Vendors, Buyers & Merchants

FOB

Destination, Freight Collected; occurs when the retail store pays for the shipping fees, but the vendor has ownership of the merchandise being transported

FOB

Origin, Collect; occurs when the supplier (vendor) pays the transit charges, but the retailer owns the merchandise while it is being shipped

FOB

Origin, Freight Collect; occurs when the seller pays for the shipping fees and has ownership of the merchandise while it is being shipped

Promotion

activities designed to communicate with customers and increase the sales of a product or service

Merchandisers

are in charge of increasing the market share of a company's products in retail outlets through the use of displays, stocking, promotional techniques, etc.

Vendors

can also be called suppliers and are either people oDating Termsmr companies that provide merchandise (parts or services) to retail stores

Trade Shows

events that allow companies of specific industries to exhibit, promote and demonstrate their goods and services

Displays

exhibits in stores to present merchandise and allow customers to touch itand try it out before making a purchase

FOB

free on board, meaning that the ownership of the merchandise in the process of being transported determines whether the charge of shipping (freight) is free

Stocking

maintaining merchandise within the store to ensure there is an adequate amount ready to be purchasedles

Centralized Buying

means that a particular department completes merchandise orders for all of the same departments in other stores within the chain

Gifts with Purchase

means that customers receive something extra besides their main purchase, either for free or for an additional charge

Destination, Freight Unpaid

occurs when the vendor is responsible for the shipping charges and they also have ownership of the merchandise in transits

Shipping Terms

pertain to how the merchandise will get from supplier to the retail store, when the ownership of goods transfers from supplier to buyer and who is responsible for shipping charges

Quantity Discounts

provided by suppliers to buyers when they are ordering large quantities of merchandise; also called "bulk"

Carrying Costs

refer to the costs of maintaining inventory in a supplier's warehouse (rent, utilities, insurance, taxes, employee costs, etc.)

Dating Terms

refer to the financial aspect of the deal with a buyer and include the terms regarding the due date of the bill for the merchandise

Buyers

refers to the amount of money left for purchases after other purchases have already been made

Open-to-Buy

refers to the amount of money left for purchases after other purchases have already been made

Free Samples

tends to be effective for products that are first being introduced in the market; can be handed out in stores, mailed to customers, given out in the daily newspaper, etc.

Inventory

the raw materials, work-in-process goods and completed goods that are considered to be the part of a business's assets that are ready or will be ready for selling

Want Slips

used by customers to request specific merchandise when a retailer either does not carry a specific item or they do not have it in stock

Monetary Refunds or Rebates

used to allow customers to submit a receipt or other documents to a manufacturer to receive a portion of their money backs

Competitions and Prizes

used to attract customers to buy a company's products or services and are good for stimulating customer excitement about the company and/or product

Point-of-Sale Displays

used to promote impulse purchases by consumers by placing them in high-traffic areas where they are bound to see them

Decentralized Buying

used when a store that is part of a chain wants to have specific merchandise in their store that other stores within their chain do not carry

Coupons

used when retailers want to offer current and prospective customers discounts on their products

Cutomer Loyalty

when a customer is bound to a certain brand and makes repeat purchases from them and does not make purchases from another brand with the same type of product

Market Share

where a company stands in relation to its competitors; equals a firm's total sales ÷ total market sales