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In: Operations Management

9.15 Bad News to Customers: Selecting Sturdy Stepper for Snap Fitness Gym (L.O. 1–4) You are...

9.15 Bad News to Customers: Selecting Sturdy Stepper for Snap Fitness Gym

(L.O. 1–4)

You are delighted to receive a large order from Lawrence Holder at Snap Fitness Gym. This order includes two Lifecycle Trainers (at $1,295 each), four Pro Abdominal Boards (at $295 each), three Tunturi Muscle Trainers (at $749 each), and three Dual-Action StairClimbers (at $1,545 each).

You could ship immediately except for one problem. The Dual-Action StairClimber is intended for home use, not for gym or club use. Customers like it because they say it is more like scaling a mountain than climbing a flight of stairs. With each step, users exercise their arms to pull or push themselves up. Its special cylinders absorb shock so that no harmful running impact results. However, this model is not what you would recommend for gym use. You feel Mr. Holder should order your premier stair climber, the LifeStep (at $2,395 each). This unit has sturdier construction and is meant for heavy use. Its sophisticated electronics provide a selection of customer-pleasing programs that challenge muscles progressively with a choice of workouts. It also quickly multiplies workout gains with computer-controlled interval training. Electronic monitors inform users of step height, calories burned, elapsed time, upcoming levels, and adherence to fitness goals. For gym use the LifeStep is clearly better than the Dual-Action StairClimber. The bad news is that the LifeStep is considerably more expensive.

You get no response when you try to call Mr. Holder to discuss the problem. Should you ship what you can, or hold the entire order until you learn whether he wants the Dual-Action StairClimber or the LifeStep? Or perhaps you should substitute the LifeStep and send only two of them.

Your Task Decide what to do and write a letter to be faxed to Lawrence Holder, Snap Fitness Gym, 1212 Bahama Drive, Richmond, KY 40475, using either negative or positive news response

Solutions

Expert Solution

38, Virginia Road

NY 78677

Date: 14 April, 2020

To:

Lawrence Holder,

Snap Fitness Gym,

1212 Bahama Drive, Richmond,

KY 40475

Subject: Information regarding Order No: MNP34255

Dear Lawrence,

This is in reference of the Order No: MNP34255. You have placed the order of 2 Lifecycle Trainers, 4 Pro Abdominal Boards, 3 Tunturi Muscle Trainers and 3 Dual-Action Stair Climbers. We have been trying to contact you regarding a clarification.

The Dual-Action Stair Climbers which you have ordered, is a home-use based equipment. Our premier starir climber, LifeStep will be more appropriate for your Gym requirement. LifeStep is a sturdier stair climber and has been designed for heavy use. The price of the equipment is marked at $2395. You can read the detailed description of the equipment in the attached brochure.

Do let us know your requirement and if you will need a modification in the order. Accordingly we will make the adjustments and ship the order.

Regards,

Tim K


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