Friday, April 15, 2011
In Response to Chris Cheever's Post...
I think L.L. Bean is really setting up for success when they announced their free standard shipping without a minimum purchase amount. Ever since Cabela's opened up, L.L.Bean really began to struggle to stay within the industry. By including free shipping, I think L.L. Bean is not only attracting customers, but they're also coming back with a competitive edge. Chris posed the question, is this approach appropriate for all companies? And I would definitely say no, this is not the case for all companies. For many of the companies that are in a similar situation as L.L. Bean and Cabela's...perhaps. But it is important to first analyze the demands of products, and the available funds at hand before making such a big decision. Free shipping has the potential of attracting new customers, and eventually creating a profit for the company. But, realistically, it is also very possible that no new customers are enticed, and the company looses thousands, if not more, dollars in paying for the shipping costs. Therefore, it is important that companies are careful in analyzing their situation, pros and cons, before any offers are made by the company.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment