Surfside Leisurescape

Course Test

Surfside Leisurescape

Surfside is one of the Hot Tub retailers in Newmarket, Ontario. The company started its business in 1983 and since then the company had progressing in business until 2004 when there were a warm weather during the year which was not suitable for the business, and the flow of the competitors in the area which caused the sales and the revenue to decline.

Since the Newmarket is a small area with a population of under 100 thousand, also the company is not very far from Toronto where many larger retailers are located; the company is struggling to increase its sales in order to cover all the costs and make some profit for the owner and be competitive in the market.

The company has diverse motivated team working and is organized with same objectives and goals for the company. They all share the same dedication to maintain customer service relationships and provide their consumers with the best innovated ideas for Hot Tub design and manufacturer. Employees of the Surfside are experienced in a way that they can offer all types of providing support for the consumers.

The company has the opportunity to provide discount and in home services for their loyal consumers.

At the moment the company is trying to discontinue one of the products they are selling because they have only one sales person, and hiring another sales person will cost the company $30,000 to $40,000 plus the commission they have to pay, there are many alternatives that the company can consider in order to keep the company running with making profit for the owner. These alternatives are as follows:

Pacific, one of the manufacturers of the Hot Tub offers the 25th Hot Tub for free to the company, this is the best opportunity for the company to order 24 hot tubs at the same time and can give discount to its first time customers so the customers know that they will save money when purchasing from the Surfside.

Also, the company can pay for its accounts payable as soon as they could to get the possibly discount from the manufacturers as most of the companies offer a 2% discount when they receive the accounts payable within 10 days of the sales. This also can help Surfside to be able to give its customers a discount and increase the sales.

One of the most effective ways to get more customers is to accept financing the Hot Tub in monthly payment as the people in the area has the average salary of $39,500.00 which means that customers will be able to pay their debt on time with little or no default.

As the company is wondering to know if they should keep the two types of Hot Tub they are selling now or discontinue one of them because they need one more sales person and by hiring another sales person their income will decrease by $30,000 to $40,000 plus the commission they are going to pay.

My recommendation it to keep both types of the Hot Tubs because the more variety of Hot Tub the company offers, the more consumers will be attracted to their company.

The action plan is to hire one more experienced sales person for the company and pay a competitive wages and commissions, so the sales person will bring more customers in and increase the sales to cover the cost associated with hiring the new sales person.