Fitness Retreads

1. What are the general challenges and issues faced by organizations attempting to establish viable recycling and refurbishing operations?

General challenges and issues faced by organizations attempting to establish viable recycling and refurbishing operations are costs involved, storage issues, demand, transportation, supply, and competition.

2. What specific challenges and issues do you envision for Fitness Retreads, LLP?

Specific challenges and issues I envision for Fitness Retreads, LLP, are costs involved such as replacement parts to refurbish the equipment, pay for technicians, advertisements, and will the money they make from selling the equipment make the endeavor profitable after these costs. Another issue will be do they have the space to store and display the equipment for sale. Will there be a demand for refurbished equipment and how will they obtain more equipment to refurbish? Will there be a warranty period if the equipment breaks after the sale. Will they need to transport equipment? Is the equipment worth fixing? Will there be additional taxes or permits required to sell the equipment. How much will they charge? They will face threat of competition. Lastly, they have one partner who is not sold on the idea of selling refurbished exercise equipment (Coyle, Langley, Gibson, Novack, & Bardi, 2009, p. 642).

3. What are the potential sources of supply for Fitness Retreads, LLP? What challenges will it face for retrieving equipment that it locates for refurbishing?

Potential sources of supply for Fitness Retreads, LLP, can come from various sources. First they buy new equipment to replace an older model they can refurbish their old equipment. They can watch for other small gyms that sell equipment due to business failure. They can advertise that they will accept and/or remove unwanted equipment, hopefully for free. They might be able to get equipment that did not sell from department stores. They can contact other gyms to get their old equipment.

Fitness Retreads, LLP, can face challenges retrieving equipment it locates for refurbishing because they may not have the transportation vehicle needed for the equipment. They will have to designate manpower, time, and money to pay for wages and vehicle expenses associated with the pick-up of equipment. They may have to disassemble the equipment to move it. Lastly, they will need a place to store and refurbish the equipment. .

4. What are the potential market segments for Fitness Retreads, LLP? What challenges does it face in selling and distributing its refurbished equipment?

Potential market segments for Fitness Retreads, LLP, are small new start-up gyms looking for used equipment and the consumer. The consumer market is the largest market with over 80% of equipment sold is for home use. Used exercise equipment is a growing market,