1 / 123

MERCHANDISING NOUN OR VERB?

MERCHANDISING NOUN OR VERB?. MERCHANDISNG. Introduction : How Does Merchandise Get In Your Store? What Questions Should I Ask Myself When Ordering?. OBJECTIVE. Be able to define merchandising. MERCHANDISING. Merchandising is being able to: get the right merchandise

miyo
Télécharger la présentation

MERCHANDISING NOUN OR VERB?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. MERCHANDISINGNOUN OR VERB?

  2. MERCHANDISNG Introduction: How Does Merchandise Get In Your Store? What Questions Should I Ask Myself When Ordering?

  3. OBJECTIVE • Be able to define merchandising

  4. MERCHANDISING • Merchandising is being able to: • get the right merchandise (color, size, style,quality,etc.) • at the right time • at the right price • at the right place • in the right amount

  5. MERCHANDISNG • Where does it come from? • Who ordered the merch-andise? • Does it sell? • Is it good quality stuff?

  6. MERCHANDISNG • How many should we stock? • What sizes should we have? • What does the competition have?

  7. MERCHANDISNG • Is it a fad or a trend? • What kind of price are people willing to pay? • Etc. etc. etc.

  8. THE JEANS ACTIVITY • With two partners, spend $10,000 to stock a jean store. • Have 5 brands • Cost is $20 each • Identify sizes to be carried • Identify the # of jeans to be stocked in each size

  9. THE JEANS ACTIVITY • With a partner, spend $10,000 on stocking a jean store. (Cont.) • Calculate the total dollars spent per style/brand • Present your plan to the class & turn in to me

  10. OBJECTIVE • Be able to outline the buying process used by most marketing businesses

  11. The Buying Process(OVERVIEW) • Prepare a merchandise plan (Monthly plan of buys for year) • Choose the assortment (color, type, size, variety, etc.) • Find the best supplier (quality vs. price) • Negotiate the order

  12. OBJECTIVE • Be able to describe the factors that effect a business’ merchandise assortment

  13. Merchandise Assortment Considerations • Image • Brand Policy • Pricing Policy • Merch. Plan • Customers • “Experts”

  14. How do Buyers Know What to Buy? • Marketing Research • Customer Contact • Want Slips

  15. OBJECTIVE • Be able to define & complete a purchase order

  16. Purchase Orders • A business form used to tell a vendor that you want to buy merchandise

  17. Purchase Orders • P.O. TERMS: • To • Date • Shipping Date • Via • FOB • (Shipping Point vs. Destination) • Terms

  18. Purchase Orders • P.O. TERMS: • Order # • Items # • Description • Quantity • Unit Cost • Total Cost • Total Order

  19. OBJECTIVE • Be able to calculate Purchase order terms

  20. Why do vendors offer terms? • For Paying Cash • For Paying Early • For Buying in Volume • For Buying Regularly • For Buying Out of Season

  21. Sample Terms 2/10 NET 30 • The 2 is the amount of discount available • The 10 is the number of days available to get the discount • The 30 is the total number of days available to pay the bill

  22. Sample Terms 2/10 NET 30 • EOM • ROG • Advance Dating

  23. Sample Problems Assume a $1,000 purchase dated on 4/1/01 w/ the following terms Due Date Discount = ________ 1.) 5/10 Net 30 _____ 2.) 5/10 Net 30 EOM _____ 3.) 5/10 Net 30 6/1/01 _____

  24. Sample Problems Assume a $1,000 purchase dated on 4/1/01 w/ the following terms Due Date Discount = ________ 1.) 5/10 Net 30 5/ 1/01 2.) 5/10 Net 30 EOM 5/30/01 3.) 5/10 Net 30 6/1/01 6/30/01

  25. ACTIVITY

  26. OBJECTIVE • Be able to complete an invoice

  27. INVOICE TERMS • Pieces • Weight • Invoice # • Backordered (B/O) • Unit Cost • Shipping Cost • Tax

  28. ACTIVITY

  29. OBJECTIVE • Be able to define & complete the following forms: • Bill of Lading • Waybill • Freight Bill • Delivery Receipt • Packing Slip

  30. Physical Distribution Forms • Bill of Lading • Also called a shipping order. • Used to request that a transport company come pick up & deliver merchandise. • Serves as a contract • Consignor vs. Consignee

  31. Physical Distribution Forms • Waybill • Used to keep track of merchandise as it moves through the “Channel of Distribution” (ex. Fed Ex Ad)

  32. Physical Distribution Forms • Freight Bill • An invoice (bill) for the shipping charge • Tells who should be paying for the shipping charge

  33. Physical Distribution Forms • Delivery Receipt • Form used to verify that merchandise has arrived • Signed by the buyer

  34. Physical Distribution Forms • Packing Slip • Used to compare merchandise delivered w/ what was supposed to be in the carton • Condition, number of items, correctness of order

  35. ACTIVITY

  36. MERCHANDISNG . Retail Pricing

  37. OBJECTIVE • Be able to Define “Retail Pricing” • Assigning a Dollar Value to Goods & Services

  38. The Importance of Proper Pricing • Attracts Customers • Determines Sales • Determines Profit • Keeps Up With the Competition

  39. OBJECTIVE • Be able to Define the Terms Associated with Retail Pricing: Retail Price: The amount that customers pay for a product or service

  40. OBJECTIVE • Be able to Define the Terms Associated with Retail Pricing: • Cost: The amount that a business pays to purchase products to resell

  41. OBJECTIVE • Be able to Define the Terms Associated with Retail Pricing: • Markup: The additional amount that a business adds to cost to cover its expenses AND make a profit

  42. OBJECTIVE • Be able to Define the Terms Associated with Retail Pricing: • Markdown: A Reduction in • the amount of Retail Price

  43. FORMULA RP$ = C$ + M$

  44. FORMULA RP% = C% + M%

  45. FORMULA(Variations) C$ = RP$ - M$ M$ = RP$ - C$ C% = RP% - M% M% = RP% - C%

  46. ILLUSTRATION

  47. But What do Business People Generally Know? • Retail Price = 100 % • Cost of Goods (C$) • Markup % (M%) • The Formulas

  48. PROBLEM: You’ve Got Apples & Oranges

  49. Set - Up RP$ = RP% = 100% C$ = C% = M$ = M% =

  50. EXAMPLEWhat can you Calculate? RP$ = RP% = 100% C$ = $6.00 C% = M$ = M% = 40%

More Related