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Flashcards in Exam 1 Deck (108):
1

Purchasing, pricing, display, and sale of merchandise

Merchandising

2

Merchandise includes but is not limited to

Caskets and burial containers
OBCs
Cremation and alternative containers
Urns and cremation oriented products
Monuments, memorials, cemetery merchandise
Burial Clothing
Personalization options
Sundry items

3

What is the order of the PRD?

Spouse/Domestic Partner
Adult Children
Parents
Adult Siblings

4

Personalization is an _________ not just products

Attitude

5

_________________ enhances the experience

Products and Merchandise

6

Name some personalization options

Casket
Environment in funeral home
Music
Hobbies of deceased

7

Any funeral in which your normal regular pricing quotation is applied

Adult Formula Service

8

The total package of service from first call to post funeral counseling

Adult Formula Service

9

NMS

National Mortuary Shipping

10

Any service where your normal pricing quotation is NOT used, in effect only a partial service sale

Adult Non-Formula Service

11

What are some examples of Adult Non-formula service?

Ship in
Ship out
Contract funerals
Indigent cases
Memorial Society contract
Full service followed by cremation
Stillborns to children

12

One of the primary responsibilities of any business is to do what?

Generate enough profit to ensure its existence and ability to continue serving its clientele

13

How is profit accomplished?

Evaluate the market
Scrutinize sales history
Considerations regarding merchandise it plans to offer
Integrate product line with its existing service offerings

14

Evaluating the market includes

Demographics, vital statistics, economic base, and burial habits

15

How often should you evaluate your sales history?

6 months

16

To obtain by paying money or its equivalent to buy for a price

Purchasing

17

This will help maintain a balanced line in the selection room

Planned Buying

18

How many people should be assigned to purchasing per funeral home?

1

19

Why should a sales person never be allowed in your selection room?

Never let them see what you are buying
Never let them see who you are buying from
Never let them see your retail price

20

A reduction of the price given for payment of an account within the time limits established by the sales contract

Cash Discount

21

The amount by which the bill or invoice will be reduced when a minimum quantity of merchandise has been ordered

Quantity Discount

22

The return of a pertion of a payment

Rebate

23

To give an agent to be cared for or sold

Consignment

24

Successful merchandising of funeral goods will deliver __________ to the consuming public while simultaneously positively impacting funeral home operating revenue

Maximum Value

25

The purchasing, pricing, display, and sale of merchandise is

Merchandising

26

Critical to any funeral firm's achieving its target profit is the careful development of __________

Sales Objectives

27

A reduction of the price given for payment of an account within the time limits established by the sales contract

Cash Discount

28

The amount by which the bill or invoice will be reduced when a minimum quantity of merchandise has been ordered

Quantity Discount

29

List the sales questions that must be answered as a funeral home develops its sales objectives

Evaluate the Market
Scrutinize sales history
What merchandising
Integrate proposed product line with existing offerings

30

The FTC requires funeral directors use what pricing system

Itemized

31

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

Itemization

32

You can still offer packages as long as this happens

The family receives a fully itemized price list

33

A method of price quotation in which one price includes both service and casket

Unit Pricing

34

Developed between 1925 and 1937 to overcome multiunit pricing

Unit Pricing

35

This was the most significant in the development of the packaged funeral (unit pricing)

The Great Depression

36

Unit pricing eliminates what between services and merchandise

Arbitrary Division

37

Unit Pricing shows families total cost without bothersome details. This is known as

Bottom Line Philosophy

38

Unit pricing simplifies what?

Accounting and billing

39

Unit pricing simplifies explanation and is easily

Explained

40

Unit Pricing exaggerates the importance of this

Casket

41

Unit Pricing minimizes the importance of this

Service

42

Economically depressed consumers are usually subsidized by this in unit pricing

More Expensive packages

43

The consumer is unable to do this in unit pricing

Make a free selection of components

44

This is the only basis of comparison with competition in unit pricing

Total Price

45

Unit pricing fails to educate the consumers on this

The true value of merchandise and service on the retail level

46

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

Bi-Unit Pricing

47

The funeral directors who had no selection room were forced into this system out of necessity

Bi-Unit Pricing

48

Why did funeral directors start using the bi-unit pricing strategy

They wanted to be seen as professionals

49

What came from the need for the funeral directors to be seen as professionals?

The professional service charge

50

Bi-unit pricing puts an emphasis on this, as well as merchandise

Service

51

Consumers recognize this in bi-unit pricing

The value of service

52

Bi-unit pricing permits

Equal charge for equal service

53

Bi-Unit Pricing facilitates comparison between

Caskets and other commodities

54

The division between service and merchandise in Bi-Unit Pricing is still arbitrary, so the question remains

Where to put overhead, where to put profit

55

Bi-unit pricing may create _______ for the consumer

Confusion

56

Bi-Unit pricing does not give the consumer freedom to

select components

57

Each and every function, unit of service and item of merchandise is priced separately

Full Itemization

58

Sometimes referred to as the historical pricing method

Full Itemization

59

What are the common units in full itemization

Professional Services
Use of Facilities
Automotive Equipment
Merchandise

60

Full itemization gives the consumer a _______ of the charge

Clear Understanding

61

Services and merchandise are more thoroughly discussed in full itemization, and consumers are made to realize

All the components of a funeral

62

What is the only non-declinable fee on the price list?

Professional services fee

63

Charges broken down into several major component parts

Functional Pricing

64

How many parts are normally in the Functional Pricing method

4

65

What are the 4 components normally found in Functional Pricing?

Professional Service
Use of facilities
Rolling Stock
Merchandise

66

Functional pricing was initiated to do what?

Impart more knowledge to the consumer

67

Functional pricing was designed to bring ________________

Uniform order

68

FTC requires _________

further itemization

69

Functional Pricing was designed as a compromise to do what?

reduce pressure against funeral service by memorial societies

70

Items obtained from a third party and paid for by the funeral provider on the purchaser's behalf

Cash Advance items

71

Cash Advance Items include

Clergy
Death Notice
Certified copies of death certificate
Cemetery or crematory charges
Shipping costs
Flowers
Any other cash accomodation

72

The difference between merchandise cost and selling price

Markup

73

Wholesale cost / Retail Price

Consumer Value Index

74

Wholesale cost / (Total merchandise + services)

Merchandise Value Ratio

75

A pricing strategy in which a fixed amount chosen by determining the amount of profit it wishes to generate is added to every casket

Fixed Dollar Amount Method

76

What is a major disadvantage to the Fixed Dollar Amount Method

Consumers that buy low end merchandise are unfairly penalized and receive little value for their dollar

77

A price determination method whereby the mark-up is multiplied by a constant factor; Same mark-up applied to all caskets

Fixed Multiple Method

78

A pricing method where the mark up varies; Higher priced caskets are given a higher mark up

Graduated Recovery

79

A pricing method where there is an inverse relationship between the markup and the price of the casket; Higher caskets are given a lower markup

Declining Price Structure

80

Similar to declining method except the lowest priced casket is less expensive

Modified Declining Price

81

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

Average

82

A value in an ordered set of values which represents the midpoint, whereby there are an equal number of values above and below the midpoint value

Median

83

The number that appears most frequently in a listing of numbers

Mode

84

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

Quartile

85

The caskets sold in the 2nd and 3rd quartile

Range

86

An out of date term used to describe having the correct number of caskets in each pricing quartile

Balanced Line

87

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

Sales Frequency

88

A chart on which all sales are listed showing the number of sales in any sales bracket

Sales frequency Chart

89

The total number of units divided by 4

Unit Quartiles

90

Division into fourths by price

Price Quartiles

91

How many caskets should be in your display room

12-30

92

How big should the display room be?

40-60 square feet per casket

93

Amount of illumination produced by a source of one candle at a distance of one foot

Foot Candle

94

How many foot candles should be in the display room

90-100

95

Placing the caskets for selection in their order of increasing or decreasing value

Consecutive method

96

Caskets grouped according to their relative positions within the value/price progression

Good-better-best

97

The use of portions of caskets instead of full sized caskets

Fractional Display

98

What is the difference between vaults and liners

Vaults seal; liners do not

99

The process by which the consumer is informed about the products about to be purchased

Presentation

100

There should be three constants for the presentation for every family coming into the arrangement room

Consumer receives the information he/she needs
Information given in patient and gentle manner
Try to reduce the family's apprehension

101

The method whereby the selection of the casket is made with the funeral director present

Direct Selection room procedure

102

The method whereby the selection of the casket is made without the funeral director present

Indirect Selection room procedure

103

A statement signed by the funeral director and the client or representative with copies retained by each party

Statement of Funeral Goods and Services Selected

104

The Statement of Funeral Goods and Services Selected should be in TRIPLICATE

1 - goes in funeral home record
2 - Family
3 - Accountant

105

The FTC and other are seeking to require by law a minimum of ___ area on the statement of funeral goods and services selected

7

106

What are the areas that the FTC requires to be on the statement of funeral goods and services selected

Professional Service Charge
Use of Facilities
Itemized cost of merchandise
Itemized costs of cash advancements
Clear and concise terms of payment
Itemized costs of rolling stock
Consumer clause and rage of merchandise

107

There should be how many price sheets?

4

108

What are the 4 different price sheets?

GPL
CPL
OBCPL
Statement of funeral goods and services selected