Foxy Originals

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Foxy Originals 1. Discuss the pros and cons to launching the Foxy brand in the U.S.
Pros: Kluger and Orol had established strong Foxy jewelry market in Canada but it is getting saturated. By expanding into the United States Foxy would be able to avoid oversaturation of the Canadian market. The U.S. jewelry market was almost 10 times larger than the Canadian market which offers great opportunity for their product exposure. With this expansion, Kluger and Orol could expand their production as well as possibly begin developing new product lines. Foxy is currently experiencing a steady growth period in sales so expansion to a new market at this time would be a good way to capitalize on this growth. By expanding into the US Foxy could
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Do the variable costs for both products (necklaces and earrings) differ between trade shows and sales rep strategies? Yes, the variable costs for both products differ between trade shows and sales rep strategies. Variable cost per order is greater in the sales rep strategy compared to that in the trade shows strategy because of the added sales rep commission in the former strategy. The commission is 15% of the sale to the retailers. The sale price to the retailer is $17 for the necklace and $12 for the earrings. The increased variable cost would then be $2.55 and $1.80, respectively, when compared to the trade show strategy.

6. Calculate the variable costs per order received at a trade show and the variable costs per order received through a sales rep.

Variable Costs | Trade shows | Sales rep strategy | per necklace | | $ 8.05 | | $ 8.05 | | per earring pair | $ 5.50 | | $ 5.50 | | Production costs per order | $ 267.25 | | $ 267.25 | | Shipping per order | $ 15.00 | | $ 15.00 | | Sales rep.
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