69 Matching questions
- Initial Markup
- Retail Price
- Fashion Trend
- Mass Fashion
- Trickle up theory
- Total Sales Revenue=
- Tactical Price Changes
- Promotional Pricing
- Price Points
- corporate level Merchandiser
- Visual Merchandiser
- why are prices vital?
- Trickle across theory
- Avoiding deceptive pricing
- markdown totals
- Fashion Life Cycle
- Whole sale merchandising
- Trickle down theory
- Product Developer
- Retail Mark Up% =
- maintained markup
- Importance of Maintained markup
- Fashion Coordinator & Fashion director
- Retailers and Fashion
- Types of Markup
- Store- level Merchandiser
- High Fashion
- Fashion Goods
- Determining the Price Point
- Transforming Basics into Fashion
- Clearance Merchandise
- Cumulative Markup
- Business Trend
- Corporate retail merchandising options
- one-hand buying
- Related Merchandising Responsibility
- Influencing fashion change
- Pricing challenge
- Economic Role of Fashion
- Merchandising Track:
- Two tracks in Fashion Industry
- Everyday Low Pricing (EDLP)
- Fashion Industry
- Basic Goods
- Retail Merchandising
- Types of Markdowns
- Retailer's Challenge
- Theories of fashion acceptance
- Managing markdowns
- Operation Track:
- Sales Executive
- Vertical Integration
- Marketing Channel
- a = an item's characteristics: crew or "v" neck sweater; it may be in or out of fashion.
- b Buyer, Planner, Distributor, Product developer
- c specifies products to be developed internally
- d researches trends, colors and styles, and informs buyers
- e Marketers change customers' attitudes by transforming rational buying motives reasons into emotional ones.
They offer new features and benefits such as color and texture, styling, and details. How was this done with hosiery, men's underwear, and kitchen appliances?
- f Training Program/ assistant buyer (buying responsibility)--> Senior assistant buyer, associate buyer--> Buyer (apparel)--> Divisional Merchandiser manager (responsible for all branch buyers, product selection, floor sets, not really doing but over seeing like a referee)--> General Merchandise Manager (GMM)/ VP (Top management, keeper of division, know corp goals)
- g Like sales and inventory, markdowns are planned in advance and tracked over time by department and or category. Last year's markdowns are the basis for planning this year's; they are watched throughout the year and compared with industry figures. High markdowns may bring high sales but lower profits.
- h Today fashion is an integral part of our economy and our culture.
It is hard to find a product that does not contain some element of fashion! Retailers promote fashion through advertising, sales promotion, product presentation and direct selling. Fashion drives sales but makes the retailer's job more complex.
- i A fad has a short life cycle. Savvy retailers capitalize on fads. Ex: High heeled sneakers
- j Fashion looks are similar at Saks and Target. Why?
- k When the Markup% is given and the cost is known it is easy to figure out how to determine retail.
Formula = 100-Mkup% = cost complement
Cost divided by CC % = retail
Example a sweater cost is $40 and the retailer has a 54% markup goal.
100-54%=46% ( CC ) $40 divided by 46%= $ 86.96
$86.96 would be the retail price of the sweater.
- l Basic goods are necessities that rarely change, ex., pots and pans.
Customers buy them for rational reasons, ex., replacing windshield wipers.
- m Trickle down, Trickle across, and Trickle up
The point is that these three theories are all at work at once in the market place and the challenge to the retailer is to identify what is happening in time to have the goods that customers want just before the come into the store or on to the web site.
- n Price X Units sold
- o A widely popular expression (in apparel, homes, art, music and so on).
- p Maintained markup is the difference between the merchandise cost and the actual selling price. (minus the markdowns) Formula:
Maintained mu$ = initial mu$ - net mds$
GM = maintained mu - transportation - workroom + cash discounts
Maintained mu = Gm + transportation + workroom costs - cash discounts
- q Sales associate (non managerial associate) --> 3rd Key, key holder, cashier, head cashier, assistant manager--> Assistant manager, department head --> Store Manager (whats going on at the store level, hiring, firing, loss prevention)--> District Manager (not in merchandising, link between store manager and regional manager)--> Regional Manager (link between district manager and VP/ director)--> VP of stores, Director of stores
- r are incredibly important to all retailers businesses and are often determined FIRST in the Markup formula. Today MSRP's are often used.(manufacturers suggested retail price). Retailers and manufacturers have gross margin goals and will establish a IMU (initial Mkup) based on those goals.
- s Sales diminish; retailers lower prices, replace the look for a newer trend.
- t Fashion is a strong force in our economy including manufacturing, retailing and promotion. Systematically introducing new product lines makes fashion highly competitive.
- u Fashion goods can increase sales. Fashion goods are riskier for retailers to offer. The fashion buyer must select appropriate looks or sales and profits will tumble.
- v Liaison between the designer and the sales team.
- w EDLP, a value-oriented pricing strategy using ongoing promotional pricing, no advertising. May also be called EDV ( every day value) Result: Lower GM but lower expenses. Used by Wal-Mart and Toys "R" Us, not by all discounters.
- x Determining the retail price point is up to the buyer and the type of store the retailer is.... Department, Specialty, or discount store.
- y Departments - groups of similar merchandising responsibilities, e.g., Diamond buyer. Divisions - made up of related departments, e.g. Fine Jewelry division. A division is headed by a Divisional Merchandise Manager (DMM). FOB- (Family of Business) made up of Multiple Divisions reporting to a corporate vice president. (GMM) e.g. Jewelry FOB
- z Retail
prices are the chief source of sales revenue and profits for a retail
organization. Price times units sold = total sales revenue.
It is the job of the Retailer to create retail prices . Today most manufacturers work with retailers to create retail prices.
- aa To avoid deceptive pricing, retailers need to know government regulations regarding: Regular price comparisons; comparisons to the competition, Lowest price; free merchandise Going out of business Bait and switch; rainchecks; predatory pricing.
- ab Maintained mu and initial mu are the same if there is 100% sell through—all of the goods are sold at the initial mu. Maintained mu evaluates the ability of goods to keep their original price.
- ac creates the design works with the pattern maker and product development team to create a line of merchandise .
- ad Many knockoffs; looks adopted by fashion followers.
- ae when a store looks like it has been picked by the same buyer, but really is picked by multiple buyers. (ex: jean buyer, shirt buyer, jewelry buyer, shoe buyer)
- af Technology, Economic Conditions, Social Conditions, celebrities, Hollywood, and Globalization
- ag Merchandise is shown according to standards; Selling Floors are merchandised neatly and in a manner that is easy for the customer to understand and shop. Inventory levels and assortments meet consumer and sales objectives
- ah Fashion goods often are not necessities; they change frequently, ex., junior sportswear. Customers buy them for emotional reasons, "I've got to have that wristwatch."
- ai Fashions originate on the street and move up. When?
- aj the movement of fashion.
defined by: Acceptance, Direction, Duration, Relationship
- ak Certain residual (leftover) goods are marked down permanently. These include: Discontinued Goods, Seasonal Merchandise
Slow Sellers: Unseasonable weather, Wrong assortments,Poor presentation,Late delivery
- al Visual Merchandiser, Fashion coordinator, Fashion Director
- am buys and prices merchandise for resale
- an Mass fashion is made by manufacturers and retailers at many prices. Fashion followers (most people interested in fashion) wear mass fashion. Fashion laggards want good value;they buy late.
- ao Introduction, Growth, Peak, Decline
- ap The Planning ,Development and Presentation of a product line created for a Target Customer. To have the right goods at the right time in the right quantities at the right price and in the right place! Retail merchandising includes all of the activities associated with Buying and Selling merchandise.
- aq Sometimes manufacturers' closeouts can offer retailers price advantages. Example: A vendor offers pants regularly costing $20 for $15. Buyer believes they could retail for $40, an inflated mu (called a markdown cancellation). Later the goods are priced at normal mu, $29.99 (called a markup cancellation). Lower price changes are called \ markdowns.
- ar Markdowns are a reduction in price. They may be expressed in dollars—now $30 off—or in percentages—lower by 20%.
The formula: Markdown % = MD$ divided by original price x 100.
A jacket marked down $25, originally $125 would be
$25 / $125 x100 = 20%. An additional $20 markdown reducing the jacket to $80 can be stated according to the current price of $100 or it may be combined with the first markdown and shown as apercent off the original price. Formula:
Md% = total $md / original price x 100 = 36%.
Markdown $ may be computed when a markdown % and retail price are known. Example: a 30% MD on a dress now priced at $80 uses this formula: MD$ = $80 x .30 (or 30%) = $24.
The new (marked down) retail price is found by subtracting the $md from the $retail. $80 -$24 = $56.
Or 100-MD% =CC% retail x MD%=new retail price. 100-30% =70%. $80 x 70% = $56
- as Initial Markup, Cumulative Markup,
- at The challenge of obtaining appealing merchandise for customers requires a knowledge of the goods available and the preferences of customers. Understanding how goods reach retailers and how retailers are organized to best offer those goods are our first topics.
- au represents the flow of goods From producer to whole sales to retailer to consumer (producer-->whole sale-->retailer-->consumer)
- av projects sales and stocks based on past sales and trends.
- aw the first markup or original price.
- ax Fashion leaders pay high prices for new looks.
- ay plans store décor, display, fixtures and signs. Develops planograms to guide stores.
- az allocates goods to stores, based on plan.
- ba Fast pace
- bb The sum of all goods at cost and retail divided by the total retail
- bc Determining
the right price is the retailer's challenge, to always keep in mind the
target customer and the store's objectives and image.
To Create the perfect Price Point to entice the customer to BUY while still meeting profit objectives.
To establish a Promotional Policy that generates business and liquidates markdowns while still meeting profit objectives
- bd Damages, Employee Discounts, Promotional Markdowns (temporary), Clearance Markdowns (permanent)
- be Retail price - cost price (divided by).
Retail price (x 100 )
Cost = what the retailer pays ($6).
Markup = what the retailer adds ($4).
When two elements are known, the third may be found. $10 - $6 Markup may be expressed in $ or %. ($4 or 40%).
Retailers generally express Markup as a %
- bf Operations & Merchandising
- bg Takes a while to change
- bh A classic is a fashion look that has been around longer than expected. Retailers sell classics season after season. Ex: Pencil skirt
- bi High fashion looks are created by designers and exclusive stores.
Fashion leaders buy these looks during the introduction and growth stages. The goods are expensive but exclusivity is what fashion leaders crave.
- bj Designer, Sales executive, Merchandiser
- bk Performing more than one Channel Function is called Vertical Integration. Why is this function so popular today? Increased control of the product at the retail level. (signature stores). Fiscal Advantages. Exclusive distribution of private label
- bl 100 -Mkup% = cost complement %
Retail x CC% = cost
Example: A retailer wants to price point as sweater for $88. The departmental mkup that the buyer must achieve is 54%
100-54%=46%. $88 x 46% = $40.48
- bm All
price changes require book inventory entries, markdowns at the
beginning, markups at the end. Computerized price lookup (PLU) scanning
each SKU, facilitates price changes.
A discounted price offered in hopes of: Generating traffic, Stimulating sales in slow times, Competing with other retailers, Establishing a value-oriented image
- bn shows and sells the line of merchandise to the Retail Buyers
- bo The look reaches its sales potential, available many places.
- bp Fashions move from higher social levels to lower. how?
- bq The total markdowns for a period can be shown as a percentage of net sales for that period.
MD$ for a period = Total MD$ / net sales x 100 = MD%.
Junior dresses total MD$$50,000 / sales $500,000 = 10% period markdowns.