Joe's Books

Joe's Books - Joes Conventional Bookstore vs. in...

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Joe’s Conventional Bookstore vs. in Today’s Economy Today’s marketplace is vastly different from that of even twenty years ago. I will use ‘Joe’s Conventional Bookstore’ and compare it with today’s to illustrate the differences. Is Joe’s bookstore something that has seen its day and should go the way of the dinosaur? ‘Joe’s Conventional Bookstore’ is a company created by ‘Joe’ in Main Street, USA. Joe’s store is in a typical storefront in town and is run by none other than Joe and his wife Sarah. Joe rents the store and must purchase books as needed to keep the store stocked. He is not wealthy and cannot get a business loan at the bank because it is a bookstore and they are not known for being very profitable. In addition, the economy is bad and banks aren’t loaning money out to many people these days. So, the latest books are not on his shelves right away, unless you order and pay for them in advance. This enables Joe to order and buy the books from the publisher earlier than he usually can afford to do so. Joe does not buy enough quantity to warrant wholesale prices from the publishers and clearinghouses. The latest and greatest books, after all are rather expensive and the larger bookstores and websites get first pick. Joe’s store is well known for its used book section, however. In this section you can get a bag of paperbacks for the cost of one or two new ones! He even has some rare books, but he doesn’t have a very reliable inventory so Joe prefers people just to come in and look at his ‘rare book section’ back in the used book area. Joe has three employees. One who helps sweep and neaten the shelves at the end of a long day. His name is Dan and he is a High School student. Dan loves to read and was a customer in Joe’s store from the time he was small. In fact, Dan began neatening the shelves in the store before he was paid to do so. This is why Joe hired him in the first place. Dan never did have to apply for the job at all. So, Joe’s main expenses are the cost of the store itself: rent, electric, gas, water and garbage. He then takes some money to live on, so you could call that a salary for Joe, but his wife donates her time and raises their children as well. Dan makes minimum wage. The other two employees are Shayla and Dallas. They also are High School students make minimum wage. They are Joe’s cashiers and they also do some stocking of the merchandise, as necessary, and try and keep the storage area clean. They are part time employees as well. The two girls work mostly to give Joe time to make orders and do some other financial and managerial duties., on the other hand, is a company through whose website may find and purchase everything
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This note was uploaded on 01/12/2011 for the course MBA 502 taught by Professor Nicolasa.pologeorgis,ph.d. during the Spring '10 term at Jones Intl..

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Joe's Books - Joes Conventional Bookstore vs. in...

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