Question

7.11Customer Bad News:

Putting the Brakes on Bakery Deliveries (Objs. 1–4) As the owner of La Boulangerie Bakery in Baton Rouge, Louisiana, you have a devoted clientele savoring your delicacies. Your salty caramel cupcakes offer an irresistible salty-sweet flavor combination using fleur de sel crystals hand harvested from the pristine seas off Brittany, France. These salt granules complement the sweet buttery caramel that flavors both the cake and frosting. Although your cupcakes are a trendy hit, you also feature delicious cakes, squares, cookies, croissants, and bread. Your bakery has a medium-sized storefront; however, most of your business comes from supplying local restaurants and coffee shops with your tantalizing treats. You own two trucks that make deliveries to customers throughout the Baton Rouge metropolitan area. Although La Boulangerie is financially successful, rising costs have severely undercut your profits over the past few months. You know that you are not the only business owner dealing with rising prices. Many of your suppliers have raised their prices over the past year. Specifically, the higher prices of wheat and sugar have resulted in a drastic increase in your production costs. Previously, you did not charge for deliveries made to your wholesale clients. However, you now feel that you have no choice but to add a delivery charge for each order to cover your increased costs and the rising price of gas.

Your Task. As the owner of La Boulangerie Bakery, write a letter to your wholesale clients in which you announce a $20 charge per delivery. Try to think of a special offer to soften the blow. Address the first letter to Mr. Emil Broussard, Café Broussard, 2013 West Lee Drive, Baton Rouge, LA 70820.

Answer 1

To,

Mr. Emil Broussard

Café Broussard

2013 West Lee Drive

Baton Rouge, LA 70820

Date: 19/11/2018

Subject: Introduction of delivery charges on account of increased production costs and rising price of gas

Dear Mr. Emil Broussard,

Greetings for the day! Thank you for being a loyal customer of the La Boulangerie Bakery and serving your customers with our tantalizing treats.

This is to bring to your notice that price of wheat and sugar are rising which is consequently increasing the production costs of La Boulangerie Bakery. Most of our suppliers have also raised their prices over the past year. These rising costs have severely impacted our business by undercutting the profits significantly. Therefore, on account on the aforementioned rise in prices and rising price of gas, La Boulangerie Bakery plans to introduce delivery charges of $20 per delivery from its wholesale clients. We have taken this move in order to keep the business financially stable and viable in the long run.

However, for our loyal and long-term wholesale clients, we have subscription packages for delivery. Please find below the attractive offers:

• $250 delivery charges for a month for a maximum of 15 deliveries.

• $750 delivery charges for 3 months for a maximum of 50 deliveries.

• $1500 delivery charges for 6 months for a maximum of 120 deliveries

Hoping to do business with you in the long run. Thanking you for your cooperation as always.

Regards,

Mr. Jacob Gigi

La Boulangerie Bakery

Baton Rouge, Louisiana

70820