Exam 2 Study Guide Flashcards
The illumination resulting from the glow of a heated filament
Incandescent
When inventory is purchased which minimizes the total costs. the system employed is known as what?
Economic Order Quantity
Most sales objectives are based on what?
Sales History
Availability of products
Amount of profit
The funeral director’s ___________ is the ability to give a good presentation and answer questions presented to the family during the arrangement conference
Product Knowledge
When a supplier offers a reduction of the price given for payment of an account within the time limits established by the sales contract a ________ is given
Cash Discount
What is the alternative pricing group?
Low-, medium-, and high- priced units in one grouping
What do we need to do in the pre-selection room introduction?
Remain in compliance with the state and federal regulations
Give them GPL, CPL, Outer Burial Container Price List, and Facts About Funeral brochure
Provide the family with a subtotal of funeral home charges before they choose a casket
The purchasing, pricing, display and sale of the product is known as?
Merchandising
What are the 3 methods of casket grouping?
Consecutive
Material
Alternate
That group of caskets used when introducing the family to the display room
Demonstration Group
What is the Fixed Multiple equation?
Wholesale cost x Fixed Multiple = Selling Price
One total price for both services and merchandise
Unit Pricing
What is the equation for the CVI?
Wholesale Cost / Retail Price = CVI
What does CVI measure?
The value received for each dollar spent by the consumer
What does the CVI ensure?
Value progression
Priced by component part.
Professional services, transportation, facilities, merchandise, etc. etc.
Functional Pricing
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
Number that appears most frequently in a listing of numbers
Mode
What does the fixed multiple pricing entail?
No incentive to buy up
No improvement on CVI
What’s the equation for Merchandise Value Ratio?
Wholesale Cost / Service AND Merchandise
Price of service of caskets are listed separately
Bi Unit Pricing
The caskets sold in the 2nd and 3rd quartile
Range
Pricing structure where the markup varies
Higher priced caskets are given higher markup
Graduated Recovery
What is the advantage to Graduated Recovery?
Makes lower cost available
What are the disadvantages for Graduated Recovery?
- Lower CVI
- Low margin at low end
- Best value is at low end
The sum of a group of numbers divided by number of units
Mean
Measures the profit of each casket for the funeral home
Gross Casket Profit (Profit Margin)
Reflected illumination of an object defines ____________ lighting
Indirect
Light shining directly on an object
Direct Lighting
A style of presentation whereby the funeral director remains in the selection room with the family
Direct Selection Room Procedure
What are advantages to direct selection room procedures?
Families will have the support of the Funeral Director
We can better meet their needs
What are the disadvantages of the direct selection room procedure?
No privacy for family
Funeral Director may influence family’s choice
Nonverbal communication can help or harm
Funeral Director 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 funeral director
Signage with complete information about each casket
What are the advantages for the indirect selection room procedure?
Privacy for family
No funeral director influence
No nonverbal communication
No misinterpretation
Casket information can be studied
What are disadvantages for the indirect selection room procedure?
Some families will see the funeral director as support
Funeral director can’t answer questions
Casket information may be misunderstood
The illumination produced by a tubular electric discharge lamp; the fluorescence of phosphors coating the inside of a glass tube
Fluorescent Lighting
The itemized list given to the families when first meeting
General Price List
Number of units purchased to get a discount from the supplier
Economic Order Quantity
Inverse relationship between markup and price of casket
Higher priced casket given a lower markup
Declining Price Structure
What is the advantage of the declining price structure?
CVI improves on higher price caskets
What are the disadvantages to the declining price structure?
Low end markup may be too aggressive
Encourages consumer to buy better merchandise
1/4 of the total number
Quartile
When the funeral director is not required to pay for the merchandise that will be displayed until it is sold is called
Consignment
The number of times sales in a given price bracket occurs over a fixed period of time
Sales Frequency
Merchandise for resale
Inventory
