FSE2201 Funeral Home Mngt. Oper. Study Guide 3.1

What is usually done with those slow moving items which do not sell in a reasonable amount of time

The price is lowered until it is of a perceived value to the customer

Define Merchandising

The purchasing, pricing, display and sale of merchandise

Define the economic base of a community

The wealth produced in or near a community that provides employment and income to the local population

The merchandising agreement whereby merchandise is given to the funeral director to sell but the funeral director does not have to pay for the merchandise that will be displayed until it is sold.

consignment

What 2 buying motives influence most funeral home purchases

convenience, economy

The statistical study of human populations with respect to their size and density distribution, composition, and income

demographics

Those goods or stock which are held for resale

inventory

The number of times the average inventory has been sold or used up during a period

inventory turnover

Why is advertising important to a funeral home

it's making the public aware of services or a commodity that a business has for sale; name recognition, attracts people to the firm, helps build a good reputation, helps build preference before need

A group of potential customers possessing purchasing power and unsatisfied needs

market

The process of planning and executing the development pricing, promotion, and distribution of an organization's goods or services

marketing

A return of a portion of a payment

rebate

List some public relations Ideas that are listed in the notes which will help the funeral director to better educate his/her community

1. Provide a complete range of prices 2. Freedom of choice in the selection of merchandise and services 3. Easy to understand the selections

What is meant on a invoice that says 3/15 n/45 as the terms of a credit sale

3% discount if paid in 15 days and the entire bill is due in 45 days

Define Trade Credit

A form of credit that is extended by one business to another business to help finance distribution of producer's goods

Define a sales promotion

A plan which provides inducements to potential purchases of products and/or services

A method of classifying inventory items with categories which are of high-value less costly, and/or low-cost items. The funeral director will have a large quantity of low-cost items on hand, very few high-cost items and a moderate number of the middle items

ABC Method of Inventory Control

Making the public aware of services or a commodity that a business has for sale.

Advertising

What does the credit / sales term CWO mean

Cash With Order - Payable at the time of the order

What does the credit / sales term CBD mean

Cash before delivery - payable prior to delivery

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

Cash discount

What does the credit / sales term COD mean

Cash on Delivery - payable at the time the consumer receives goods.

List some sources of secondary market data

Chamber of Commerce, Census Bureau, local demographics

List and describe the 6 consumer buying motives

Comfort, security, prestige(status), health, convenience, economy(cost)

The quantity to be purchased which minimizes total cost

Economic Order Quantity (EOQ)

What is the instructor's opinion of what merchandising includes

Educating the consumer on the products which are available

What does the credit term EOM mean

Payable at the End of Month

What does the credit term MOM mean

Payable at the Middle of Month

What are 5 of the factors in determining inventory to be offered

Product availability, price, quality, eye appeal, supplier recommendations

Inducing the public to have a positive feeling about a particular business

Public relations

Reduction in the amount of a bill when a minimum quantity of merchandise has been ordered

Quantity discount

What are the 4 steps to developing sales objectives

-Evaluate the market -evaluate the sales history -develop a proposed plan for inventory items -integrate the inventory products with the services offered