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BUSINESS DEVELOPMENT 3

Green Drive Logistics Company

Institution: ENTREPRENEURSHIP

Student’s name:Reem Alogaidi

Date: 24/05/2020

Green Drive Logistics Company

Customer relationship

Green Drive Logistics advocates for a personal relationship with its customers. To acquire customers for our products, a business can rely on our channel strategies (Ingene & Brown, 2018). We shall encourage our retailers to join our website. The retailers will be given an opportunity to place orders through the company’s website. We will maintain our customer base by offering monthly discounts for every single order that is placed via the website and is above 300 kilograms. To grow our customer base, we shall print the company’s website details on the packaging boxes and also print company’s catalogue. The catalogues will be personally handed to the customers by our supplying team during delivery. The co- drivers who usually engage our customers are encouraged to explain an overview of the catalogues to the retailers and encourage them to distribute them to their customers in the stalls.

Revenue streams

Green Drive Logistics will use the asset sale model and the markup model to generate revenue for the business. The asset sale model will reduce the losses that are associated with returns on purchases. The retailers acquire total ownership of the goods that are supplied to them and it is upon them to figure out how best to quickly sale the products to the final consumers. The markup model is one of the oldest revenue models and it has proven to be very successful in whole sale business (Born & Pfeifer, 2019). The company has set a reasonable markup target of 40%. The markup price will ensure that the business realizes a reasonable profit after deducting the total cost that is associated with its supplies.

Reference

Born, B., & Pfeifer, J. (2017). Uncertainty-driven business cycles: assessing the markup channel.

Ingene, C. A., & Brown, J. R. (Eds.). (2019). Handbook of Research on Distribution Channels. Edward Elgar Publishing.