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