FAS 301 Lecture 5: Chapter 5
Document Summary
The consumer- needs & wants, right product, strengthens a company, profit. Cost-oriented pricing applies a predetermined markup % to determine a retail price. Competition- oriented pricing positioning a firm in the marketplace based on price strategies: improve/maintain market share. Meet/beat the competition achieve a target return stabilize prices. Establishing retail prices: cost of merchandise plus, an additional amount (markup) Must include enough to cover expenses (fixed and variable) and planned profit. Net sales, cost of goods sold, gross margin. 2 areas: buying line, store line store line: (operational) train associates receiving and movement of goods and people in store provide customer service control expenses. They buyers role: analyze & assimilate information, buyer"s taste vs. customers taste, plan & purchase, react. General merchandise plan components: receipts, sales, markups/markdowns, promo calendar, bom/eom stock o, weeks supply and turn, shortage, gross margin, discount, units. Function as editors for the consumer by their own selection process eliminating styles that do not match their customer.
