FS Merch Exam 4

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FS Merch Exam 4
2012-10-28 22:20:37

FS Merch Exam 4
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  1. Average
    Mean sale
    Sum of a group of a group of sales divided by the number of units sold.
  2. Cash advance
  3. Cash discounts
    Discount offered on the amount of the invoice for prompt payment
  4. quantity discounts
    Discounts on individual units price based on number of units of merchandise purchased
  5. trade discounts
    Discounts allowed to Funeral Director from List or Catalog price
  6. Rebate
    A return of a portion of the payment made.
  7. Consecutive (Stairstep) method
    Placing caskets for selection in their increasing or decreasing value
  8. Consumer Value lndex (CVI)
    The percentage derived by dividing the wholesale cost of the merchandise by the retail price of the merchandise;

    measures value of each dollar spent to purchase a particular product.
  9. Demonstration or educational grouping
    Group of 3 or 4 caskets utilized to educate the selecting party refarding the elements on casket construction usually by the front door used to assist the client in selection
  10. Funeral merchandising
    • the purchase, pricing, display, & sale of Funeral Service merchandise
    • FTC defined as funeral goods
  11. Graduated recovery
    return on money by varying the amount expected on each selection
  12. Markup
    the amount added to cost of article to determine selling price of article
  13. Median
    represents midpoint of a group of numbers; equal amounts above and below
  14. Mode
    value that occurs most frequently in a group of numbers
  15. Merchandising Value Ratio (MVR)
    the relationship between the wholesale cost of the merchandise and the total cost (both service and merchandise) to the consumer
  16. Sales frequency chart
    it charts the number of times sales of cskets in a given price bracket occur over a fixed period of time;

    firm can fine tune its merchandise offerings
  17. Advantages of planned buying
    • 1. keeps you away from the so-called "bargains"
    • 2. eliminates overstocking
    • 3. helps to maintain a balanced line - refers to the practice of displaying a good selection of price ranges, opening styles, interior and exterior materials, and shell designs to meet the needs of the consumer.
  18. Casket display equipment
    1. distance from the floor and the bottom of the casket should be between 26"-30"

    2. casket stand (casket standard) - single rack or support for casket display

    3. Casket rack - double rack to display 2 caskets top and bottom

    4. church truck - collapsable support for a casket used for service, outside, funeral home

    5. bier - a rigid, movement casket support used in state rooms and funeral home chapels
  19. Fixed multiple Method (Straight Line or Times factor)
    Methods for determining markup
    Price determination method whereby cost of merchandise is multiplied by a constant factor
  20. Percentage Method
    Methods for determining markup
    price is multiplied by a certain percentage
  21. Fixed dollar amount
    Methods for determining markup
    Add same dollar amount to the wholesale price
  22. Graduated recovery
    Methods for determining markup
    return on money by varying the amount expected on each selection
  23. Increasing graduated recovery
    Methods for determining markup
    entry level merchandise receiving a relatively low markup;

    high end merchandise receives a higher markup;

    Rewards consumer who chooses to spend the least.

    Funeral Director receives lowest amount of profit.
  24. Decreasing graduated recovery
    Methods for determining markup
    upper range caskets receive markups that are comparatively less than those applied to entry level casket;

    consumer receives more value for thier money and encouraged to buy up.
  25. Modified graduated recovery
    Methods for determining markup
    entry level casket has mark up slightly less than high end;

    entry level should remain in a range of affordability for most consumers.

    encouraged to buy better quality merchandise to receive more value for thier money.
  26. Consumerized Pricing Method
    Methods for determining markup
    pricing to cost is more familiar to customer
  27. Minimum and maximum number of caskets recommended for display
    • minimum is 12
    • maximum is 30
  28. Names of quartiles
    a division of the total into four segments, each one representing one-fourth of the total

    1st quartile - utility quartile; 10% of the units displayed (lowest priced caskets)

    2nd and 3rd quartiles - 27% and 40% of caskets displayed. Also called the range because it is the area provideing the greatest selling opportunities

    4th quartile - 23 % of the units; known as the personal satisfaction quartile (highest priced caskets)
  29. Number of square feet to display a casket
    40 to 60 sq ft per casket is recommended
  30. Direct and Indirect selection room procedures
    • Direct selection room procedures
    •      Funeral Director in room the entire time family is in there.

    • Indirect selection room procedures
    •      Funeral Director does not stay in the selection room
    •             during the selection process
  31. Post selection room procedures
    • a. Verifications of selections
    •      1. Confirms judgement and presents misunderstanding
    •      2. Psycologically assures the family that they made the
    •               right decision

    b. required federal and state disclosures

    • c. Compute total expenses and complete the Statement of
    •           Funeral Goods and Services selected.

    • d. Verify method of payment
    •       1. Cash
    •       2. Credit
    •       3. Credit card
    •       4. Insurance assignments
    •       5. Pre-funded funeral proceeds
  32. Preferred location for casket selection room
    Main level - recommendation

    Upper level - 2nd best location

    Lower level - worst location
  33. Pre-selection roorn counseling
    • a. required federal and state disclosures
    • b. timely presentation of price lists
    • c. quantity of merchandise on display
    • d. price range
    • e. types of merchandise on display
    • f. other factors influencing total funeral costs
    • g. merchandising aids (miniature vault display)
  34. Seven general criteria for the price of a funeral
    • 1. overhead
    • 2. cost of merchandise
    • 3. markup on merchandise
    • 4. human need
    • 5. competition
    • 6. area pricing
    • 7. business ethics
  35. Itemization
    Types and advantages and disadvantages of Price Quotation
    the method of price quotation by which each unit of service and/or merchandise is priced separately.

    Advantages - a thorough understanding of what is included in the funeral clearer to the family and gross profit of the funeral home is increased due to the placement of a profit on each item.

    Disadvantages - family may omit certain items thereby causing loss of overhead recovery for the mortician; for those families that omit nothing, the result is increased costs of the complete funeral because a profit is placed on each and every item; problem with determinig by what percent of profit is to be placed on each item.
  36. Bi-unit pricing
    Types and advantages and disadvantages of Price Quotation
    Places one price on casket, one price one service.

    Advantages - Allows for a comparison of the prices of caskets, places a realistic value on the casket, facilitates a comparison between caskets, and establishes a fee for services.
  37. Functional pricing
    Types and advantages and disadvantages of Price Quotation
    method that places price on usually 4 items casket, service, facilities, and transportation

    Advantages - all th advantages of Bi-unit pricing
  38. Package pricing
    Types and advantages and disadvantages of Price Quotation
    groups together merchandise in package
  39. Unit pricing
    Types and advantages and disadvantages of Price Quotation
    simplest, one price is placed for both casket and services

    Advantages - Single billing and accounting thus eliminating a division of services and merchandise.

    Disadvantages - exaggerates the value of the casket and fails to emphasize the value of services.
  40. Types of lighting
    Most people prefer lighted areas. A foot candle is the amount of illumination produced by the source of one candle at a distance of one foot. (90-100 foot candles of lighting needed)

    1. Direct lighting - Illumination that directly shines on an object.

    2. Indirect lighting - Reflected illumination of an object

    • 3. Fluorescent - Tubular electric discharge lamp.
    •      Provides most light, more harsh.

    • 4. Incandescent - Illumination resulting from the flowing of a heated filament.
    •      Softer than flourescent.

    5. Halogen lighting - High intensity light source - clean bright white light trying to approximate natural day light

    6. LED lighting

    7. Green lighting options