Академический Документы
Профессиональный Документы
Культура Документы
customers can track the delivered products and their conditions. One of the worlds largest package delivery companies UPS also provides tracking service. Customers can simply type in their orders number in UPSs website and then the condition of parcels will be clearly shown. [1] This tracking system can help to reduce customers worries too so that they will not complain irrationally and company can use less resource to handle these unnecessary complaints. 3. Use of postage-paid is obvious that it is easier and convenient for customers to response. Besides, if your response rate is high, there will be a discount offered by postal service providers. However, this will bring the company extra cost as most postal service providers will charge you processing fees. [2] While for asking customers to add a first-class stamp, this is not customer-friendly and this will affect the customer response rate badly. However, this will not bring the company extra cost. In case of Cheezy Wheezy, it should use the postage-paid method if it expects a high customer response rate. If their response rate is high enough, the money saved by discount can compensate the processing fees required. Besides, use of postage-paid method can also encourage customers response too. Therefore, Postage paid type is definitely better for Cheezy Wheezy if its market is large enough. Otherwise, asking customers to prepare their own stamps is a more suitable way. 4. It is suggested to charge packaging fee by pounds per package. That is for different pounds, there would be a corresponding fee. The following table is an example. Pounds per Package 1 2 Packaging fee($) 0.5 0.7 Pounds per Package 3 4 Packaging fee($) 0.85 0.95
If the amount of pound is not integer like 2.5pounds, then the packaging fee would be counted as that of 3 pounds. In this way, the packaging fee is easy for customers to understand and the company can charge enough to cover the cost of packaging and extra transportation cost due to the weight of packaging. This is much fair for customers as they really get 3 pounds of cheese but not 14 ounces of cheese and 2 ounces of packing material. In addition, this pricing system can also minimize the impact on both packaging and transportation cost if customers order, say 4 pounds of cheese and want to pack it into 2 pieces of 2-pounds cheese. As the packaging fee is charged per package, the packaging fee of 2 pieces of 2-pound cheese would be 2x0.7 =$1.4 but not $0.95. 5. It is suggested to charge transportation cost by absorbing the costs into product
price and charging by money value of order. For example, over a certain amount of money value of order, say $19.9, customers need not to pay extra transportation costs. Over $19.9, savings due to larger shipment size will be able to absorb the transportation cost as well as variations due to differences in location(tapers). While for orders under $19.9, customers need to pay an extra fee to cover the transportation costs. A cheese company in USA also uses similar pricing system to charge customers transportation costs. [3] This pricing system is simple and easy for customers to understand. It can minimize the problem of tapers as well. Most importantly, it can encourage customers to purchase more. 6. Types of Shipping Cost Packaging costs Cover the cost of packaging material and its extra burden on transportation Charged by Pounds Per Package ( See Table in question 4) Examples: One 4-pound Cheese : $0.95 Two 2-pound Cheese : 2x0.7 = $1.4 Charged by money value of orders: - Free for order value over $19.9 - $5 for order value below $19.9 Nature Ways of Charging
Transportation Cover the delivery cost, order costs processing cost and other overheads of products
7. The online order form will be more detailed than the printed and mailed one. The printed and mailed one is made as simple as possible because customers will feel confused and inconvenient it is too detailed and complicated. However, for the on-line one, customers can read the detailed information and proceed one page by page easily without any confusion. Besides, in the internet, there is no problem like taking up valuable selling space. In order to be customer-friendly and save space for advertisements, the shipping cost charging system is simplified as mentioned in question 4 and 5. However, if internet is used for a platform of ordering, the above problems can be avoided. Customers can simply input their orders and address and then the computer can calculate the shipping costs for customers. The tapers will not be a problem anymore and customers need not to read those complicated maps and tables anymore too. References: [1] UPS official website - http://www.ups.com/asia/hk/hkgindex.html [2] United States Postal Service - http://www.usps.com/replymail/rates.htm [3] The Cheese Big A Cheese Company in USA - http://www.thecheesegig.com