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HUEC 3043 Exam 1 Sheet Terms

HUEC 3043 Exam 1 Sheet Terms - Merchandising strategies...

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Merchandising strategies conceived: by retailer and executed by buyer. Buying at cost and selling at retail: cornerstones of the buyer’s job . 3 elementary factors: retail, cost, and profit. Retailing is the many activities involved in selling small quantities of goods and/or services at a profit to the ultimate consumer. Merchandising “rights”: merchandise, price, quantity, place, and time. Profit: #1 goal of any retail company; bottom line matters most; make money by spending money. Each buying type uses the EXACT same Acct/Merch. 3 Approaches to raise profit: increase sales with proportionate increase in cost/expenses, decrease cost of goods without decreasing sales, lower expenses. Cost: the amount the retailer pays for these purchases. Retail: the price at which stores offer merchandise for sale to the consumer. Because the buyer buys and prices the merchandise offered fro sale in a retail store, the buyer must have the ability to know, manipulate, and understand the interaction among the five basic profit factors, which are operating income (sales or sales volume), which indicates in dollars how much merch has been sold; cost of goods sold which shows the amount paid for the goods sold; which results in gross margin when the total cost of goods is subtracted from the net sales; the operating expenses which refers to those expenses other than the cost of the goods, incurred in the buying/selling process.
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