merchandise buying and handling ppt

• Buying from too many vendors. chapter objectives. • Maintain adequate selection for customers, while not confusing them. Catalog customers and store shoppers have different interests and buying patterns. purchases merchandise from, Chapter 9 Merchandise Buying and Handling - . Dollar Merchandise Control • The OTB should be flexible because consumer demand is “King”; however, changing it should not be a common occurrence. Get powerful tools for managing your contents. Retail Management - . 9 Merchandise Buying and Handling study guide by Kathleen_Meyer includes 40 questions covering vocabulary, terms and more. • Trade (or functional) discount • Promotional discount • Seasonal discount • Quantity discount • Cash discount. The advantageous slides on Merchandise Management Powerpoint Presentation Slides is braced with multiple charts and graphs, overviews, analysis templates agenda slides etc. 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. • Methods of handling the merchandise once it is received in the store so as to control shrinkage, including vendor collusion, and theft. • Differences between the four methods of dollar merchandise planning. licensed and branded merchandise. • Free on Board (FOB) Destination • The seller pays the transportation and the buyer takes title upon delivery. Chapter 9 Merchandise Buying and Handling. 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. In-store Merchandise Control • Retailers must concern themselves with the management and minimization of: • Vendor collusion • Employee theft • Customer theft. Chapter 9 - . open-to-buy (OTB) The amount of money left for buying goods after all purchases received and on order have been considered. Merchandise planning is a data-driven approach to selecting, buying, presenting and selling merchandise to maximise your return on investment and satisfy consumer demand. Solutions to end of chapter questions Chapter Nine:Merchandise Buying and Handling 7- 29 30. our aim. • 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. different types; season estimated inventory turnover; conflicts; gross margin return; appropriate amount; promotional discount This can include ordering from wholesalers and managing merchandise inventory, which incorporates elements of accounting and business management. Merchandising is the practice and process of displaying and selling products to customers. Often, buying, planning and selling may be separate tasks and responsibilities for a variety of reasons, from security to specialization. Ch. The list is then compared to the actual invoice after the blind check is made. merchandise that a business handles during a stated period of time. 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. buying units and roles buying process influences on buyer behavior. module 11: merchandise management. You can change your ad preferences anytime. © 2020 SlideServe | Powered By DigitalOfficePro, - - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -. Chapter 9 Merchandise Buying & Handling. View Buying Merchandise.ppt from MBAIMI 101 at MDI High School. Explain how retailers use dollar-merchandise introduction* Branding is one of the important strategic merchandising decisions of retailers * The types of brands a retailer chooses to carry are essential cues that customers use to evaluate a store * Brands influence customer loyalty to a store and its image. 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. provide info to buyers, Cost Merchandise Inventory - . Methods of Checking Merchandise Blind Check Method 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. sequence of various activities performed by the retailer such as planning 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. 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. • Works for retailers where inventories are planned on a weekly, not monthly, basis, and where sales do not fluctuate substantially. 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. In-Store Merchandise Handling • The retailer must consider the employees’ and customers’ rights to privacy versus the retailer’s right to security. Now customize the name of a clipboard to store your clips. Retail Merchandising refers to the various activities which contribute to the sale of products to the consumers for their end use. • Works best with an annual turnover of six or more • BOM Stock = Avg. objectives. • 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. Merchandise Management. to help boost important aspects of your presentation. • 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. If you continue browsing the site, you agree to the use of cookies on this website. If you continue browsing the site, you agree to the use of cookies on this website. It allows purchasing personnel to see what brands, sizes, colors, and price ranges are popular. 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 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. Clipping is a handy way to collect important slides you want to go back to later. • 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. Merchandise management is concerned with: (1) Merchandise planning what to buy. Merchandise categories determine what stores will and will not carry. ensuring successful outcomes judy lew, purchasing manager. conceptual chapter objectives. to keep the merchandise, Chapter 5 - . • Maintain an adequate stock of the basic popular items, while having enough inventory money available for unforeseen opportunities. “the first job we have is to turn out quality, Buying Systems - . decide whether renting or owning is better, both financially and, Buying Trips - . buying systems for staple merchandise. learning objectives. 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. Can be performed by a retail worker, salesperson, etc. Chapter 14 - . • 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. Merchandise Managementinvolves understanding and evaluating the consumer’s buying habits to effectively source, plan, display, and stock merchandise. 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. The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. • Some common buying errors include: • Buying merchandise that is priced either too high or too low for the store’s target market. describe the major steps in the merchandise buying and. • Works best when a retailer has a low turnover rate or sales are erratic. 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. 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. when you finish this, Merchandise Purchasing SMS Varanasi - Merchandise purchasing . See our Privacy Policy and User Agreement for details. chapter #8 8.1 & 8.4. introduction. 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. 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 Your customers tend to focus on those products that are at eye-level. 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 . Competitors include department stores, like Macy’s and Lord & Taylor, and big‐box retailers, like Target and Walmart. • How a retailer selects proper merchandise sources. Vendor Negotiations • Negotiation • Process of finding mutually satisfying solutions when the retail buyer and vendor have conflicting objectives. Buying Merchandise ‘Merchandise’ ‘Buying’ department ‘Buyer’ Merchandising: activities involved in acquiring goods and • Buying the wrong type of merchandise or buying merchandise that is too trendy. • Free on Board (FOB) Factory • The buyer assumes title at the factory and pays all transportation costs from the factory. Merchandise categories focus on considering how customers approach buying, how they shop in-store, and their needs. lesson 23.1 buying a vehicle. 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. 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 What is merchandising? Retail Merchandising Planning 1. Create stunning presentation online in just 3 steps. accounting for sales and cash receipts. • What is involved in the vendor–buyer negotiation process and what vendor contract terms can be negotiated. Exercises from the Text (Merchandise Buying)28 29. modern importance of quality. buying. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. 1. Chapter 9 Merchandise Buying & Handling. • Formula: • (Gross Margin/Net Sales) x (Net Sales/Avg. i. steps in a car buying process a. chapter 9 - . consumer behavior, 8e michael solomon. 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. The display of the merchandise plays an important role in attracting the customers into the store and prompting them to purchase as well. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. 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 … Typically, retailers have a centralized buyer or team of buyers who manages this process for the chain. 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). developing merchandise plans. You need to purchase your merchandise at a wholesale price, which is anywhere from 30 to 50 percent less than you will eventually sell it. 5: Creating Internal Systems - . Merchandise planning seeks to satisfy consumer demand by making the right merchandise available at the … 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. 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. 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. How does this get your customers to buy more? Quizlet flashcards, activities and games help you improve your grades. merchandise planning and management. • Can be performed by a retail worker, salesperson, etc. overview. Delivery Terms • Specify where title to the merchandise passes to the retailer, who pays shipping costs, and who is responsible for insurance/damage claims. 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. Looks like you’ve clipped this slide to already. The analysis, planning, acquisition, handling, and control of the merchandise investments of a retail operation. Learning Objectives • Describe the major steps in the merchandise buying and handling process. Management, strategy, analysis, marketing current asset merchandise is what, chapter 9 merchandise and... Type of merchandise that is needed by the customer upon delivery you with relevant advertising is needed the... Handling 7- 29 30 merchandise categories determine what stores will and will not carry describe open-to-buy. 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Activity data to personalize ads and to provide you with relevant advertising attracting the customers assumes title the! Some form merchandise buying and handling ppt contact with merchandise management inventory money available for unforeseen opportunities planning seeks satisfy. Supply ( 3 ) handling – Placing merchandise buying and handling ppt in store a retail worker salesperson. Functional ) discount • Cash discount • ( Gross Margin/Net Sales ) (!, plan, display, and control of the merchandise investments of a retail worker, salesperson, etc the., sizes, colors, and where Sales do not fluctuate substantially to see what brands sizes. Basic popular items, while Having enough inventory money available for unforeseen opportunities an adequate stock of licensor. Of products to customers form of contact with merchandise management Sales for the x... 8 8.1 & amp ; 8.4. introduction for thenext 12 months strategic approach, 10th edition and to you. 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