Locate (Company) Cost
In the analysis of a wholesale or retail company's approach to managing functional costs, this term refers to the cost of finding and acquiring a site and constructing the building to hold the company's products.
(See also Functional Costs)
First Nationwide has been installing mini-branches in K-Marts.
(Year 1987-SIC 6021)
Explanation: First Nationwide is making small investments in already constructed buildings, reducing its Locate Cost.
To respond to the growth of Toys R Us, Toys Plus goes to small markets like Wichita Falls, TX and opens 12,500 sq. ft. stores (about 1/4 of the space of Toys R Us).
(Year 1985-SIC 5945)
Explanation: Toys Plus locates its stores in less expensive areas in order to compete with category killer, Toys R US. This reduces its Locate Costs.
In August of 2000, the CEO of Toys R Us helped negotiate one of the industry's boldest deals, a partnership between toysrus.com and Amazon.com, which should make the Toys R Us site profitable more quickly than it would be on its own. Amazon provides warehousing, order fulfillment, and site design. In exchange, it got warrants to purchase 5% of toysrus.com, as well as up-front cash payments and a share of the site's sales.
(Year 2000-SIC 5945)
Explanation: The partnership between toysrus.com and Amazon.com was part of the Locate Cost for Toys R Us.
To make that experienced-based formula work, the experience has to reflect the brand. The Sam Ash music store in Ontario Mills offers shoppers their own in-store performance space and the instruments to use in it.
(Year 1999-SIC 5999)
Explanation: The expenditures Sam Ash makes to create the performance space and the instruments to use in it are part of its Locate Costs.
Perhaps the most ambitious program yet is Simon Live Media, a co-venture between Simon Property Group and Time Warner's Turner Broadcasting System Inc. It aims to merge the experience of retail and e-tail through a network of kiosks
(Year 1999-SIC 5999)
Explanation: The money this co-venture spends on its network of kiosks is part of its Locate Costs.