Vendors, Buyers & Merchandisers

The financial aspect of the deal with the buyer

Dating terms refers to

Want slips

Decentralized buying is sometimes the result of these

Buyer

Deciding how much money is available for purchasing, selecting a vendor and negotiating terms with the chosen vendor are this person's responsibilities

Free/Freight on Board

FOB is an acronym for

Those first being introduced in the market

Free samples can be effective for these kinds of products

Arranging product displays

NOT a function of a vendor

Delivering merchandise

NOT a responsibility of a buyer

Eating in the booth

NOT encouraged for vendors at trade shows

The amount of money left for purchases after other purchases have already been made

Open-to-buy refers to

Maintaining merchandise within the store to ensure there is an adequate amount ready to be purchased

Stocking refers to

Fill out a want slip

Suppose a customer goes to Bed, Bath & Beyond® hoping to find a specific type of bed linen. They do not carry the linen, so the store suggests the customer does this

Customer loyalty

Suppose a customer purchases Tide® laundry detergent every time they make a trip to the grocery store. Even when there is a sale on three other kinds of detergent, the customer always chooses Tide®. This is an example of

$4,823 - ($4,823 x .02) = $4,726.54

Suppose a retailer makes a purchase costing $4,823 from a vendor and then makes a payment in full within nine days of the purchase. If the bill is written with a 2/10 net 30, the buyer would get a two percent discount. This how much the total would be.

FOB: origin, freight prepaid

Suppose a vendor starts selling tires fills an order for Wal-Mart® and agrees to pay the shipping, but Wal-Mart® has ownership of the tires while they are being shipped. This is this kind of FOB

$6,392 - ($3,866 + $1,302) = $1,244

This is a company's open-to-buy amount if it has planned purchases costing$6,392, merchandise received costing $3,866 and merchandise ordered costing $1,302

When a store which is part of a chain wants to have specific merchandise other stores within their chain do not carry

When decentralized buying is used

Event allowing companies of specific industries to exhibit, promote and demonstrate their goods and services

a trade show is

Companies can reach many more potential customers compared to other methods of selling and promotions

an advantage of trade shows

Suppliers

another term for vendors

Retail stores which purchase merchandise from vendors

describes buyers

People or companies which supply merchandise, parts or services to retail stores

describes vendors

Market share

describes where a company stands in relation to its competitors

Setting goals and objectives ahead of time

encouraged for buyers to do at trade shows

The retailer will receive a two percent discount on the order if the bill is paid within ten days of the purchase statement; if not, the full amount is due within 30 days of purchase

meaning of the dating term 2/10, net 30

Magazines

often contains free samples for perfume and makeup

They are used by customers to request specific merchandise when a retailer either does not carry a specific item or the item is not in stock

purpose of a want slip

To promote impulse purchases by placing products in high-traffic areas

purpose of point-of-sale displays

Planned purchases - (merchandise received + merchandise ordered)

the formula for calculating open-to-buy amounts

To attempt to maximize the redemption rate

the purpose of a retailer offering a coupon

10,000

the typical number of attendees for trade shows, NOT including exhibitors