How can they do this? (And how long will they be able to keep it up?)
eMail regarding "In Stock Guarantee" - Source: pricepoint.com |
The "Fine Print"of the "In Stock Guarantee" - Source: pricepoint.com |
It is relatively easy to achieve 100% fulfillment. You just need to order more than you think that you'll sell. But there is a cost to ordering those large quantities of merchandise. You will have lots of cash tied up in inventory and you'll need a bigger warehouse.
As a buyer I was trying to achieve an overall fulfillment rate of of 95+ percent. For low cost items I tried to reach close to 100%. (The cost of making additional shipments of low cost items could exceed the revenue from the items.)
Pricepoint is a web-based retailer selling bicycles, bicycles parts, accessories, and clothing. The prices range from a few dollars to $4.399.98 for a carbon-framed 29er mountain bike. It will be interesting to see how long Pricepoint will continue this guarantee and how the competition will respond.
Labels: bicycles, guarantee, in stock guarantee, mail order, Pricepoint
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