Study Guides (390,000)
CA (150,000)
Ryerson (10,000)
RMG (80)
RMG 200 (20)
Final

Exam Study Sheet


Department
Retail Management
Course Code
RMG 200
Professor
Brent Barr
Study Guide
Final

This preview shows half of the first page. to view the full 3 pages of the document.
Income Statement 1) Inventory BOM + Purchased During Month EOM = Sold During Month (SDM) 2) 9 Box Square (Find Retail Price) 3) Psychological
Pricing (.00, .49, .99) 4) Calculate Gross Sales and COGS (SDM X Retail & SDM X Cost) 5) Prepare Income Statement
$%of
Gross Sales11,699.87 NetSa
le
CR&A 1,829.90
Net SalesGross CRA = 9,869.97 100
COGS6,096.97 61.8
Gross MarginNetSales COGS =
3,773.62 38.2
Operating
Expenses5,500.00 55.7
NIBITDA-1,726.38 -17.5
Formulas Asset Turnover = Net Sales / Total Assets | Average Stock @ Retail = Net Sales / Stock Turnover [$240000/3 = $80000] | Capital Turnover =
Net Sales (Retail $) / Average Inventory ($) |Cost of Goods Sold = 8 Sold $100/DVD, @ 2% net 30, $10/unit for transportation [$800+$80-$16 = $864] |
Cumulative Mark Up % = Mark Up $ of all goods on hand / Retail $ of all good on hand | Customer Returns & Allowances = Refunds [2 DVDs returned >
CR&A = $498] | Gross Margin = Net Sales Cost of Goods Sold [$1992 - $864 = $1128] | Gross Margin % = Gross Margin / Net Sales | Gross Margin ROI =
Gross Margin ($) / Avg. Inventory ($) | Gross Sales = Retail Price * Volume of Item [$249 for a DVD * Sold 10 = $2490] | Maintained Markup % = Net Sales
Initial COGS / Net Sales Average Inventory = Retail BOM + EOM / 2 | Mark Up % on Retail Opposite of % [Retail 45 // Cost 20.25 // Cost/Retail = 45% //
MU%R is 55% | Net Price w/ Discounts = Cost * Opp % of Discounts [((($115 * 0.7)* 0.8)* 0.85) = $54.74] Dscnt=30,20,15 | Net Sales = Gross Sales CR&A
[$2490 - $498 = $1992] | Order Point = (Demand / Day) * (Lead Time + Review Time) + Backup Stock | Owners Equity = Assets Liabilities | Rate of Stock
Turnover = # Units sold / Avg. Stock in Units | Return on Investment % = Investment / Profit Made | Simple Moving Average = Sales of 3 mnths / 3
[100+75+125/3 = 100] | Stock Turnover = Net Sales ($) / Avg. Inventory Rtl ($)
Definitions 2%/10 net 30 2% discount if payment is received within 10 days. Payment is expected before the 30th calendar day. | Capital Turnover
Efficiency | Cost of Goods Sold Cost of sold item incl. billed cost, transportation, alterations, minus discounts | Customer Returns & Allowances Merch
returned to stock as refund & Price reduction | Gross Margin Amount of funds remaining to pay funds of business | Gross Sales The entire dollar amount
received for goods sold during a period | Operating/Net Income Money left over after all costs are taken into account | NIBITDA (Net income before interest,
taxes, depreciation, and amortization) |
$% (MU
Rtl% (MU
Cost)
ACost100%
+
BMark
Up
=
CRetail 100%
Positioning - Design and implementations of a retail mix to create an image of the retailers in the customers mind to its competitors | Basic Stock list:
Assortment plan for staple, non-seasonal merchandise. Indicates the desired inventory level for each sku | Never out List: Key items in a model or basic stock
list. The 20 in the 80/20 rule. Required constant review | Order point Point at which stock available should not go below or else stock will run out b4 next
order arrives
| Chargeback Used by retailers when they deduct money from the amount they owe a vendor because either Merch isnt selling or vendor made a mistake |
Slotting Allowances Fees paid by vendor for space in a retail store | Buybacks Used to get products into a retail store by buying competitors products and
clearing it from the system | Line Pricing Marketers set floor and ceiling prices and set retail prices in-between | Sustainable Competitive Advantage
Advantage over competition that cannot easily be copied and can be maintained for a long time | Micro Environment All things within control that can be
changed, | Macro Environment External that retailer cannot control
WEEK1 CH9 Strategic Planning & Leadership = Specific, Measurable, Action Oriented, Realistic, Timely > Strategy to achieve objective > Plans | Build an
effective strategy: Leadership, Knowledge, Clear Mission/Objectives, Experience, Critical/Creative Thinking, Required Resources, Interconnectivity of
Resources, Controls | Need 2 understand ur: Customers, Company, Competitors, Industry | Flow of Knowledge (DIKwisdom) | Channel of Distribution:
Manufacturing > Wholesaler > Retailer > Customer | Types of Distribution: Intensive (Consumable goods) // Selective (Certain Brands of Electronics) //
Exclusive (Clothing Hugo Boss) | Retailers offer many values: Providing Assortment, Breaking Bulk, Providing Service, and Holding Inventory | 6 Service
characteristics: Variability, Client Relationship, Creative Marketing Systems, Intangibility, Inseparability, Perishability | Customer Service satisfaction is
based on Expectation, Past Experience, and Perceptions. | Advantages to High Inventory Turnover: Increased sales volume, Less risks of Markdowns,
Improved salesperson morale, More money for market opportunities, Decreased operating expenses, Increased asset turnover, Lowered sales volume
(Disadvantage), Increased COGS (Disadvantage), Increased Operating Expenses (Disadvantage)
WEEK2 CH5: Retail Market Strategy Elements in a Market Analysis / SWOT: Market Factors Size, Growth, Seasonality, Business Cycles // Competitive
Factors Barriers to Entry, Bargaining power of Vendors, Competitive Rivalry // Environmental Factors Technological, Economic, Regulatory, Social/Cultrual //
Analysis of Strengths and Weaknesses Management Capabilities, Financial Resources, Locations, Operations, Merchandise, Store Management, Customer
Loyalty. | Building Customer Loyalty: Unique positioning, Customer Service, Info about customers, Unique Merchandise, Location | Strategic Retail
Planning Process: Define the Business Mission, Conduct situation audit, Identify strategic opportunities, Evaluate alternatives, Establish objectives and
allocate resources, Develop retail mix, Evaluate performance and make adjustments | Building Competitive Advantage: Customer Loyalty (Positioning,
Loyalty Programs), Location, HR Management, Distribution and Information Systems, Unique Merchandise, Vendor Relations, Customer Service, Multiple
Sources of Advantage | Growth Opportunities :
Target Markets
Retail
Existing New
Existing Market Penetration:
Directing effort
towards existing
customers by attracting
customers
Market Expansion:
Employs existing retail
format in a new market.
(E.g. A&F directed towards
University Students,
www.notesolution.com
You're Reading a Preview

Unlock to view full version