13. Merchandising Flashcards
Goods that are purchased from a wholesaler for sale to client families
Merchandising
The purchase, DISPLAY, and sale of goods
Merchandise
What are examples of types of merchandise in funderal service?
Caskets
Outer Burial Containers
Keepsakes
Cremation Containers
Rental Caskets
Cremation Jewelry / keepsakes
Register Book
Thank You Cards
Religious, Fraternal, and Military symbols
Tribute Videos
Monuments and Memorials
True or false:
Families will not be emotional and susceptible to sentiment?
False
True or False:
Families rarely buy the first casket they see
True
True or False:
Price will never be a factor
False
Families will respond to what they think is __________, ____________, and _____________ _________________
Simple, Elegant, and Priced Reasonably
Always be __________, _______________. and ____________ about ALL of your merchandise
honest, ethical, and knowledgeable
Which selection room is this:
- selection from a number of full size caskets on display
- 70% of funeral homes use this room
- usually 16-20 caskets
Traditional Selection Room
Which selection room is this:
- Corners or end sections mounted on a wall display
- Small number of full-size caskets on display
Fractional Display Room
What do we need to remember about digital display presentations?
Many caskets can be presented
Limited only by the number of caskets offered by the funeral home
What are catalogs?
Paper based presentation
Have all information and looks like digital presentation
What are things to consider when it comes to the location of the selection rooms?
In same building
Main floor
Near arrangement conference room
Psychological benefits to 2nd floor
Public elevator
Which lighting option is this:
The illumination produced by a tubular electric discharge lamp; the fluorescence of phosphors coating the inside of a glass tube
Florescent Lighting
Which lighting option is this:
Illumination resulting from a glowing, heated filament
Incandescent Lighting
Which lighting option is this:
Light shining directly on an object
Direct Lighting
Which lighting option is this:
Reflected illumination of an object
Indirect Lighting
A device on which 2 or 3 caskets can be placed for display
Casket Rack
Can be obtained from the casket manufacturer
- Sturdy
- Attractive
Casket Stand
Wheeled, collapsible support for casket
Used for church, funeral home, or any other location
Church Truck
National Board Exam:
What’s the number of caskets allowed in a selection room?
12-30
What is the space requirements for the selection room casket arrangements?
40-60 square feet for each casket
What is this:
Used to introduce selection room to client families
Inform families of casket construction
Features that affect pricing
Where description and price info is located
General room layout
Decide how director will proceed, stay in the room or wait outside
Demonstration or Educational Group
Which casket arrangement is Consecutive Method?
Caskets are arranged in order of increasing or decreasing price
Which casket arrangement is By Material?
Woods, steels, coppers, and bronzes
Basically like in title, by material
Which casket arrangement is By Alternating Pricing Groups?
Low-, medium-, and high-priced units in one grouping
What are selection room enhancements?
- Should be an inviting, non-intimidating room
- Attractive furniture grouping(s)
- Neutral paint color
- Artwork in soothing pastels
- Potted plants
- These guidelines serve to reduce stress for client families
What’s included in the pre-selection room introduction?
(REMEMBER TO BE IN COMPLIANCE W STATE AND FEDERAL REGULATIONS)
General Price List
Casket Price List
Outer Burial Container Price List
Facts about Funerals brochure
We must provide the family with a _________ of funeral home charges __________ they choose a casket
subtotal
before
How can we prepare the family for what they will be seeing in the casket selection room?
Number of caskets on display
Price range
Reason for broad price range
Types of caskets
How can we soften the shock of entering the casket selection room?
Have all lights on
Funeral Director enters first
Furniture grouping is in view
Demonstration group is near the door
A style of presentation whereby the funeral director remains in the selection room with the family?
Direct Selection Room Procedure
What are advantages to the direct selection room procedure?
- Families will have the support of the FD
- We can better meet their needs
What are disadvantages to the direct selection room procedure?
- No privacy for family
- FD may influence family’s choice
- Non verbal communication can help or harm
- FD can misread needs of the family
Casket presentation whereby the funeral director does not stay in the selection room
Indirect selection room procedure
What are the requirements for the indirect selection room procedure?
- Adequate pre-counseling by the FD
- Signage with complete information about each casket
What are advantages to the indirect selection room procedure?
- Privacy for family
- No FD influence
- No nonverbal communication
- No misinterpretation
- Casket information can be studied
What are disadvantages to the indirect selection room procedure?
- Some families will see the FD as support
- FD can’t answer questions
- Casket information may be misunderstood
What is CVI?
Consumer Value Index
What is the CVI equation?
Wholesale Cost / Retail Price = CVI
What does the CVI measure?
The value received for each dollar spent by the consumer
What does the CVI ensure?
Value progression
“If a buyer spends more, they should get more”
What does the Gross Casket Profit measure?
The profit of each casket for funeral home
What is the Gross Casket Profit (Profit Margin) equation?
Retail Price - Wholesale Cost = Margin
What is MVR?
Merchandise Value Ratio
What is the equation for the MVR?
Wholesale Cost / Service AND Merchandise = MVR
What is the equation for the Fixed Multiple (or Times Factor)?
Wholesale Cost x Fixed Multiple = Selling Price
Is there an improvement on the CVI in the Fixed Multiple?
No
What is this:
Pricing structure where the markup varies
Higher priced caskets are given higher markup
Graduated Recovery
What’s the advantage of the Graduated Recovery?
Makes lower cost available
What’s the disadvantages of the Graduated Recovery?
Lower CVI
Low margin at the low end
Best value is at the low end
What’s this:
Inverse relationship between markup and price of the casket
Higher priced casket given a lower markup
Declining Price Structure
What’s the advantage to Declining Price Structure?
CVI improves on higher price caskets
What are the disadvantages to Declining Price Structure?
Low end markup may be too aggressive
Encourages consumer to buy better merchandise
The sum of a group of numbers divided by number of units
Average (Mean)
A value in an ordered set of values which represents the midpoint, whereby there are an equal number of values above and below midpoint value
Median
What’s the median? (Example of even set of numbers)
70
80
100
120
140
200
110
Because 100 + 120 = 220 / 2
Number that appears most frequently in a listing of numbers
Mode
1/4 of the total number
Quartile
The caskets sold in the 2nd and 3rd quartile
Range
The number of times sales in a given price bracket occurs over a fixed period of time
Sales Frequency
A chart on which all sales are listed showing the number of sales in any sales bracket
Sales Frequency Chart
A method of pricing by which each unit of service and merchandise is priced separately
Itemization
Who requires us to have an itemized pricising system?
The FTC
One total price for both services and merchandise
Unit Pricing
Price of service of caskets are listed separately
Bi-Unit Pricing
Priced by component parts.
Professional services, transportation, facilities, merchandise, etc
Functional Pricing
A grouping of services and merchandise sold at a particular price
Package Pricing
Merchandise for resale
Inventory
Number of times inventory has been sold in a given period
Inventory Turnover
Number of units purchased to get a discount from the supplier
Economic Order Quantity (EOQ)
