Cookie-N-Cream Case Study ANS
Cookies-N-Cream
Case Study
1. What are some location advantages that Cookies-N-Cream has that a brick-and-mortar retailer doesn’t have? Are there any drawbacks to a mobile vendor’s choice of location?
The first advantage that comes to mind is the lack of property tax. Selling out of a van eliminates this tax. It also allows them to drive to the customer, they can relocate to a busier place if the location they are currently set up at is slow. The drawback is it may be difficult to find if a returning customer is looking for them. Also, a stolen van equals a loss in their entire inventory.
2. Discuss site costs, retailing and office equipment, and other financial considerations of a mobile vendor such as Cookies-N-Cream.
A mobile vendor needs to have a reliable vehicle. A vehicle that breaks down will cost money to fix and also means they will lose out on a day’s work. Fuel costs must also be brought into consideration. A register and safe must be purchased that can run in the van. The van must also be customized so the store can be operational. This may cost some money to get it the way the owners want it to be. The owners also need to purchase licenses to sell in various areas. Each one of them cost a significant amount of money.
3. What legal considerations affect Cookies- N-Cream’s choice of location? How do those compare with the legal considerations of brick-and-mortar and home-based businesses?
Having a mobile business means the owners need to be sensitive to each area they enter to sell. Each location may have its own set of rules or laws, so they need to be knowledgeable in each. A brick and mortar store does not have to deal with varying rules. The same goes for home-based businesses. However a home-based business needs to be sensitive of the laws of operating out of a home. A business with large equipment can not run their business from a residential area.
Case Study
1. What are some location advantages that Cookies-N-Cream has that a brick-and-mortar retailer doesn’t have? Are there any drawbacks to a mobile vendor’s choice of location?
The first advantage that comes to mind is the lack of property tax. Selling out of a van eliminates this tax. It also allows them to drive to the customer, they can relocate to a busier place if the location they are currently set up at is slow. The drawback is it may be difficult to find if a returning customer is looking for them. Also, a stolen van equals a loss in their entire inventory.
2. Discuss site costs, retailing and office equipment, and other financial considerations of a mobile vendor such as Cookies-N-Cream.
A mobile vendor needs to have a reliable vehicle. A vehicle that breaks down will cost money to fix and also means they will lose out on a day’s work. Fuel costs must also be brought into consideration. A register and safe must be purchased that can run in the van. The van must also be customized so the store can be operational. This may cost some money to get it the way the owners want it to be. The owners also need to purchase licenses to sell in various areas. Each one of them cost a significant amount of money.
3. What legal considerations affect Cookies- N-Cream’s choice of location? How do those compare with the legal considerations of brick-and-mortar and home-based businesses?
Having a mobile business means the owners need to be sensitive to each area they enter to sell. Each location may have its own set of rules or laws, so they need to be knowledgeable in each. A brick and mortar store does not have to deal with varying rules. The same goes for home-based businesses. However a home-based business needs to be sensitive of the laws of operating out of a home. A business with large equipment can not run their business from a residential area.