merchandise buying and handling ppt

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In-Store Merchandise Handling • The retailer must consider the employees’ and customers’ rights to privacy versus the retailer’s right to security. chapter objectives. Ch. 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 The stages in this process are business, management, strategy, analysis, marketing. 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 . 5: Creating Internal Systems - . 2. Every retail store has its own line of merchandise to offer to the customers. • 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. 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. • Formula: • (Gross Margin/Net Sales) x (Net Sales/Avg. • Can be performed by a retail worker, salesperson, etc. learning objectives. buyer behavior. Merchandise Management • The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. 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. merchandising business. 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 … 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. ciera burch, brody el- achi , and anna allred. MKTG 1058:DISTRIBUTION CHANNELS 7-1. Chapter 14 - . • Works best when a retailer has a low turnover rate or sales are erratic. 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 … decide whether renting or owning is better, both financially and, Buying Trips - . objectives. to understand the structure of the licensor – licensee, Chapter 1 - . lesson 23.1 buying a vehicle. sequence of various activities performed by the retailer such as planning Chapter 23: Buying and Caring for a Vehicle - . • Works for retailers where inventories are planned on a weekly, not monthly, basis, and where sales do not fluctuate substantially. 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. (2) Acquisition – from whom to buy – source of supply (3) Handling – Placing merchandise in store. • Works best with an annual turnover of six or more • BOM Stock = Avg. developing merchandise plans. Describe the major steps in the merchandise buying and handling process. 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 • Maintain adequate selection for customers, while not confusing them. The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. 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). Merchandising is the practice and process of displaying and selling products to customers. 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. Exercises from the Text (Merchandise Buying)28 29. different types; season estimated inventory turnover; conflicts; gross margin return; appropriate amount; promotional discount 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%. merchandise= current asset merchandise is what, Chapter 8 Managing a Retailer’s Finances - . • What is involved in the vendor–buyer negotiation process and what vendor contract terms can be negotiated. buyer behavior. © 2020 SlideServe | Powered By DigitalOfficePro, - - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -. 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. our aim. 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 - . • Trade (or functional) discount • Promotional discount • Seasonal discount • Quantity discount • Cash discount. merchandise planning and management. chapter #8 8.1 & 8.4. introduction. 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. open-to-buy (OTB) The amount of money left for buying goods after all purchases received and on order have been considered. 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. Process of Merchandise Planning: Success of any retail organisation depends on presenting the merchandise that is needed by the customer. learning objectives. Merchandise management is concerned with: (1) Merchandise planning what to buy. 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. Get powerful tools for managing your contents. 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. Now customize the name of a clipboard to store your clips. ensuring successful outcomes judy lew, purchasing manager. • 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. preparing for a buying trip, SOUL Programs Donor Merchandise - . merchandise management. Stock for the Season x ½[1+(Planned Sales for the Month/Average Monthly Sales)]. Solutions to end of chapter questions Chapter Nine:Merchandise Buying and Handling 7- 29 30. • How a retailer selects proper merchandise sources. 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. Vendor Negotiations • Negotiation • Process of finding mutually satisfying solutions when the retail buyer and vendor have conflicting objectives. Your customers will all be retail buyers, and they will pay the full retail price for your merchandise. • Some common buying errors include: • Buying merchandise that is priced either too high or too low for the store’s target market. Retail Merchandising Planning 1. 9 Merchandise Buying and Handling study guide by Kathleen_Meyer includes 40 questions covering vocabulary, terms and more. Ch. Then she wants to be able to touch the products, to see every side and angle, and try them on. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. • 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. A retail buyer is a person who shops at retail stores. 2. objectives of the session . What is merchandising? • Maintain high merchandise turnover goals, while maintaining high margin goals. Competitors include department stores, like Macy’s and Lord & Taylor, and big‐box retailers, like Target and Walmart. to help boost important aspects of your presentation. 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. Can be performed by a retail worker, salesperson, etc. 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. i. steps in a car buying process a. chapter 9 - . How does this get your customers to buy more? provide info to buyers, Cost Merchandise Inventory - . Merchandise planning seeks to satisfy consumer demand by making the right merchandise available at the … 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. Dollar Merchandise Planning and Forecasting • uyer’s goal - make the best possible when you finish this, Merchandise Purchasing SMS Varanasi - Merchandise purchasing . • Most entry-level marketing positions involve some form of contact with merchandise management. purchases merchandise from, Chapter 9 Merchandise Buying and Handling - . 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 It allows purchasing personnel to see what brands, sizes, colors, and price ranges are popular. 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 Quizlet flashcards, activities and games help you improve your grades. introduction to quality. The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. • Having too much or too little basic stock on hand. merchandise that a business handles during a stated period of time. Dollar Merchandise Control • The OTB should be flexible because consumer demand is “King”; however, changing it should not be a common occurrence. Delivery Terms • Specify where title to the merchandise passes to the retailer, who pays shipping costs, and who is responsible for insurance/damage claims. 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. • Maintain an adequate stock of the basic popular items, while having enough inventory money available for unforeseen opportunities. 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… Clipping is a handy way to collect important slides you want to go back to later. Your customers tend to focus on those products that are at eye-level. Merchandise planning and buying refers to retailers' systematic approach to forecasting merchandise inventory requirements and negotiating the best deals with suppliers. Merchandise categories determine what stores will and will not carry. 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. See our User Agreement and Privacy Policy. 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. 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. Retail Merchandising refers to the various activities which contribute to the sale of products to the consumers for their end use. buying systems for staple merchandise. Features of these PowerPoint presentation slides: This is a merchandise buying 6 month plan average stock ppt PowerPoint presentation gallery example file. 1. 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. Display of the basic popular items, while not congesting the store and prompting them to purchase as well to... 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