Principles of Buying for ResaleMGT 248
Prerequisite: ENG 111 (or OAT 151) and MGT 110 each with a minimum grade of "C". MGT 247 is recommended. Explores the buying function in retailing and wholesaling in depth. Covers the principles of foreign and domestic vendor location and the legality and ethics in the buyer-vendor relationship. Studies the factors determining merchandise selection, including consumer analysis, building model stocks, and estimating sales potential. Studies merchandising expense control factors, manual and computer inventory control systems, as they relate to buying. (45-0)
Outcomes and Objectives
Demonstrate an understanding of the basic concepts of buying.
- Explain how and why buying decisions are made.
- Describe the breadth of the buyer's role in a retail organization.
Demonstrate an understanding of the current market trends.
- Identify market dates for the coming year.
- Describe trade shows and trade show locations.
- Discuss the characteristics of the children-wear industry.
- Discuss the characteristics of the women and mens wear industry.
- Discuss the lead time on both domestic and foreign goods
Demonstrate an understanding of the buying plan.
- Define planned sales
- Define beginning-of-the-month (BOM) stock
- Define planned markdowns
- Define planned purchases
- Discuss the formats for a six month merchandise plan
Demonstrate an understanding of how to develop stock plans.
- Identify classifications
- Discuss assortment plans
- Describe monthly sales by classification
- Discuss price lines
Demonstrate an understanding of how to plan market purchases.
- Define divisional merchandise manager (DMM)
- Define general merchandise manager (GMM)
- Discuss resources
- Describe a resident buying office
Demonstrate an understanding of how to work with and negotiate with vendors.
- Discuss building relationships with vendors.
- Discuss negotiation techniques with vendors
- Describe steps in visiting vendors
- Discuss purchase order writing
Demonstrate an understanding of the basic math concepts required of a buyer.
- Applying buying formulas and mathematical examples in a realistic format.
- Discuss information typically required for the completion of an order form.
- Describe terms of the sale
- Discuss the buying calendar and merchandise flow.
- Explain and apply open-to-buy concepts.
Demonstrate an understanding of planning the sales promotion for the buyer.
- Discuss the sales promotion budget
- Define vendor co-op
- Describe the advertising calendar
- Discuss the monthly promotional plan
Demonstrate an understanding of the financial health of a company.
- Define gross margin
- Define sales volume
- Define cost of goods sold
- Define operating expenses
- Define fixed expenses
- Describe an income statement
- Discuss profit and loss