Custom Vans, Inc., specializes in converting standard vans into campers. Depending on the amount of work and customizing to be done, the customizing can cost less than $1,000 to more than $5,000. In less than 4 years, Tony Rizzo was able to expand his small operation in Gary, Indiana, to other major outlets in Chicago, Milwaukee, Minneapolis, and Detroit.
Innovation was the major factor in Tony’s success in converting a small van shop into one of the largest and most profitable custom van operation in the Midwest. Tony seemed to have a special ability to design and develop unique features and devices that were always in high demand by van owners. An example was Shower-Rific, which was developed by Tony only 6 months after Custom Vans, Inc., was started. These small showers were completely self-contained, and they could be placed in almost any type of van and in number of different locations within a van. Shower-Rific was made of fiberglass, and contained towel racks, built-in soap and shampoo holders, and a unique plastic door. Each Shower-Rific took 2 gallons of fiberglass and 3 hours of labor to manufacture.
Where would you locate the two new plants? Why?