Arts - Merchandising Terminology

gross casket profit (margin)

retail price - wholesale cost; measures profit of each casket to the funeral director/firm

consignment

the funeral director does not have to pay for the merchandise that will be displayed until it is sold

inventory turnover

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

consumer value index (CVI)

the percentage derived by dividing the wholesale amount of the merchandise by the retail price of the merchandise; measures the value received for each dollar spent by the consumer

economic order quantity (EOQ)

the quantity to be purchased which minimizes total costs

merchandise value ratio (MVR)

the relationship between the wholesale cost of the merchandise and the total cost of both service and merchandise to the consumer

functional pricing

a method of pricing by which the charges are broken down into several component parts

bi-unit pricing

a method of pricing that shows the price of the services and the price of the casket separately

package pricing

a method of pricing where certain items of service and merchandise are grouped together and sold at aa specific price

unit pricing

a method of pricing which creates one total price package for both service and merchandise

fixed multiple or times factor

a price determination method whereby the mark-up is multiplied by a constant factor

graduated recovery

a pricing method where the mark-up varies; higher priced caskets are given a higher mark-up

declining price structure

a pricing method where there is an inverse relationship between the markup and the price of the casket; higher priced caskets given a lower mark-up

rebate

a return of a portion of a payment