Business Proposal
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Final Proposal - Retail Paper
Tiffani Butler
ECO/561
March 20, 2014
Anthony Forbers
Business Proposal
Businesses are constantly looking for ways to improve business. N-B-Tween Retail and Consignment Shop present a new, but familiar way of doing business. This business will be a retail and consignment shop selling women’s apparel. The shop will provide quality women apparel in specific sizes. This shop will offer clothing for the average size woman. Sizes 12 to 16 will only be available at retail and consignment price options. Experience has proven that the demand for these sizes is high. When prices there is a clearance sale or a price reduction, these size options are usually unavailable. Moreover, there are retailers that specialize in size options, but also sell out of these sizes too. For ease of explanation, this paper will only highlight jeans.
Market Structure
Clothing stores are likely to be monopolistic competition due to the difference in the design and size availability of the clothes stocked and sold. There are thousands of women clothing stores in Michigan, and the Yellow Pages list approximately 300 located in Detroit (“Yellow Pages”). However, jeans of a particular design in the right size may be found at one store and unavailable at another. If they are available, it may require long travel time to a store that has it. Each store can be unique, and customers are likely to buy stores of their preference such as Macy’s or Norstroms. Hence, each of these stores behaves like monopolistic competition. Elasticity of Product
Today’s market economies rely on the activities of consumers, businesses, and resource suppliers to allocate resources efficiently. The law of demand tells us that, other things equal, consumers will buy more of a product when its price declines and fewer when its price increases (McConnell, Brue, & Flynn, 2009). In clothing retail, consumers are highly responsive to price changes....
Tiffani Butler
ECO/561
March 20, 2014
Anthony Forbers
Business Proposal
Businesses are constantly looking for ways to improve business. N-B-Tween Retail and Consignment Shop present a new, but familiar way of doing business. This business will be a retail and consignment shop selling women’s apparel. The shop will provide quality women apparel in specific sizes. This shop will offer clothing for the average size woman. Sizes 12 to 16 will only be available at retail and consignment price options. Experience has proven that the demand for these sizes is high. When prices there is a clearance sale or a price reduction, these size options are usually unavailable. Moreover, there are retailers that specialize in size options, but also sell out of these sizes too. For ease of explanation, this paper will only highlight jeans.
Market Structure
Clothing stores are likely to be monopolistic competition due to the difference in the design and size availability of the clothes stocked and sold. There are thousands of women clothing stores in Michigan, and the Yellow Pages list approximately 300 located in Detroit (“Yellow Pages”). However, jeans of a particular design in the right size may be found at one store and unavailable at another. If they are available, it may require long travel time to a store that has it. Each store can be unique, and customers are likely to buy stores of their preference such as Macy’s or Norstroms. Hence, each of these stores behaves like monopolistic competition. Elasticity of Product
Today’s market economies rely on the activities of consumers, businesses, and resource suppliers to allocate resources efficiently. The law of demand tells us that, other things equal, consumers will buy more of a product when its price declines and fewer when its price increases (McConnell, Brue, & Flynn, 2009). In clothing retail, consumers are highly responsive to price changes....