Klicker Chapter 11 Flashcards
The percentage derived by dividing the wholesale amount of the merchandise by the retail price of the merchandise
Consumer Value Index
CVI =
Wholesale Cost / Retail Price
Measures the value received for each dollar spent by the consumer
CVI
Gross Profit Margin =
Retail Price - Wholesale Cost
Measure profit of each casket to the funeral director/firm
Gross Profit Margin
The relationship between the wholesale cos of the merchandise and the total cost of both service and merchandise to the consumer
Merchandise Value Ratio
MVR =
Wholesale Cost / Service and Merchandise
A price determination method whereby the mark-up is multiplied by a constant factor; same mark up is applied to all caskets
Fixed Multiple of Times Factor
The sum of a group of numbers divided by the 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 the midpoint value
Median
The number that appears most frequently in a listing of numbers
Mode
A division of the total into four intervals, each one representing one-forth of the total
Quartile
The caskets sold in the 2nd and 3rd quartile
Range
In a display room that contains 22 caskets, describe the quartile
1st: 10% = 2.2 or 2
2nd: 27% = 5.9 or 6
3rd: 40% = 8.8 or 9
4th: 23% = 5.06 or 5
67% of caskets are in the range - most will buy out of the 2nd and 3rd quartiles
The FTC requires that funeral directors use this pricing system
Itimized
A method of pricing by which each unit of service and merchandise is priced separately
Itemization
A method of price quotation which creates one total price package for both service and merchandise
Unit Pricing
A method of price quotation showing separately the price of the services and the price of the casket
Bi-Unit Pricing
A method of price quotation by which the charges are broken down into several component parts, such as professional service, facilities, automobile, and merchandise
Functional Pricing
A method of price quotation where certain items of service and merchandise are grouped together and sold at a specific price
Package Pricing
Factors which influence pricing
Competition's price policies Legislation Production costs Distribution costs Economic fluctuations Type of merchandise Marketing strategy Purchasing practices Selling costs Value
Difference between merchandise cost and selling price
Mark Up
Reduction of selling price
Mark Down
