final price for franchise is $15,000 | |

Shafersville

Pros | Cons |

residents would be good customers since they spend a lot of time on inexpensive entertainment and they have to watch their money | the proposed location is inhabited mainly by low-middle income groups |

within the business district, storekeepers run profitable business | within the business district, there are retail outlet of local dairy and a competitive brand of ice milk product |

tenement houses are cleaner than that of Bolyston’s | the main competitor has a drive-in parking area and also sells sandwiches, grilled meats, and hot drinks |

it has joined two parking areas between the store itself and the new gas station | the local plant plans to shut down for a vacation during the last two weeks of July which means that the best part of the season will be lost |

no taxes for the first year | the final price for franchise is $19,000 |

Analysing the list above, it is clearly shown that opening it in Shafersville has more advantages and has a higher chance of getting higher sales. So, if I were John Dawson, I would choose to open the establishment in Shafersville. Since the recent sale in Boylston is less than the expected sale, it shows that the establishment doesn’t have what it takes to breakeven selling Velvet Freeze products. Even though the price is higher than that of Boylston’s, opening the...