4046 Cheat Sheet

4046 Cheat Sheet - Chapter 13: (Buying Merch) - National...

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Chapter 13: (Buying Merch) - National Brands : Vendors; ***adv/dis Buying: 5-6 times a year, without OTB for changes Buying Staples: less frequent, continuous replenishment Meeting Vendors: Wholesale Market centers; trade shows; Internet Exchanges Process: Meet w/ vendors, discuss performance of merch. in previous season, review offering for coming season, may place orders, sometimes don’t buy – return to discuss with team, “writing paper”) - Private-Label : Retailers (family brand approach (Gap, VS) or portfolio approach (Macy’s) – private label w/ diff. merch. types) ***adv/dis Types: Premium, copycat, exclusive**, generic Developing/Sourcing: In-house, Acquisition, Outsource Reverse Auctions: one buyer (retailer), multiple sellers (manufacturers); retailer not required to pick lowest bidder; based on price, not quality or service Global Sourcing: Costs and Managerial Issues** - -Negotiating : price & gross margin (margin guarantees/markdown $, slotting allowances); additional markup opportunities; terms of purchase; exclusivity; advertising allowances (co-op advertising); transportation -Strategic Relationships : mutual trust, open communication, common goals, credible commitments -Building Relationships : Discrete or Partnering; awareness, exploration, expansion, commitment -Legal: Terms of purchase (Robinson-Patman Act/Anti-Chain-Store Act); commercial bribery (“something of value”); chargebacks (deductions w/o vendor approval); buybacks; counterfeit merch.; gray-market (not counterfeit, legal); diverted merch. (same as GM, except need not be across international boundaries); black market (scarce goods, heavily taxed or illegal); exclusive dealing (restrict retailer to carry only their merch. and not competitors); tying contracts; refusals to deal; resale price maintenance (MSRP; RPM reduces free riding; legal as long as promotes inter-brand comp.) Chapter 14: (Pricing) - value = perceived benefits / price - High/Low : increase profit-price dis.; sales=excitement; short-term sales & generates traffic/customers wait & buy on deal; adverse effect on profits; price wars - Everyday Low : assures low prices; reduces advertising & operating expenses; better supply chain man. (fewer
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4046 Cheat Sheet - Chapter 13: (Buying Merch) - National...

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