Bicycle Store 2Wheels Notices That It Has a High Proportion

question 115

Essay

Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but doesn't want to terminate the customer relationship. What can 2Wheels do to make these customers more profitable?

---

Definitions:

Planning Budget

An estimated financial plan used primarily for strategic and operational planning within an organization.

Units

Basic quantities or entities used as a standard of measurement for inventory, production, or other business processes.

Selling and Administrative Expenses

Costs that are not directly tied to the production of goods or services, including marketing expenses, salaries of sales personnel, and management salaries.

Client-Visits

The act of meeting clients in person for business purposes, such as providing services, building relationships, or making sales.