Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
PGM Final
Merchandising/Golf Shop Ops
| Term | Definition |
|---|---|
| The budgeting process | 1. forecasting sales 2. forecasting COGS 3. projecting turnover 4. establishing BOMI levels 5. calculate open to buy budgets |
| Benchmarking | process of comparing one's business processes and performance metrics to industry bests or best practices from other industries |
| Merchandise Assortment Plan (MAP) | establishes the desired merchandise mix in the golf shop and lists the specific brands, sizes, colors, materials, models, styles, and price points of the products that the facility will sell |
| Perpetual book inventory | tracks real time receipt and sale of merchandise |
| Physical inventory | conducted on regularly schedules basis to identify problems and enable merchandisers to respond to them in a timely fashion |
| Turnover Rates | - how many times the inventory is being sold and replaced within a specific period of time - higher turn rate = higher return on investment = better profitability |
| Turnover Rates Formula | total COGS/average inventory at cost |
| Pricing Policies | 1. bundling 2. tournament sales 3. new promotional pricing 4. markdown 5. clearance & liquidations |
| Markup | difference between wholesale price paid for product and product's retail price |
| Markup vs. Gross Margin | Gross Margin is the difference between final sales price and COGS |
| Open to Buy plan (OTB) | amount of dollars to be spent to purchase or replace inventory in a particular merchandising category in order to meet the set sales goals |
| OTB Plan duration | Typically covers one year, broken down into months |
| Advantage of OTB Plan | Avoids over or under investing in a product line |
| Goods available for sale formula | Beginning of Month Inventory + Purchases |
| Gross margin definition | Difference between the total sales and the COGS and shows the amount of money available to cover the facility's operating expenses and make a profit |
| Gross Margin Formula | Total sales - COGS _________ GM $ |
| Purchase Order Definition | key inventory control tool that helps identify what merchandise is on order, the date it was ordered, who ordered it, when it is due to the store |
| Why do we need purchase orders | defines the purchase terms and gives the vendor's authorization to ship the merchandise |
| 80/20 principle | Eighty percent of merchandise is bought by 20 percent of your customers |
Created by:
brianamikel
Popular Business sets