MERCHANDISING TEST 4--IS CHAPTER 11 REVIEW Flashcards
MERCHANDISE»_space;»
GOODS THAT ARE BOUGHT AND SOLD LIKE»_space;»>CASKET–VAULTS–CLOTHING —URNS —REGISTRY BOOKS
WHAT IS MERCHANDISE PLANNING»_space;»
DEVELOPING A MERCHANDISE PLAN—-»»>ALSO KNOWN AS (SALES OBJECTIVES) OR (SALES PLAN)
PLANNING ======
PROFIT
PLAN COMPONENTS»_space;>MERCHANDISE»_space;»
SELECTION–COST AND PRICING–DISPLAY
- STEPS IN PLANNING
- EVALUATE THE MARKET 2. EVALUATE SALES HISTORY 3. DETERMINE PRODUCT AVAILABILITY 4. CONSIDER SUPPLIER RECOMMENDATIONS 5. ESTABLISH PRODUCT AND SERVICE MIX
VENDORS
PAYMENT TERM -AVAILABILITY OF PRODUCT–PRODUCT SUPPORT -QUALITY
CASH DISCOUNT
REDUCTION IN PRICE FOR PAYMENT OF ACCOUNT WITHIN TIME LIMITS MADE BY SALES CONTRACT
EXAMPLE»_space;»»
CASKET COMPANY INVOICES YOU WITH THE FOLLOWING——TERMS 2/10 NET 30
ABOVE MEANS FUNERAL HOME WILL
GET 2% DISCOUNT FROM CASKET COMPANY WITHIN 10 DAYS IF FH –DONT PAY THE INVOICE WITHIN 10 DAYS»_space;»FULL PAYMENT IS DUE IN 30 DAYS
QUANTITY DISCOUNT»_space;»
REDUCTION IN BILL WHEN A MINIMUM QUANTITY OF MERCHANDISE IS BOUGHT—DISCOUNTS ON 1. CASKETS–2. EMBALMING FLUID
REBATE
RETURN PART OF YUR PAYMENT
METHOD TO DETERMINE MERCHANDISE PRICE
MARKUP–CONSUMER VALUE INDEX–MERCHANDISE VALUE RATION–FIXED MULTIPLE–GRADUATED RECOVERY
MARK UP
DIFFERENCE BETW.. MERCHANDISE COST AND SELLING RETAIL PRICE
RETAIL - WHOLESALE =
==MARK UP
PROFIT MARGIN
RETAIL - WHOLESALE =
CVI CONSUMER VALUE INDEX
WHOLESALE / RETAIL
MVR–MERCHANDISE VALUE RATIO
LOOK AT EVERYTHING THAT THE FAMILY PAID YOU GOES TOWARD REPLACING THAT MERCHANDISE– EVERY DOLLAR FAMILY PAYS TO YOU GOES OUT TO REPLACE THAT MERCHANDISE
SERVICE FEE PRICING–(OVERHEAD)
STAFF SERVICES-PAPERWORK–(SALARIES, OFFICE SUPPLIES,UTILITIES,) SUM OF THESE COST DIVIDED BY # OF SERVICES)
MVR–
WHOLESALE COST / SERVICE AND MERCHANDISE
FIXED MULTIPLE
CASKET COST IS MULTIPLIED BY A CONSTANT FACTOR (NUMBER)
AVERAGE
SUM OF A GROUP OF NUMBERS DVIDED BY THE NUMBER OF UNITS
MEAN
AVERAGE
MODE
THAT APPEARS MOST FREQUENTLY
QUARTILE
GROUPING CASKETS INTO FOUR
RANGE
CASKET SOLD IN 2ND ..3RD QUARTILE
MARK UP
HIGHER PRICE CASKETS ARE GIVEN A HIGHER MARK-UP
DECLINING PRICE STRUCTURE
CVI GETS BETTER AS YOU GO UP—B/C THEY ARE GETTING MORE FOR THEIR MONEY B/C THEY ARE BEING CHARGED LESS AS THE PRICE GOES UP
MODIFIED
LESSENS THE MARKUP—–CVI IMPROVES AND THE MARK -UP IS LESS (ENCOURAGE PEOPLE TO BUY MORE ) PG 148
CASKETS ARE
DIVISION INTO FOUR GROUPS
SALES FREQUENCY
OF XS SALES IN A GIVEN PRICE BRACKET OCCUR OVER A FIXED PERIOD OF TIME…
ITEMIZATION
ALA CARTE —CHOOSING ITEMS SEPARATELY
UNIT PRICING–IS A FORM OF PACKAGE PRICING
GROUPS TOGETHER SELECTED SERVICES/MERCHANDISE—1. UNIT PRICING 2. BI-UNIT PRICING 3.FUNCTIONAL PRICING—-FTC– STATES ANY PRICING METHOD ACCEPTABLE IF FAMILY RECIEVES AN ITEMIZED GENERAL PRICE LIST…
