Based on the reading, which is the best strategy for John to maintain his profit margins?

John's Place sells furniture and other large discounted household items. John is able to source most of his inventory locally, keeping shipping costs low. Recently, John lost an important local supplier of couches, and now the company must ship couches from a location 1,000 miles away.

A. John can charge much more for his couches, passing the shipping costs onto the couch customer.
B. John can raise prices on all of his furniture and spread the extra shipping costs among customers.
C. John can keep charging the same price and make up the loss over a longer period of time.
D. John can wait until he gets another local supplier and let his couch inventory run out until then.

Question

11-07-2024
Business

Answered

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Based on the reading, which is the best strategy for John to maintain his profit margins?

John's Place sells furniture and other large discounted household items. John is able to source most of his inventory locally, keeping shipping costs low. Recently, John lost an important local supplier of couches, and now the company must ship couches from a location 1,000 miles away.

A. John can charge much more for his couches, passing the shipping costs onto the couch customer.
B. John can raise prices on all of his furniture and spread the extra shipping costs among customers.
C. John can keep charging the same price and make up the loss over a longer period of time.
D. John can wait until he gets another local supplier and let his couch inventory run out until then.

Sagot :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-07-11T19:46:36-04:00

Final answer:

The best strategy for John to maintain his profit margins is to raise prices on all furniture items to offset the increased shipping costs for couches sourced from a distant location.

Explanation:

The best strategy for John to maintain his profit margins would be to raise prices on all of his furniture and spread the extra shipping costs among customers. By increasing prices across the board, John can offset the higher shipping costs for the couches that are now being sourced from a location 1,000 miles away. This strategy allows John to maintain his profit margins while still providing a variety of furniture products to customers.

Learn more about Profit Margin Strategy for Furniture Business here:

https://brainly.com/question/38342941

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Learn more about Profit Margin Strategy for Furniture Business here:

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