Unfortunately, reverse logistics – the system for handling returns & exchanges of hardware products – is not something on the forefront of a hardware startup’s agenda. In order to deal with defective products, one has to ship a product first – an all-consuming goal. However, leaving reverse logistics as a “we’ll fix it after we ship” detail could saddle the venture with significant unanticipated customer support costs, potentially putting the entire business model at risk. This is because logistics are much more efficient in the “forward” direction: the cost of a centralized warehouse to deliver packages to an end consumer’s home address is orders of magnitude less than it is for a residential consumer to mail that same parcel back to the warehouse. This explains the miracle of Amazon Prime, when overnighting a pair of hand-knit mittens to your mother somehow costs you $20. Now repeat the hand-knit mittens thought experiment and replace it with a big-screen TV that has to find its way back to a factory in Shenzhen. Because the return shipment can no longer take advantage of bulk shipping discounts, the postage to China is likely more than the cost of the product itself!īecause of the asymmetry in forward versus reverse logistics cost, it’s generally not cost effective to send defective material directly back to the original factory for refurbishing, recycling, or repair. In many cases the cost of the return label plus the customer support agent’s time will exceed the cost of the product. All communications will be treated in a confidential manner.This friction in repatriating defective product creates opportunities for unscrupulous middlemen to commit warranty fraud. We welcome the opportunity to discuss your particular case. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( Prior results do not guarantee or predict a similar outcome with respect to any future matter. On this news, the price of Xponential Fitness stuck plummeted by over $8 a share, or 31.8%, in intraday trading on June 27, 2023.Īttorney Advertising. In addition, the report alleged that the company's financials are less healthy than it has represented to investors, that it is likely violating its debt agreements, and, contrary to Geisler's claim that Xponential has "never closed a store", that there were many closed Xponential locations. The report stated that he'd been previously accused by former business associates of engaging in "scams" and "illegal business practices", and alleged that he has even in the past threatened others with a gun. The report alleged that Xponential's CEO, Anthony Geisler, "has a long history of misleading investors and business partners", including engaging in pump and dump schemes. On June 26, 2023, market analyst Fuzzy Panda Research issued a report entitled "Xponential Fitness (XPOF) - "Abusive Franchisor That Is A House of Cards". You may also click here for additional information: There is no cost or obligation to you.įaruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia. If you suffered losses exceeding $50,000 investing in Xponential stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 87 or 21 (Ext. ("Xponential" or the "Company") (NYSE: XPOF). September 10, 2023) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Xponential Fitness, Inc. Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Xponential To Contact Him Directly To Discuss Their Options
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