Examples of Sell (Distribution Company) Costs
Avis is offering a program that allows customers to pay a three-month rate for the right to rent a car as many times as they want in that period. The program is designed for business travelers who visit several cities each trip. (
Year 1992-SIC 7514)
Explanation: Avis is attempting to reduce its Sell Costs by including several sales in one transaction.
Hertz, a unit of Ford, poured cash into a computerized yield-management system, which adjusts car rental prices based on anticipated demand. (
Year 1995-SIC 7514)
Explanation: The yield management system is part of the Sell Costs for Hertz.
Compared to smaller florists, mass merchandisers offer the same prices for flowers, but they offer more Convenience, longer hours and bigger floral displays. (
Year 1986-SIC 5900)
Explanation: Mass merchandisers are gradually squeezing out smaller flower retailers because the mass merchants offer more Convenience. The investments that the mass merchandisers have made in bigger floral displays and the expenses they incur for their longer hours of operation are part of their Sell Costs.
Customers at Circuit City's CarMax stores browse through the offerings from easy-to-use computer kiosks that print a photo, price, and specifications for any car selected. They also print the row of the parking space, so shoppers don't get lost in the huge inventory. (
Year 1995-SIC 5511)
Explanation: The investments and operating expenses Circuit City's CarMax stores have made in computer kiosks and software are part of the company's Sell Costs to help customers find, choose and pay for the product.
All of Casey's General Stores have self-service gas pumps. (
Year 1995-SIC 5411)
Explanation: The investment in self-service gas pumps is part of the Sell Costs at Casey's General Stores. The Company uses self-service as its mode of helping customers find, choose, and pay for the product.