Feds getting annother new ship...
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Join Date: Nov 2012
10-06-2013, 01:23 PM
You guys seem to be having the same conversation going in the
2nd Friday Screenshot Available - 10/4/2013
thread, so here's my $0.02.
Originally Posted by
Originally Posted by
Seriously, economics people, get real.
So, for an economic example:
You operate a pair of clothing stores.
One location has a wide range of attire including formal wear, casual attire, activewear, accessories, undergarments, and so forth. You cater to a variety of clientele, and gain sales of some products simply because they are available while your customers are already shopping for something else, and you run a rather nice profit on all-around.
The second location sells socks, albeit a decent selection with a reasonable price point; however, in order to shop there your customers must have previously visited your first location. Customers do come to the second store looking for socks, but for some reason your profit margin turns out to be lower than at the first store, at times even operating at a loss. Over the next couple years, your customers visiting the second location submit a number of customer satisfaction surveys requesting a selection closer to that available at your first location; in response, you begin stocking kilts. While you do sell several of these kilts, you end up at a loss overall.
So, you decide to open a third location. At the same time, you try to get the second location running a bit better. You remove the restriction requiring a previous visit to the first, and add suspenders and scarves to your selection. Your main focus, though, is the newly opened third location; it has a somewhat smaller selection than the first or even second locations, but has higher quality apparel (including socks, kilts, suspenders, and scarves). The newly opened store also provides limited access to items carried at the other two locations, available upon request after your customers have signed up for a special customer loyalty program; however, they may only select items from one of the other locations. The third store does well, but for some reason the second store continues to see lackluster returns, and customer satisfaction surveys continue to reflect the desire for a better selection at the second location.
The obvious conclusion is that there is a demand issue in the second location, since the current selection allows customers to go out with a scarf around their neck, suspenders holding up their kilt, and socks to keep their feet warm.
Seriously, form that mental picture, then think about why that second location doesn't run a profit.
Timeo Danaos et dona ferentes
... unless it's yogurt.
A Tale of Two C-Stores
... to be read with a sense of humor, please.
The completely unofficial design the next KDF ship thread!
Last edited by breadandcircuses; 12-29-2013 at