Chapter 3 - Tips

What You Will Learn

"Great locations, great looking stores & great sales staff aren't worth much if the merchandise isn't right."

Assortment Plan

The higher the perceived quality of merchandise carried, the lower the "depth" of each style/product required.

Having price points on either side of a mid-range price can enhance this middle price as the "volume" price point.

Vendor Analysis

Suppliers will sometimes ticket merchandise for you and hold it in their warehouse until required.

Vendor Negotiations

Suppliers treat customers that pay on time far better than ones who have to be reminded of their past due amounts.

Suppliers always have extra co-op advertising $ available for professional, targeted promotional ideas.

You need not be a large chain to have a private label program. There are manufacturers that will do small runs on special products.

The Open-to-Buy System

"Open-to-sort" can be another line on your OTB that allocates $ for fill-ins and opportunity buys.

If you cannot fit in a great opportunity buy that is offered to you, try for extended "dating" so cash flow is not affected.

Fact Computerized retailers have a far better chance of forecasting & attaining higher year-end margins than stores operated on manual systems.

Merchandise Movement Decisions

In many cases, it is more cost-effective to mark down an item than transfer it to another store.

You will have fewer problems getting credit on returned merchandise if you attach a "return tag" to each product outlining the problem, customer name, etc.

Cenrtal Warehousing: Disadvantages

"You can't sell it in the warehouse."