PURCHASES AND PRICE MERCHANDISE

Modul 4 Quiz

Vendors are typically categorized as

(1) manufacturers

(2) wholesalers

(3) Manufacturers’ representatives/brokers

Criteria for selecting vendors

(1) merchandise and prices offered,

(2) vendors' distribution policies,

(3) vendors' reputation and reliability,

(4) terms offered, and

(5) services provided

Reasons to consider new vendors

declining quality,

rising prices,

a shift in target customers, or

better alternatives entering the market

Buyers can evaluate vendors..

• using vendor profiles or diaries,

• recording quantitative data (purchases, returns, markups, discounts,

shipping costs),

• record qualitative factors (customer opinions, delivery reliability, product

quality, complaint handling, and services provided)

Types of markets

• central markets,

• merchandise/apparel marts, and

• expositions/trade shows.

Steps in planning market trips

1. prepare a merchandise buying plan

2. obtain approval for buying plan

3. notify buying office

4. determine the duration of trip; make hotel and travel arrangements

5. Establish a work schedule for staff members

Negotiation

a process of bargaining to reach an agreement that satisfies both the buyer and the vendor

Buying offices support retailers by

providing advisory services,

organizing travel, and

previewing merchandise before market visits

vendor owned stores key benefits

1. the ability to display the entire line,

2. the ability to create an environment for the line according to the designer's concept

3. the ability to obtain feedback from customers on the entire line, not just pieces of the line.

Exclusive vs Selective distribution policies

Exclusive distribution - limits a product to one retailer in an area, giving the product a unique image and allowing the vendor to control merchandising and promotion.

Selective distribution - sells to a few chosen retailers, often with restrictions based on potential sales.