Packet- Funeral Merchandise Pricing

Question 1

The difference between merchandise cost and selling price.

Answer 1

Markup

Question 2

The percentage derived by dividing the wholesale cost of the merchandise by the retail price of the merchandise.

Answer 2

Consumer Value Index (CVI)

Question 3

Wholesale Cost / Retail Price =

Answer 3

CVI

Question 4

The relationship between the wholesale cost of the merchandise and the total cost (both service and merchandise) to the consumer.

Answer 4

Merchandise Value Ratio (MVR)

Question 5

Wholesale Cost / (Total of merchandise and services)=

Answer 5

MVR

Question 6

• Fixed dollar amount
• Fixed multiple
• Percent
• Graduated recovery
  
  • Increasing graduated recovery
  • Decreasing (declining price structure)
  • Modified graduated recovery

Answer 6

Pricing Strategies

Question 7

Pricing so that actual price figures are familiar to the consumer. Typically ends in 5,7,9, or 0.

Answer 7

Consumerized Pricing

Question 8

• Competition’s price policies
• Legislation
• Production costs
• Distribution costs
• Economic fluctuations
• Type of merchandise
• Marketing strategy
• Purchasing practices
• Selling costs
• Value

Answer 8

The Price of the Funeral is Influenced by:

Question 9

• Average (mean)
• Median
• Mode
• Range

Answer 9

Sales Analysis

Question 10

The sum of a group of numbers divided by the number of units.

Answer 10

Average (Mean)

Question 11

A value in an ordered set of numbers which represents the midpoint, an equal number of values above and below the midpoint value.

Answer 11

Median

Question 12

The value that occurs the most frequently in a group of numbers.

Answer 12

Mode

Question 13

The upper and lower limits in a series of numbers. Subtract the lowest number from the highest to find this.

Answer 13

Range

Question 14

• Traditional Selection Room
• Distributor Showroom
• Catalog
• Computer based display
• Many funeral homes use a combination of these things.

Answer 14

Ways to Display Merchandise

Question 15

• Control over merchandise offered and the manner of display.
• Minimal inconvenience for consumer.
• Merchandise tangibly displayed.

Answer 15

Advantages of the Traditional Selection Room

Question 16

• Overhead expense is increased
• This higher overhead is reflected in the bill
• Use of valuable floor space.

Answer 16

Disadvantages of Traditional Selection Room

Question 17

• Overhead reduced
• This translates into either reduced consumer expense of increased funeral home profit.

Answer 17

Advantages of Distributor Display Room

Question 18

• Trip to the showroom may not be convenient for consumer
• Possible delivery problems
• Funeral home has little say in product offerings
• May be necessary to schedule an appointment

Answer 18

Disadvantages of Distributor Show Room

Question 19

• Overhead expense is reduced
• For some consumers- easier emotionally
• Useful tool when making arrangements in the home.
• May be able to offer greater range of merchandise.

Answer 19

Advantages of Using a Catalog

Question 20

• Difficult to discern value through a photo
• Extra attention to good presentation
• Catalogs with less-than-professional appearance may reflect negatively.

Answer 20

Disadvantages of Using a Catalog

Question 21

• Less threatening to some consumers
• Reduced overhead
• Inventory checks and product ordering may be performed instantly

Answer 21

Advantages of Computer Based Display

Question 22

• Some consumers not comfortable with computers- particularly the elderly.
• Initial investment is substantial
• Product delivery/availability may be an issue.
• Funeral Director must deliver a thorough product presentation.

Answer 22

Disadvantages of Computer Based Display