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Trailer vs. Trucking for Gym Delivery

The document discusses two options for delivering the Super Gym product from KiddieLand stores to customers: 1) Purchasing a two-wheeled trailer for each store to allow customers to transport the gym themselves, which has advantages of avoiding shipping costs but disadvantages of losses from the trailer purchase offsetting that savings. 2) Finding a local trucking company to deliver the gym within 25 miles of stores, which could reach 85% of customers but may only deliver twice weekly and risks damage during transport.

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Tuyết Trinh
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224 views2 pages

Trailer vs. Trucking for Gym Delivery

The document discusses two options for delivering the Super Gym product from KiddieLand stores to customers: 1) Purchasing a two-wheeled trailer for each store to allow customers to transport the gym themselves, which has advantages of avoiding shipping costs but disadvantages of losses from the trailer purchase offsetting that savings. 2) Finding a local trucking company to deliver the gym within 25 miles of stores, which could reach 85% of customers but may only deliver twice weekly and risks damage during transport.

Uploaded by

Tuyết Trinh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

1.Purchasing a two-wheeled trailer for each store.

• Advantages
-Not having to pay shipping or delivery charges once the gym has been purchased
-The customer can use the trailer without incurring an additional rental fee or cost
-The convenience of the customer being able to take the gym home Ninth them
immediately.
• 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.
2.Find a local trucking company that can haul the Super
Gym from the KiddieLand store to the customer.
• Advantages
-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.
-Reduce its cost of transportation since the trucking company charges
$38.21 per set within 25 miles.
• Disadvantages
-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.

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