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