NBE Studying: Merchandise

what is merchandise?

goods that are bought and sold

what is merchandising?

purchase, display, and sales of goods

what is a merchandising plan?

types of caskets, vaults, urns, etc. that a director shows, their cost, and how they are displayed

what is customer value based pricing?

effective, customer value based pricing involves understanding how much value consumers place on the benefits they receive from the product, then setting a price that captures that value

what are fixed costs?

overhead costs, do not vary with production or sales level - ex. monthly rent, salaries

what are variable costs?

vary directly with level of production - ex. making cars, parts of cars vary with amount of units produced 

what are total costs?

sum of the fixed and variable costs for any given level of production

what is competition based pricing?

focuses solely on what the competition is charging, and strive to meet or beat those prices

what is pricing determination?

method used by management to establish the selling price for services and merchandise

what is a mark up?

difference between merchandise cost and selling price, also known as gross margin

what is a fixed multiple?

also known as times factor, set number wholesale price is multiplied by

what is a percent?

fixed percent that is added to price

what is a fixed dollar amount?

adding same dollar amount to wholesale cost each time

what is a consumer value index?

percentage derived by dividing the wholesale amount of the merchandise by retail price of the merchandise 

what is a gross casket profit/margin?

retail price minus wholesale cost equals margin

what is a price gap?

difference in the retail price of the next unit below

what is a fixed multiple?

method where the mark up is multiplied by a constant factor, same applied to all caskets

what is a graduated recovery?

pricing method where mark up varies, higher caskets given higher mark up

what is a declining price structure?

pricing method where there is an inverse relationship between markup and the price of the casket, higher priced caskets given lower markup

what is a modified declining price?

same as declining method but with lower markups at very bottom end

what is a mean?

sum of group of numbers divided by number of units

what is a median?

value in an order set of values which represents the midpoint, whereby there an equal number of values above and below the midpoint value 

what is a mode?

number that appears most frequently in a listing of numbers

what is a quartile?

division of total into four intervals, each one representing ¼ of the total

what is a range?

caskets sold in 2nd and 3rd quartile, between a given upper and lower boundary of numbers

what is itemization?

each unit of service and merchandise priced separately 

what is unit pricing?

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

what is bi-unit pricing?

method of price quotation showing separately the price of services and the casket

what is functional pricing?

method of price quotation by which charges are broken down into several component parts, such as professional services, facilities, automobiles and merchandise

what is package pricing?

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

what is a cash advance item?

any item of service or merchandise described to a purchaser as a ‘cash advanced’ or similar term - any item obtained from a third party and paid for by the funeral provider of the purchaser’s behalf

what is sales frequency?

number of times sales in a given price bracket occurring over a fixed period of time

what is a sales frequency chart?

any chart on which all sales are listed showing the number of sales in any sales bracket

what is the order of preference for where a casket display room should be?

• main floor

• upper floor

• lower floor

what lighting is best for a casket display room?

indirect, recessed incandescent

what foot candles are optimal?

90 - 100, ideally at pillow height

what does foot candle mean?

amount of illumination produced by one candle at a distance of one foot

what is fluorescent?

electric discharge in tube 

what is incandescent?

glowing of heated filament

what is direct?

light directly shining on an object

what is indirect?

reflected illumination of an object

what is a casket stand?

stand or support upon which a casket rests in the selection room, should be sturdy and attractive 

what is a church truck?

wheeled, collapsible support for casket, used in funeral home, church, or other location when moving caskets

what is a casket bier?

typically a stand upon which a casket is placed for viewing and services, but sometimes a means of merchandise display

what is the upper and lower range for caskets that should be displayed at once?

minimum 12, maximum 30, ideally 40-60 sq.ft per casket

what is the consecutive method?

caskets arranged in order of increasing or decreasing price 

what is alternative pricing arrangement?

each group of caskets have a low, medium and high cost casket in one area

what is a demonstration group of caskets?

group of caskets used to educate the selecting party on construction, casket differences, features that affect price, where prices are found

what is a direct selection room procedure?

funeral director remains in selection room through process

what is an indirect selection room procedure?

funeral director does not stay in selection room during process 

what are some ways you could arrange caskets?

consecutively, by material, by alternative pricing, by appearance

what is a grave box?

outer enclosure consisting of a body and a one or two piece lid 

what is a grave liner?

outer enclosure, which offers protection from earth load but without protection from elements, do not seal

what is a graveside service?

ceremony commemorating the deceased at the place of final disposition

what is halogen lighting?

a high intensity light source that produces a white light approximating natural daylight

what is hammertone finish?

a sprayed finish that has the appearance of small indentations in the metal (as if struck by a ballpeen hammer); the indentations are in the paint and appear as the paint dries

what is hardware?

the handles, ornamental fixtures and their fittings that are attached to the casket shell

what is hardwood?

any tough, heavy timber with a compact texture; any deciduous tree - any tree that loses its leaves annually

what is header flange?

the turned under edge or horizontal portion of the header of the casket cap

what is a head panel?

a component part of the casket interior which is inside the head portion of the cap; no distinction is made between the head panel and foot panel in full couch caskets

what is hermetically sealed?

airtight; impervious to external influence; completely sealed by fusion or soldering

what is a hinge cover?

that portion of the casket interior covering the hinges that attach the casket cap to the casket body; usually extends from the roll and becomes a part of the body lining

what is horizontal tablet?

type of cemetery monument in which the die is wider than it is tall

what is immediate burial?

a disposition of human remains by burial without formal viewing, visitation or ceremony with the body present, except for a graveside service

what is incandescent lighting?

illumination resulting from the glowing of a heated filament

what is indirect lighting?

reflected illumination of an object

what is indirect selection room procedure?

method of selling merchandise whereby the funeral director does not stay in the selection room during the selection process

what are inner panels?

functional or ornamental covering that usually covers the foot end of the casket in the full couch casket; may be located at both the head and foot of the full couch casket

what is itemization?

method of price quotation by which each unit of goods and services is priced separately

what is laminate?

made by bonding superimposed layers of different materials

what is lawncrypt?

grave space where two or more persons may be buried in grave liners, which have been stacked one on top of the other with the first person who dies being buried in the deepest grave liner

what is LED lighting?

light emitting diode lighting; a semiconductor device that converts electricity into light; noted for its high energy savings and long-lasting durability

what is linen?

fabric made from flax; noted for its strength, coolness, and luster

what is a lot?

a subdivision of a cemetery which consists of several graves or interment spaces

what is a marker?

object, usually of one piece, used to identify individual graves

what is a markup?

difference between merchandise cost and selling price

what is masselin?

pressed paper in sheet form; used in casket construction as a backing(upholstery) material

what is a mattress cover?

interior cloth or material, which covers the mattress or bedding of the casket 

what is a mausoleum?

above ground structure or building containing crypts or vaults for entombment of caskets; may also include niches for cremated remains

what is a median?

a value in an ordered set of values which represents the midpoint, whereby there are an equal number of values above and below the midpoint value

what is a memorial?

physical object that is designed for the purpose of remembering an individual, group, or event

what is a memorial park?

a cemetery or section of a cemetery with only flush to the ground type markers

what is a memorial service?

a ceremony commemorating the deceased without the body present

what is merchandising?

the purchasing, pricing, display and sale of goods and services

what is a ziegler case?

gasketed container, which can be used as an insert in a casket or as a seperate shipping container

what is a mode?

value that occurs most frequently in a set of numbers 

what is a monument?

structure of stone or metal erected to commemorate the life, deeds or career of a deceased person

what is natural lighting?

illumination by the sun

what is a niche?

recess or space in a columbarium used for the permanent placing of cremated remains

what is nonferrous metal?

any metal not formed from iron

what is an ogee?

s shaped molding that is a component part of the casket cap

what is an ogee flange?

turned under edge or horizontal portion of the casket rim which comes into contact with the gasket or body ledge flange

what is an ossuary?

receptacle for communal placement of cremated or skeletal remains 

what is an outer burial container?

any container, which is designed for placement in grave around the casket or urn including, but not limited to, containers commonly known as burial vaults, grave boxes and grave liners

what is an overlay?

the aesthetic covering for the foot cap or inner foot panel of the casket

what is package pricing?

pricing method using a single dollar amount to identify the charge for a group or bundle of goods and services

what is perfection full couch?

casket in which the rim, crown, and pies are formed as one unit and which opens as one piece 

what is a perfection half couch?

casket in which rim, crown and pies are formed as one unit with a transverse cut in the cap, forming a two piece lid for the casket

what is plastic?

synthetic or natural organic polymers shaped when soft and then hardened

what is plastic extrusion molding?

method of forming items by injecting molten plastic into a die