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Merchandising Plan
| Question | Answer |
|---|---|
| Set of policies, considerations, guides, and precautions to enable a funeral service firm to make a profit. | Merchandising plan |
| The elements of the merchandising plan include? | Sales objectives, suppliers, inventory, and market research. |
| What are the sales objectives? There are 4. | Evaluation of the nature of the market, evaluation of sales history at the funeral home, determination of the merchandise to be offered, and determination of the profit margin. |
| Evaluation of the nature of the market includes? | Income, preferences, and purchasing habits. |
| Evaluation of the sales history at the funeral home includes? | Sales frequency |
| What do we look for in suppliers? | Can they provide our product, do they provide high quality, do they provide fair prices for the quantity, are they reliable, do they have warranties, and are there incentives. |
| Savings to a customer if paid by a certain day. | Cash discount |
| Cash discount is represented: 2/10 net 30. T or F | True |
| Amount that is deducted when a certain amount is bought. | Quantity discount |
| Previously purchased merchandise is returned for new stuff. | Trade discount |
| Portion of a payment is returned to the purchaser. | Rebate |
| Merchandise is given to the funeral director to sell and no payment is needed until it sells. | Cosignment |
| Those goods or stock of goods that are held for sale. | Inventory |
| Number of times the average inventory has been sold, in a certain amount of time. | Inventory turnover |
| Estimation of what the expenses are for the coming year. | Budget |
| Complete services that are available, in the tradition sense. | Adult formula sales |
| Anything less than the complete tradition funeral service. | Non formula sales |
| The cost that the funeral home paid for the casket. | Casket wholesale cost |
| The price in which the funeral home offers the casket to the consumer, the selling price. | Casket retail price |
| Number when multiplied by the wholesale cost produces the retail price. | Markup |
| The profit margin. Casket retail minus the wholesale cost. | Gross casket profit |
| Percentage derived from dividing the wholesale cost of the casket by the casket retail price. | Consumer value index |
| As the consumer value index increases, the retail price _________. | Increases |
| Markup is a constant number. There is no increase in the consumer value index. | Fixed/straight line |
| Lower priced casket gets marked up at a lower rate and vice versa. Encouragement to buy lower end caskets. | Graduated recovery |
| Higher priced caskets are given a lower markup. | Declining markup |
| The process by which selections are made available to the consumer at a variety of price levels. | Vertical merchandising |
| The number of units offered at each of the vertical price levels, increasing the number of those caskets in a price that sells the most. | Horizontal merchandising |
| The basics of display include? | Should look pleasing, higher priced should have the best display position, target units should be in the center or on the right, and value difference should be slightly apparent and noticeable. |
| The location of the selection room should be in the actual funeral home, should be fairly large, and should be on the ground floor. T or F | True |
| The size of the selection room should be? | 40-60 sq ft per unit |
| What is the ideal number of units that should be offered? | 20-21 |
| The minimum number of units that should be offered? | 12 |
| The maximum number of units that should be offered? | 30 |
| Lighting in the selection room should be recessed, indirect, and incandescent. T or F | True |
| How many foot candles per unit should exist? | 90-100 foot candles focused at the pillow side |
| Decor in the selection room should include? | Warm tones, family home furniture, and carpet. |
| Bracket that holds two or more caskets. Placed on the wall. | Casket rack |
| A stand or support for a single casket. Meant for display. | Casket standard |
| Wheeled collapsible support, not meant for permanent use. | Church truck |
| The balanced line concept includes? | Quartiles |
| The total dollar amount of sales divided by the number of sales. | Average sales |
| Sales arranged in order of progression by dollars of sale. Should use an odd number. | Median sale |
| The number of sales in a given price bracket given over a period of time. | Sales frequency |
| The first and second quartile are below the median. T or F | True |
| The third and fourth quartiles are above the median. T or F | True |
| The method of displaying caskets based on the median or key quartile. | Balanced line formula |
| The key quartile is which quartile? | 3rd |
| Placing caskets in order of increasing and decreasing value. | Consecutive approach |
| Grouping 2-3 units together at each price level. | Group pricing |
| Grouping of 2-3 caskets utilized to educate the consumer in casket construction and style. | Demonstration/Educational group |
| Group of 3 caskets due to quartile. | Keystone approach |
| Difference in cost between the least expensive and most expensive casket. | Range |
| Center casket is the approach casket, priced $200-300 above the median. To the left of the approach casket there is a unit below the approach casket, and to the right of the approach casket there are 2 units above approach casket. | Indicative approach |
| Aisle to the right is the avenue of approach and to the left it is considered the restrictive aisle. | Wide aisle concept |
| The avenue of approach includes which quartiles? | 3rd and 4th |
| All merchandise is priced separately. | Itemization |
| Price quotation is regulated by who? | The FTC |
| Procedure which creates one total price package for service and merchandise. | Unit pricing |
| Procedure showing separate price of service and price of merchandise. | Bi-unit pricing |
| Charges are broken down into several parts. | Functional/Semi-itemized |
| Funds advanced for your client as a convenience to the client with no provision for profit. | Cash advancements |
| Funeral director works with the family in every step of the arrangements and actively helps make selections. | Direct approach |
| Funeral director works with the family but allows family to make their own selections by not being present in the selection room | Indirect approach |
Created by:
CharliLynn330