Flashcards in 3rd Quarter Merchandising Test 4 Deck (85):
merchandising plan is also known as...
sales objective or
profit (built into service fees)
Selection of merchandise
Cost and pricing
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
considerations when selecting suppliers
availability of product
types of payment terms
Reduction of price for payment of an account within time limits.
Established by the sales contract.
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
Reduction in amount of a bill when a minimum quantity of merchandise has been ordered.
quantity discount (EOQ)
what items would a quantity discount be used on?
return of a portion of a payment
giving merchandise to an agent to be cared for or sold.
Payment is not made to the supplier until the merchandise is sold.
What are these methods of?
Consumer value index
Merchandise value ratio
methods of determining prices
Difference between merchandise (wholesale) cost and selling (retail) price.
Retail - wholesale = _________
markup is also known as...
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)
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)
Staff services: such as... for obits, DC's, papwerwork, etc.
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 should be....
A price determination method whereby the casket cost is multiplied by a constant factor. (number)
Historically the fixed number has been three (3).
advantage of fixed multiple
easy to use and provides quality
disadvantage of fixed multiple
no improvement in CVI
no incentive to buy up
The return of money produced by varying the amount expected on each selection.
The amount of markup varies with the cost of the merchandise.
types of graduated recovery
increase is less favorable with this...
markup the more expensive caskets
most win-win situation
encourages consumers to buy better merchandise....provides for families who require lower priced caskets
Sales trend terminology
average also known as...
the sum of a group of numbers divided by the number of units.
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.
the number that appears most frequently in a listing of numbers.
a division of the total into four intervals, each one representing one-fourth of the total.
find definition for this...
caskets sold in 2nd and 3rd quartile (Most people select in the middle)
people usually begin in ______ price or move either direction
The number of times sales in a given price bracket occurs over a fixed period of time.
different methods of price quotations...
Unit pricing (historical method)
The method of price quotation by which each unit of service and/or merchandise is priced separately.
Requirements of FTC
The pricing method which groups together selected services and/or merchandise.
examples of package pricing
FTC STATES....that ______ pricing method is acceptable if family receives an _________ General Price List
A method of price quotation showing separately the pricing of the service to be rendered and the price of the casket.
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
Historical method used prior to FTC regulations
A method of price quotation which creates one total price package for both service and merchandise.
Any item obtained from a third party and paid by the funeral provider on the purchaser’s behalf.
Note...cash advance items may include...
Cemetery or crematory service
Musicians or singers
Certified copies of death certificates
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.
Texas does not allow handling fees as long as they are disclosed to the family on the funeral contract.
check this card with Trakesha
Review general price list, Merchandise Price List, Outer Burial Container Price List.
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.
a casket manufacture selection room can be located...
order of preference
preferred level of preference...
3rd level of preference...
2nd level of preference...
Types of selection rooms
Full size caskets
Quarter or End Panels / Pictures
minimum number of caskets in selection room per NATIONAL BOARD
minimum number of caskets in selection room per Texas Law
5 which would include 2 full size
maximum number of caskets in selection room per National Board
selection room size
40-60 square feet per casket is recommended
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.
types of lighting
the illumination resulting from the glowing of a heated filament
reflected illumination of an object
light shining on an object
illumination produced by a tubular electric discharge lamp, fluorescence of phosphors coating the inside of a tube.
distance of casket to the floor in selection room
distance from floor to bottom of casket...26-30 inches
A wheeled collapsible support for the casket, used in the funeral home, church, or home.
The stand or support upon which a casket rests in the selection room.
casket stand is also known as...
A device upon which two or three caskets are placed, one on top of the other for display.
Study this list of other displays in selection room
Outer burial containers
This is what?
One room – accommodates all caskets
Furniture group (table, lamp, and 2 chairs)
Traffic flow through this room
selection room arrangement
several caskets used to familiarize families.
type of casket arrangement that show an increasing or decreasing in price
type of casket arrangement that show woods, copper, etc.
methods of presentation
The method of selling caskets whereby the funeral director remains in the selection from the entire selection period.
direct selection room presentation
advantages of direct selection room presentation
some families prefer the support
disadvantages of direct selection room presentation
no privacy & restricts communication
may be an influence
may misrepresent needs of family
Makes introductory presentation to family
Leaves the selection room
Returns upon request
indirect selection room presentation
advantages of indirect selection room presentation
influences by FD eliminated
information may be better analyzed