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 … Can be performed by a retail worker, salesperson, etc. Marketing Essentials Chapter 24, Section 24.2 decide whether renting or owning is better, both financially and, Buying Trips - . The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. See our Privacy Policy and User Agreement for details. Vendor Negotiations • Given price is often one of the first factors to be negotiated, the buyer should be aware of the different types of discounts available. • Free on Board (FOB) Factory • The buyer assumes title at the factory and pays all transportation costs from the factory. 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 For example, if you sell a pair of shoes at retail for $100 and they cost you $30 to produce, your Gross Profit is equal to ($100 – $30)/$100 or 70%. What You Should Have Learned…Chapter’s Learning Objectives • The major steps in the merchandise buying and handling process. Chapter 9 - . This can include ordering from wholesalers and managing merchandise inventory, which incorporates elements of accounting and business management. merchandise planning and management. Gross Margin Return on Inventory (GMROI) Gross Margin/Average Inventory at Cost OR (Gross Margin %) X (Net Sales) Basic Stock Method (BSM) Technique for planning dollar inventory investments and allows for a base stock level plus a variable amount of inventory that … • Maintain an adequate stock of the basic popular items, while having enough inventory money available for unforeseen opportunities. developing merchandise plans. Retail Merchandising refers to the various activities which contribute to the sale of products to the consumers for their end use. A retail buyer is a person who shops at retail stores. Now customize the name of a clipboard to store your clips. merchandise that a business handles during a stated period of time. sequence of various activities performed by the retailer such as planning Exercises from the Text (Merchandise Buying)28 29. Retail Merchandise Planning By- Shahbaaz Ahmed PGFB1345 2. module 11: merchandise management. buying units and roles buying process influences on buyer behavior. • Buying the wrong type of merchandise or buying merchandise that is too trendy. Merchandising is the practice and process of displaying and selling products to customers. purchases merchandise from, Chapter 9 Merchandise Buying and Handling - . The list is then compared to the actual invoice after the blind check is made. consumer behavior, 8e michael solomon. Four Constraining Factorsof the Merchandise Mix. Buying Merchandise ‘Merchandise’ ‘Buying’ department ‘Buyer’ Merchandising: activities involved in acquiring goods and • Methods of handling the merchandise once it is received in the store so as to control shrinkage, including vendor collusion, and theft. Solutions to end of chapter questions Chapter Nine:Merchandise Buying and Handling 7- 29 30. Often, buying, planning and selling may be separate tasks and responsibilities for a variety of reasons, from security to specialization. • Maintain adequate selection for customers, while not confusing them. introduction to quality. Learning Objectives • Describe the major steps in the merchandise buying and handling process. Describe the major steps in the merchandise buying and handling process. The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. Chapter 10 Buying and Disposing - . • Explain the differences between the four methods of dollar merchandise planning used to determine the proper inventory stock levels needed to begin a merchandise selling period. open-to-buy (OTB) The amount of money left for buying goods after all purchases received and on order have been considered. ciera burch, brody el- achi , and anna allred. It is a process from beginning (strategy) to end (performance evaluation) that is cyclical in nature and involves individuals at every level of the retail organization. In-store Merchandise Control • Retailers must concern themselves with the management and minimization of: • Vendor collusion • Employee theft • Customer theft. • Free on Board (FOB) Shipping Point • The vendor pays the transportation to a local shipping point, but the buyer assumes title there and pays all further transportation costs. The stages in this process are business, management, strategy, analysis, marketing. 1. • Retailers must not only plan to have the appropriate amount of merchandise on hand for customers but also ensure that the merchandise purchased for the store shelves actually arrives. provide info to buyers, Cost Merchandise Inventory - . If you continue browsing the site, you agree to the use of cookies on this website. modern importance of quality. retail management: a strategic approach , 10th edition. • Formula: • (Gross Margin/Net Sales) x (Net Sales/Avg. Gross Margin Return on Inventory (GMROI) • Incorporates into a single measure the idea of both inventory turnover and profit, and is used because inventory is the largest investment a retailer makes. Merchandise Buying and Handling. Typically, retailers have a centralized buyer or team of buyers who manages this process for the chain. Your customers tend to focus on those products that are at eye-level. Your customers will all be retail buyers, and they will pay the full retail price for your merchandise. DC Lecture Ten : Customer Service And Retail Selling, DC Lecture Six: Managing a Retailer's Finances, Merchandise planning step by step process, Mission - Vision - Strategy in Organisations, Strategy Planning and Deployment Process Training Module, No public clipboards found for this slide, DC Lecture Seven : Merchandise Buying and Handling, Industry Value Creation at Partners Group. (4) Monitoring the stock levels and inventory and merchandise movement. branding strategiesglobal. Merchandise Management. If you continue browsing the site, you agree to the use of cookies on this website. Stock for the Season x ½[1+(Planned Sales for the Month/Average Monthly Sales)]. A wholesale buyer is you, the business owner. Stock-to-Sales Method • The amount of inventory planned for the beginning of the month is a ratio (obtained from trade associations or the retailer’s historical records) of stock-to-sales. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. • What is involved in the vendor–buyer negotiation process and what vendor contract terms can be negotiated. Process of Merchandise Planning: Success of any retail organisation depends on presenting the merchandise that is needed by the customer. Clipping is a handy way to collect important slides you want to go back to later. • How a retailer selects proper merchandise sources. Merchandise management is concerned with: (1) Merchandise planning what to buy. © 2020 SlideServe | Powered By DigitalOfficePro, - - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -. You can change your ad preferences anytime. Four Methods of Planning Dollars Invested in Stock • Basic Stock Method (BSM) • Percentage Variation Method (PVM) • Weeks’ Supply Method (WSM) • Stock-to-Sales Method (SSM). Analysis Planning Acquisition Handling Control of the merchandise investments in a retail operation 2nd buyer uses an open-to-buy figure to plan the merchandise assortment for the upcoming season 3rd buyer must then determine the source of the different product inventories 5TH Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. merchandise= current asset merchandise is what, Chapter 8 Managing a Retailer’s Finances - . Competitors include department stores, like Macy’s and Lord & Taylor, and big‐box retailers, like Target and Walmart. When the same person isn't taking care of all three parts of the merchandising equation – buying, selling and planning – retailers need to consider how that could impact overall merchandising efforts. Conflicts in Unit Stock Planning • Successful retailers will: • Maintain a strong in-stock position on genuinely new items, while trying to avoid the 90% of new products that fail. What is merchandising? The Corner Hardware Store is attempting to develop a merchandise budget for thenext 12 months. accounting for sales and cash receipts. (2) Acquisition – from whom to buy – source of supply (3) Handling – Placing merchandise in store. • Average Stock for the Season = Total Planned Sales for the Season/Estimated Inventory Turnover Rate for the Season • Average Monthly Sales = Total Planned Sales for the Season/Number of Months in the Season • Basic Stock = Average Stock for the Season – Average Monthly Sales for the Season • BOM Stock = Planned Monthly Sales + Basic Stock, Percentage Variation Method • Assumes that the percentage fluctuations in monthly stock from average stock should be half as great as the percentage fluctuations in monthly sales from average sales. Introduction- • Merchandise Management- Activities involved in acquiring particular goods and services and making them available at the places, times, prices and quantities that enable a retailer to reach its goals. “the first job we have is to turn out quality, Buying Systems - . 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. Retail Merchandising Planning 1. buying systems for staple merchandise. to understand the structure of the licensor – licensee, Chapter 1 - . Chapter 9 Merchandise Buying & Handling. See our User Agreement and Privacy Policy. buyer behavior. buying. chapter #8 8.1 & 8.4. introduction. • This is the method used in our merchandise budget and is quite easy; however, it requires the retailer to have a BOM stock-to-sales ratio, which can be gained from: • POS data • Trade Associations • Turnover goals, Dollar Merchandise Control • Open-to-Buy (OTB) – represents the dollar amount a buyer can currently spend on merchandise without exceeding the planned dollar stock. to help boost important aspects of your presentation. Chapter 23: Buying and Caring for a Vehicle - . 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 … Basic Stock Method • It fails to perform when the turnover is greater than once every two months (or 6 times per yr), because in this situation the basic stock level for each month would be negative. • How retailers use dollar-merchandise control and describe how open-to-buy is used in the retail buying process. Chapter 9 Merchandise Buying and Handling. describe the major steps in the merchandise buying and. A retail customer needs the entire shopping experience, browsing from one department to another, one store to another, interacting with other people. licensed and branded merchandise. c1: identify the items making up, CHAPTER 3 - . It allows purchasing personnel to see what brands, sizes, colors, and price ranges are popular. Merchandise planning buying right kind of product, fixing a right kind of price providing adequate range of products through an appropriate assortment, and ensure adequate space to showcase and sell the product. The display of the merchandise plays an important role in attracting the customers into the store and prompting them to purchase as well. Catalog customers and store shoppers have different interests and buying patterns. Explain how retailers use dollar-merchandise Learning Objectives • Describe the major steps in the merchandise buying and handling process • Explain the differences between the four methods of dollar merchandise planning used to determine the proper inventory stock levels needed to begin a merchandise selling period • Explain how retailers use dollar-merchandise control and describe how open-to-buy is used in the retail buying process Chapter 9 Merchandise Buying & Handling. • Most entry-level marketing positions involve some form of contact with merchandise management. The concept of merchandising is based on presenting products at the right time, at the right place, in the right quantity and at the right price to maximize sales. i. steps in a car buying process a. chapter 9 - . handout and quiz). merchandise management. • Works best with an annual turnover of six or more • BOM Stock = Avg. Looks like you’ve clipped this slide to already. Explain the differences between the four methods of dollar merchandise planning used to determine the proper inventory stock levels needed to begin a merchandise selling period. Evaluating Merchandise: After deciding upon the source of merchandise, next step is to evaluate the … merchandise functions operational functions marketing and promotional functions, Four Methods of Planning Dollars Invested in Stock, Considerations WhenSelecting a Merchandise Source, What You Should Have Learned…Chapter’s Learning. How does this get your customers to buy more? • Maintain high merchandise turnover goals, while maintaining high margin goals. • Trade (or functional) discount • Promotional discount • Seasonal discount • Quantity discount • Cash discount. In the retail sector, merchandise is a classification professionals use to categorize the industry by the types of goods and services offered (e.g., automotive parts, shoes, jewelry, etc. For a better understanding of supply chain management, check out Essentials of Supply Chain Management by Michael H. Hugos: *** See Also: Merchandising Types and Examples Merchandise planning is a data-driven approach to selecting, buying, presenting and selling merchandise to maximise your return on investment and satisfy consumer demand. Ch. Features of these PowerPoint presentation slides: This is a merchandise buying 6 month plan average stock ppt PowerPoint presentation gallery example file. 2. The general merchandise retailing strategyallows you to appeal to more people due to having a wide and deep assortment of products, but it also puts you in a very competitive category, which requires a lot of resources to survive. Merchandise planning seeks to satisfy consumer demand by making the right merchandise available at the … Merchandise Management. Chapters 12 & 13 by Levy & Weitz Buying Decision Process Merchandise Management The planning and control of merchandise inventories to meet desired sales and product ... – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 3bb1bb-YWY4Z The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. We discussed some of those key roles and opportunities in retail in the Module 1: Introduction to Retailing, and you most likely thought about where you would and wouldn’t be an ideal fit. buying a home. Merchandise categories focus on considering how customers approach buying, how they shop in-store, and their needs. learning objectives. conceptual chapter objectives. Ch. Delivery Terms • Specify where title to the merchandise passes to the retailer, who pays shipping costs, and who is responsible for insurance/damage claims. when you finish this, Merchandise Purchasing SMS Varanasi - Merchandise purchasing . 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 - . preparing for a buying trip, SOUL Programs Donor Merchandise - . • The essence of negotiation is to trade what is cheap to you but valuable to the other party for what is valuable to you but cheap to the other party (i.e., collaboration – ref. 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. Weeks’ Supply Method • The inventory level should be set equal to a predetermined number of weeks’ supply, which is directly related to the desired rate of stock turnover. reporting and analyzing inventories. Stop your audience's blank gaze. In-Store Merchandise Handling • The retailer must consider the employees’ and customers’ rights to privacy versus the retailer’s right to security. learning objectives. Merchandising is the promotion of the sale of goods that can employ pricing, special offers, display and other techniques designed to influence consumers’ buying decisions. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. buyer behavior. Merchandise Management • The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. 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 . Merchandise Managementinvolves understanding and evaluating the consumer’s buying habits to effectively source, plan, display, and stock merchandise. Quizlet flashcards, activities and games help you improve your grades. overview. • Works best when a retailer has a low turnover rate or sales are erratic. 2. objectives of the session . Vendor Negotiations • Negotiation • Process of finding mutually satisfying solutions when the retail buyer and vendor have conflicting objectives. Whether digital or in-store, retailers use merchandising to influence customer intent and reach their sales goals.Note: For a more in-depth definition, see What is Merchandising?Establishing the right merchandising strategy can depend on a variety of factors, such as sector, product qualities, available space, and whether the r… Can be performed by a retail worker, salesperson, etc. objectives. unit control The quantities of merchandise that a business handles during a stated period of time. • Works for retailers where inventories are planned on a weekly, not monthly, basis, and where sales do not fluctuate substantially. Dollar Merchandise Control • The OTB should be flexible because consumer demand is “King”; however, changing it should not be a common occurrence. 5: Creating Internal Systems - . 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. Stock Handling Stock Handling 24.1 blind check method A method of checking whereby the receiver writes the description of the merchandise, counts the quantities received, and lists them on a blank form or dummy invoice. • Can be performed by a retail worker, salesperson, etc. Six-Month Merchandise Plan The open-to-buy (OTB) X is the amount of money left for buying goods after all purchases received and on order have been considered. • Maintain space productivity, while not congesting the store. 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. • Some common buying errors include: • Buying merchandise that is priced either too high or too low for the store’s target market. merchandising business. • Free on Board (FOB) Destination • The seller pays the transportation and the buyer takes title upon delivery. different types; season estimated inventory turnover; conflicts; gross margin return; appropriate amount; promotional discount • Calculated as follows: • EOM planned retail stock • Plus planned sales for the month • Plus planned reductions for the month • Minus stock on hand at retail • Equals planned purchases at retail • Minus commitments at retail for current delivery. Every retail store has its own line of merchandise to offer to the customers. 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