Big Al 's Hourly Rate Up At $ 350 Per Hour For The Three Movers And A Truck

997 Words4 Pages
I would increase Big Al’s hourly rate up to $350 per hour for the three movers and a truck. The business could be relocated to a location with lower costs, and a 60-month lease in order to lock in their rates. The number of trucks could be decreased to six, which would increase the effective utilization of available assets. They could reduce their surplus of labor, which in concert with reducing the number of trucks, would increase their profit margins substantially. In order to maintain their current level of business with the increased prices, they could increase their advertising budget as well, to educate the consumer.

After doing market research on Fairfield County based movers, I found that the hourly rates for three movers and a truck varied from $130 to $212, exclusive of packing fees and fuel surcharges. Two companies were able to provide estimates of 75 percent and 100 percent of the cost of the move for packing fees. The prices obtained for the two full service companies were $260 and $330. The majority of companies contacted noted that there were a variety of additional charges that were frequently tacked on to a move, such as additional costs for navigating stairwells and for having to carry boxes across lawns. This, along with Big Al’s high conversion rate of calls to contract, suggests that the total level of business could be maintained at all inclusive rate of $350 per hour, increasing revenue by 16.67 percent to $3,500,000.

The business is also over
Get Access
Related

  • Monsanto: Better Living Through Genetic Engineering

    96204 Words  | 385 Pages

    The case of Cochlear™ – an Australian C A S E O N E high-technology leader Delta Faucet: Global entrepreneurship in an emerging market C A S E T W O DaimlerChrysler: Corporate governance dynamics in a global company C A S E T H R E E Gunns and the greens: Governance issues in Tasmania C A S E F O U R Succeeding in the Sydney indie music industry C A S E F I V E Nucor in 2005 C A S E S I X News Corp in 2005: Consolidating the DirecTV acquisition C A S E S E V E N Shanghai Volkswagen: Implementing

    Read More

  • Introduction to Materials Management

    169665 Words  | 679 Pages

    From the Library of Girro From the Library of Girro@qq.com Introduction to Materials Management SIXTH EDITION From the Library of Girro J. R. Tony Arnold, P.E., CFPIM, CIRM Fleming College, Emeritus Stephen N. Chapman, Ph.D., CFPIM North Carolina State University Lloyd M. Clive, P.E., CFPIM Fleming College Upper Saddle River, New Jersey Columbus, Ohio From the Library of Girro@qq.com From the Library of Girro Editor in Chief: Vernon R. Anthony Acquisitions Editor:

    Read More

  • Management Course: Mba−10 General Management

    215330 Words  | 862 Pages

    clearly under enormous stress. To maintain business growth and a sustained economy, it is essential for managers to understand and find solutions for these and other fundamental wide-ranging issues. The bursting of the high-tech bubble both in many start-up companies and in major segments of established firms dissipated many entrepreneurial efforts and the large sums of money that were spent to create organizations that never earned a profit and were often hugely unsuccessful as business entities. However

    Read More

More about Big Al 's Hourly Rate Up At $ 350 Per Hour For The Three Movers And A Truck

Get Access