Unit V - UnitV DollarPlanningand Control...

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Unit V Dollar Planning and  Control
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Dollar Merchandise Plan The objectives of a dollar plan are: 1. To procure a net profit by providing an  instrument that plans, forecasts, and controls the  purchase and sales of merchandise. 2. To research previous results to repeat and  improve prior success and to avoid failures 3. To integrate the various merchandising activities  involved in determining the purchases necessary  to achieve the estimated planned sales.
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Planning Sales The planning of this figure is most significant  because it is the basis for establishing the stock,  markdown, and purchase figures—thus it should  be calculated first.
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Planning Sales STEP 1: Carefully forecast future dollar sales volume for the  entire period by: (a) Reviewing and analyzing past sales performance for the  same period. (b) Considering factors that may cause a change in sales  Current sales trend Previous rate of growth patterns Economic conditions Local business conditions Fashion factors Influencing conditions within and from outside the store or   department, (e.g., changes in store concepts, market direction, 
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Planning Sales (c) Establishing, for the season, a percentage of       estimated sales change after analyzing the sales  performance and current conditions that cause  sales changes and then calculating the total  dollar sales volume for the period. There are circumstances under which the sales  volume of a department or a classification is  reduced because of a decreased demand. This  concept also applies for an increase in demand.
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Planning Sales STEP 2:   To set the individual monthly sales goals, use the seasonal  distribution of the previous year’s sales for the same period as  a guideline.
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This note was uploaded on 04/02/2012 for the course CTE 4822 taught by Professor Karlarenton during the Spring '12 term at Florida State College.

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Unit V - UnitV DollarPlanningand Control...

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