Quiz - Funeral Services Management - Merchandising

Unit Pricing

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

Wholesale Cost

Cost of merchandise from the manufacturer or wholesaler

Price quotation

method by which prices are explained to the consumer (i.e., itemized GPL required by FTC, but package pricing allowed)

Price determination

method used by management to establish the selling price for services and merchandise.

Gross Profit

net sales minus cost of goods sold; selling price minus wholesale cost

Overhead

operating expenses incurred in normal operation of the business (supplies, electricity, etc.)

Consecutive method

placing caskets for selection in their order of increasing or decreasing value.

Consignment

product given to an agent to be cared for or sold; (i.e.) funeral director has merchandise to display but does not pay for it until it is sold.

Indirect lighting

reflected illumination of an object.

Retail Cost

selling price; price to the customer

Quantity discount

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

Markup

the difference between merchandise cost and selling price (equals retail cost minus wholesale cost)

Fluorescent lighting

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

Incandescent lighting

the illumination resulting from the glowing of a heated filament.

Itemization

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

Indirect selection room procedure

the method of selling merchandise whereby the funeral director does not stay in the selection room during the selection process.

Direct selection room procedure

the method of selling merchandise whereby the funeral director remains in the selection room throughout the selection process.

Sundry items

the miscellaneous items provided or used to complement the services of a funeral director, i.e. register books, acknowledgment cards, memorial folders/programs, religious paraphernalia, flag case, etc.

Sales frequency

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

Merchandising

the purchasing, pricing, display and sale of merchandise.

Rebate

the return of a portion of a payment.

Range

the upper and lower limits of a series of numbers.

Mode

the value that occurs most frequently in a group of numbers.

Direct lighting

illumination directly shining on an object.

Educational group

(aka Demonstration group) three or four caskets utilized to educate the selecting party regarding the elements of casket construction.

Mean

(aka average) the sum of a group of numbers divided by the number of units.

Demonstration group

(aka educational group) three or four caskets utilized to educate the selecting party regarding the elements of casket construction.

Average

(aka mean) the sum of a group of numbers divided by the number of units.

Quartile

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

Halogen lighting

a high intensity light source that produces a clean bright white light approximating natural daylight.

Functional pricing

a method of price quotation in which the charges are broken down into several major component parts such as professional services, facilities, automobile and merchandise.

Bi-unit pricing

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

Fixed multiple

a price determination method whereby the casket cost is multiplied by a constant factor.

Graduated recovery

a pricing method where the mark-up varies.

Package pricing

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

Cash discount

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

Median

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.

Net

amount after all accounting costs are subtracted; "bottom line"

Cash advance items

any item of service or merchandise described to a purchaser as a "cash advance," "accommodation," "cash disbursement," or similar term. Also any item obtained from a third party and paid for by the funeral provider on the purchaser's behalf. Items may include, but not limited to: cemetery or crematory services; pallbearers; public transportation; clergy honoraria; flowers; musicians or singers; nurses; obituary notices; gratuities and death certificates.