Winter Wear Rental in Thailand
Okay, so here are some problems
I find with running a Winter Wear Rental:
Problem1: Demand will be
high during Winter/holidays
The sales could be very
fluctuated throughout the year. Therefore, the solution could be increase rental
fees during holidays and discount or having promotion during low season. Doing
this, the revenue receiving during high seasons will offset those during low
season, being able to pay fixed costs and employee salaries.
Problem2: Still a need of physical
showroom
From the interview, although I want
to make it a complete online process from placing order to return, some customers
want to see the product before they decide to rent. Therefore, I could rent a small
showroom to display products, so customers and come and see.
Problem3: Delivery and rental
Length time
The prompt delivery services could
take about more than one day-2 days if the delivery is made from different
region. Also, the length of rental time would be different among each otherwise
we’ll lose opportunity costs. For example, rate for 2 weeks rental would be $50
while rate for 3 days would be $20.
o Overall,
the latter two problems are quite easy to figure out; however, I still believe
that the solution to first problem might not be practical yet. Since we
increase price during peak times, the rent volume could have dropped.
Therefore, in the longer-term strategies, we might expand products to
summer-vacay-beach clothing for customers to rent or try to diversify products
that customers can rent throughout the year.
Piyaporn, I liked what you had to say about this assignment since you decided to talk about demand being high during the winter and holiday times. This was going to be the first thing that I feel would have an issue with a business opportunity like this one. It sounds like you are covering a lot of issues and have lots of ideas in mind, keep up the great work!
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