3rd Quarter Merchandising Test 4 Flashcards Preview

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Flashcards in 3rd Quarter Merchandising Test 4 Deck (85):
1

merchandising plan is also known as...

sales objective or
sales plan

2

planning equals...

profit (built into service fees)

3

plan components

Merchandise
Selection of merchandise
Cost and pricing
Display

4

What are these examples of?

Evaluate the market
Evaluate sales history
Determine product availability
Consider supplier recommendations
Establish product and service mix

steps in planning

5

considerations when selecting suppliers

payment terms
availability of product
product support
product quality

6

types of payment terms

cash discount
rebate
quantity discount
consignment

7

Reduction of price for payment of an account within time limits.

Established by the sales contract.

cash discounts

8

what is this an example of?

Terms: 2/10 net 30
2% discount if paid within 10 days
Full payment (NET) due in 30 days

cash discounts

9

Reduction in amount of a bill when a minimum quantity of merchandise has been ordered.

quantity discount (EOQ)

10

what items would a quantity discount be used on?

caskets
embalming fluids

11

return of a portion of a payment

rebate

12

giving merchandise to an agent to be cared for or sold.

Payment is not made to the supplier until the merchandise is sold.

consignment

13

What are these methods of?

Markup
Consumer value index
Merchandise value ratio
Fixed multiple
Graduated recovery

methods of determining prices

14

Difference between merchandise (wholesale) cost and selling (retail) price.
Retail - wholesale = _________

markup

15

markup is also known as...

profit margin

16

Percentage derived by dividing wholesale cost by the retail price.

Spending more money should equal more value for each dollar spent

Wholesale divided by retail = _______

Consumer Value Index (CVI)

17

Relationship between wholesale cost of merchandise and total cost of both service and merchandise to the consumer.

Wholesale divided by (service + merchandise) = ________

merchandise value ratio (MVR)

18

Staff services: such as... for obits, DC's, papwerwork, etc.
PLUS (+)
Overhead costs: such as...Salaries, office supplies, rent, maintenance, utilities, etc.

Sum of these costs divided by number of services (historically or projected)
EQUALS (=) __________

service fee

19

service fee should be....

reasonable

20

A price determination method whereby the casket cost is multiplied by a constant factor. (number)

Historically the fixed number has been three (3).

fixed multiple

21

advantage of fixed multiple

easy to use and provides quality

22

disadvantage of fixed multiple

no improvement in CVI
no incentive to buy up

23

The return of money produced by varying the amount expected on each selection.

The amount of markup varies with the cost of the merchandise.

graduated recovery

24

types of graduated recovery

increase
decrease
modified

25

increase is less favorable with this...

graduated recovery

26

markup the more expensive caskets

increase

27

most win-win situation

decline price

28

encourages consumers to buy better merchandise....provides for families who require lower priced caskets

modified declining

29

Sales trend terminology

Average
Median
Mode
Quartile

30

average also known as...

mean

31

the sum of a group of numbers divided by the number of units.

average

32

a value in an ordered set of values which represent the midpoint, whereby there are an equal number of values above and below the midpoint value.

median

33

the number that appears most frequently in a listing of numbers.

mode

34

a division of the total into four intervals, each one representing one-fourth of the total.

Quartile

35

find definition for this...

balanced line

36

caskets sold in 2nd and 3rd quartile (Most people select in the middle)

range

37

people usually begin in ______ price or move either direction

mid-range

38

The number of times sales in a given price bracket occurs over a fixed period of time.

sales frequency

39

different methods of price quotations...

Itemization (FTC)
Package pricing
Bi-unit pricing
Functional pricing
Unit pricing (historical method)

40

The method of price quotation by which each unit of service and/or merchandise is priced separately.

Requirements of FTC

itemization

41

The pricing method which groups together selected services and/or merchandise.

Package pricing

42

examples of package pricing

unit pricing
bi-unit pricing
functional pricing

43

FTC STATES....that ______ pricing method is acceptable if family receives an _________ General Price List

Any
Itemized

44

A method of price quotation showing separately the pricing of the service to be rendered and the price of the casket.

bi-unit pricing

45

A method of price quotation in which the itemized charges are combined into several component parts.

NOT like itemization where it is all broken down

functional pricing

46

Historical method used prior to FTC regulations

A method of price quotation which creates one total price package for both service and merchandise.

unit pricing

47

Any item obtained from a third party and paid by the funeral provider on the purchaser’s behalf.

cash advance

48

Note...cash advance items may include...

Cemetery or crematory service
Casket bearers
Transportation
Clergy honoraria
Flowers
Musicians or singers
Nurses
Obituary notices
Gratuities
Certified copies of death certificates

49

Study this card also...

Common to all forms of price quotations.
Must comply with applicable federal and state laws.
In most states, funeral directors, can only charge the price of the cash advanced items and handling fee – cannot be charged for the these items.

50

Texas does not allow handling fees as long as they are disclosed to the family on the funeral contract.

check this card with Trakesha

51

Review general price list, Merchandise Price List, Outer Burial Container Price List.

Merchandise Presentation

52

a written memorandum – legal contract. Family does not have to pay for embalming when not requested. Texas does not require embalming but if not able to refrigerate body must be embalmed family can refute the charge.

contract

53

a casket manufacture selection room can be located...

funeral home
catalog
computer
separate building

54

order of preference

Main level
Upper level
Lower level

55

preferred level of preference...

MAIN

56

3rd level of preference...

LOWER

57

2nd level of preference...

UPPER

58

Types of selection rooms

Full size caskets
Fractional displays
Quarter or End Panels / Pictures
Catalog
Computers

59

minimum number of caskets in selection room per NATIONAL BOARD

12

60

minimum number of caskets in selection room per Texas Law

5 which would include 2 full size

61

maximum number of caskets in selection room per National Board

30

62

selection room size

40-60 square feet per casket is recommended

63

study card...

LIGHTING – 90 to 100 foot candles of illumination at casket level. Foot candle amount of illumination produced by one candle at a distance of one foot.

64

types of lighting

direct
indirect
fluorescent
incandescent

65

the illumination resulting from the glowing of a heated filament

incandescent

66

reflected illumination of an object

indirect

67

light shining on an object

direct

68

illumination produced by a tubular electric discharge lamp, fluorescence of phosphors coating the inside of a tube.

flourescent

69

distance of casket to the floor in selection room

distance from floor to bottom of casket...26-30 inches

70

A wheeled collapsible support for the casket, used in the funeral home, church, or home.

church truck

71

The stand or support upon which a casket rests in the selection room.

casket stand

72

casket stand is also known as...

casket standard

73

A device upon which two or three caskets are placed, one on top of the other for display.

casket rack

74

Study this list of other displays in selection room

Urns
Outer burial containers
Cremation containers
Memorials
Children’s caskets

75

This is what?

One room – accommodates all caskets
Furniture group (table, lamp, and 2 chairs)
Traffic flow through this room

selection room arrangement

76

several caskets used to familiarize families.

Demonstration Group

77

type of casket arrangement that show an increasing or decreasing in price

consecutive method

78

type of casket arrangement that show woods, copper, etc.

grouping method

79

methods of presentation

direct
indirect

80

The method of selling caskets whereby the funeral director remains in the selection from the entire selection period.

direct selection room presentation

81

advantages of direct selection room presentation

some families prefer the support

82

disadvantages of direct selection room presentation

no privacy & restricts communication
may be an influence
may misrepresent needs of family

83

Makes introductory presentation to family
Leaves the selection room
Returns upon request

indirect selection room presentation

84

advantages of indirect selection room presentation

privacy
communication occurs
influences by FD eliminated
information may be better analyzed

85

Disadvantages of indirect selection room presentation


No support; funeral director not available for questions; information may be ignored.