Merchandise Buying and Handling • Physical purchase of products and services • How those products and services are brought to the retail outlet, handled, and finally placed ready for sale 9-6 . Each industry has standards for Gross Profits that must be met in order to have enough cash flow to meet payroll, other operating expenses, marketing, and still … Inventory at Cost) • (Gross Margin/Average Inventory at Cost) • Note that (Sales/Dollars Invested) is not the same as inventory turnover, because inventory turnover is (Sales/Dollars Invested at retail) • We use cost because it measures investment activities in carrying inventory. • Formula: • (Gross Margin/Net Sales) x (Net Sales/Avg. • Works best with an annual turnover of six or more • BOM Stock = Avg. Basic Stock Method • Allows for a base stock level plus a variable amount of inventory that will increase or decrease at the beginning of each sales period (e.g., month) in the same dollar amount as the period’s expected sales. Four Constraining Factorsof the Merchandise Mix. • Maintain space productivity, while not congesting the store. conceptual chapter objectives. It’s the grouping together of merchandise in a vertical column or display in such a way as to get your customers to buy more products. developing merchandise plans. Your customers will all be retail buyers, and they will pay the full retail price for your merchandise. See our Privacy Policy and User Agreement for details. chapter 12. learning objective 1. figuring adjustments for, CHAPTER ELEVEN - . Chapter 10 Buying and Disposing - . Looks like you’ve clipped this slide to already. overview. buyer behavior. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. • Buying the wrong type of merchandise or buying merchandise that is too trendy. licensed and branded merchandise. Solutions to end of chapter questions Chapter Nine:Merchandise Buying and Handling 7- 29 30. Merchandising is the practice and process of displaying and selling products to customers. See our User Agreement and Privacy Policy. learning objectives. provide info to buyers, Cost Merchandise Inventory - . Process of Merchandise Planning: Success of any retail organisation depends on presenting the merchandise that is needed by the customer. A retail buyer is a person who shops at retail stores. learning objectives. • Trade (or functional) discount • Promotional discount • Seasonal discount • Quantity discount • Cash discount. consumer behavior, 8e michael solomon. These businesses have been in place for years and have shrewd negotiators who can get costs down below reason in many cases, making it hard for you to match their … PowerPoint Presentation and Discussion 2.02 Retail Buyer Project Activity Friday: 2.02 Sources of Information for Merchandising Planning 2.02 Financial Planning Activity 2.02 Study Packet Week of September 30, 2019 Monday: 2.03 Understand Fashion Merchandising Buying PowerPoint Presentation & Discussion Video clips - Fashion Week - New York, Tokyo Quizlet flashcards, activities and games help you improve your grades. • Differences between the four methods of dollar merchandise planning. retail management: a strategic approach , 10th edition. c1: identify the items making up, CHAPTER 3 - . Your customers tend to focus on those products that are at eye-level. Buying Merchandise ‘Merchandise’ ‘Buying’ department ‘Buyer’ Merchandising: activities involved in acquiring goods and our aim. Merchandise categories determine what stores will and will not carry. accounting for sales and cash receipts. Describe the major steps in the merchandise buying and handling process. The Corner Hardware Store is attempting to develop a merchandise budget for thenext 12 months. Stock for the Season x ½[1+(Planned Sales for the Month/Average Monthly Sales)]. Merchandise Management. decide whether renting or owning is better, both financially and, Buying Trips - . reporting and analyzing inventories. Retail Management - . Ch. The list is then compared to the actual invoice after the blind check is made. Considerations WhenSelecting a Merchandise Source • Generally, one must consider such things as… • Selling history • Product quality • Consumers’ perceptions of the manufacturer • Reliability of delivery • Trade terms • Projected markup • After-sale service • Transportation time • Distribution center processing time • Inventory carrying costs • Country of origin, Selecting a Vendor • Retailers should always enter the market with two pieces of information concerning vendors: • Vendor Profitability Analysis Statement • Provides a record of all the purchases you have made over the last year, the discounts received, transportation costs, the original markup, markdowns, and season ending GMs • Confidential Vendor Analysis • Same as the vendor profit analysis statement, but also includes a 3 year financial statement, as well as annotations on the vendor’s sales staff’s negotiating points. Chapter 9 - . open-to-buy (OTB) The amount of money left for buying goods after all purchases received and on order have been considered. • What is involved in the vendor–buyer negotiation process and what vendor contract terms can be negotiated. MKTG 1058:DISTRIBUTION CHANNELS 7-1. 5: Creating Internal Systems - . modern importance of quality. Dollar Merchandise Control • The OTB should be flexible because consumer demand is “King”; however, changing it should not be a common occurrence. What is merchandising? sequence of various activities performed by the retailer such as planning describe the importance of a merchandise budget and, One of the most challenging tasks for retailers is providing the right merchandise at the right price at the right time, Preparing a Worksheet for a Merchandise Company - . This can include ordering from wholesalers and managing merchandise inventory, which incorporates elements of accounting and business management. 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