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Essay / Research Paper Abstract
A 5 page paper assessing several points of economic consideration regarding the operation and potential expansion of a small, one-location swimming pool service and supply business. Questions address topics including elasticity of demand; law of diminishing return; economies of scale; potential price strategies; and business expansion possibilities. EPS is in an ideal position to enhance its business results without the need for a great amount of additional effort or cost. The paper recommends it increase its number of commercial accounts and increase retail sales. Bibliography lists 4 sources.
5 pages (~225 words per page)
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Unformatted sample text from the term paper:
Pool Company (EPC) is a small, one-location local service and retail company. Its core business is servicing pools in the local area, primarily for individuals although it does have
one commercial account. The company maintains a single retail location from which it sells pool supplies, chemicals and equipment to customers who buy such items in small quantities and
at full retail prices. The purpose here is to assess the economic value of several prescribed points of consideration. Nature of the Customers
EPCs most definitely are not all the same. None of its service-contract customer tend their own pools; all of its retail customers do. Service customers are contractually
bound to EPC, at least for the current season or current month. Retail customers come and go at will; Wal-Mart provides intense competition in basic chemicals (i.e., chlorine, algaecide,
pH adjusting formulations) during the summer months. Elasticity of Demand and the General Market Environment Clearly, there is no market for EPCs goods
or services during the winter months. Many operate under the erroneous assumption that caring for a pool is difficult and surrounded in mystery; many of those choose to hire
service companies to provide all labor for care. EPC adds chemicals, but the case does not state whether it adds chemicals provided by the customer or those provided by
EPC as an included service item. Either way, every pool must be kept in balance throughout the entire time it is used during
the year. If the pool is open, then it must be serviced. Pool owners have no choice in whether to use chemicals, only in whether to use a