Funeral Merchandising: Pricing

Median

(In a value ordered set of numbers) the midpoint/middle number, or the mean of the two middle numbers if necessary.

Median

(In a value ordered set of numbers) the midpoint/middle number.

Increasing graduated recovery disadvantages

-Consumers are discouraged from buying high end products -Retailer receives the least amount of profit on lower end items -Awkward prices

Modified graduated recovery advantages

-Lower end products are affordable -Consumers encouraged to buy up

Fixed multiple disadvantages

-No CVI improvement -No enticement to buy anything more expensive -Awkward retail prices

Fixed dollar amount disadvantages

-Penalizes lower end purchases -Awkward pricing

Fixed dollar amount advantages

-Simple -Increase in CVI

Generally, a multiple is between

2-4

Most inventory should fall into which quartile?

3rd

Fixed multiple markup

A price determination method whereby item cost is multiplied by a constant factor.

Graduated recovery markup

A pricing method where markup varies.

Vertical merchandising pricing

A range of selection prices with obvious value progression.

Horizontal merchandising pricing

A range of selections at each price point.

Consumerized pricing

An adjustment of awkward prices that creates familiar figures to consumers.

Cash advance items

Any item obtained from a third party and paid for by the funeral home on the purchaser's behalf.

The greatest selection should exist

At or slightly above the targeted sales objective.

With sales frequency data, funeral homes must walk the line between

CVI and profits

Increasing graduated recovery advantages

CVI is high on lower end merchandise

Decreasing graduated recovery advantages

Consumers are encouraged to buy higher value items

Most and least expensive caskets

Creates a perceived middle price and provides bench marks you the customer.

Decreasing graduated recovery is AKA

Declining price structure

Lower priced caskets cannot look too good as to

Dissuade a purchase of a higher end product.

Quartiles

Division of the total into 4 segments; each one representing 1/4 of the total.

In a fixed dollar amount, a specified

Dollar amount will be added to the retail price of an item.

The inclusion of cents gives the impression that something is ____ than it actually is.

Higher

If retail price is lowered, the CVI

Increases

If the retail price is lowered, the MVR

Increases

Increasing graduated recovery

Lower end merchandise receives a lower markup and higher end merchandise receives a higher markup.

Modified graduated recovery disadvantages

Lowest CVI is in the middle

Mark up is AKA

Margin or Gross Casket Margin

Itemization

Method of price quotation by which each unit of service or merchandise is prices separately.

Unit pricing

Method of price quotation that includes both the casket price and the service charge.

Functional pricing

Method of price quotation that is broken down into several major component parts such as person services, facilities, automobile, merchandise, etc.

Bi-unit pricing

Method of price quotation that shows the price of the service and the price of the casket.

Package pricing

Method of price quotation which groups together selected services or merchandise.

Price determination

Method used to establish the selling price for services and merchandise.

Modified graduated recovery is AKA

Modified declining price model

Mode

Most frequently occurring number in a group.

Decreasing graduated recovery disadvantages

People purchasing at the lower end are penalized

A multiple is expressed as a

Percentage. Ex)250% = 2.5 multiple

Fixed dollar amount markup

Pricing determined by the amount of profit necessary on each sale.

Modified graduated recovery markup

Similar to decreasing graduated recovery but, lower end items receive a less aggressive markup.

Fixed multiple advantages

Simple

Average

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

Mark up

The difference between merchandise cost and selling price.

Sales frequency data markup

The number of times sales in a given price bracket occurs over a fixed period of time. This requires listening to consumers.

Consumer value index CVI

The percentage derived by dividing the whole sale cost of the merchandise by the retail price of the merchandise.

Merchandise value ratio MVR

The relationship between the wholesale cost and the total cost of both services and merchandise to the customer.

Lower prices caskets should look good to

Those who can afford it

Fixed multiple is AKA

Times factor or Straight line

Range

Upper and lower limits of a series of numbers.

Decreasing graduated recovery

Upper range merchandise receives a lower markup and lower end products receives a higher markup.