Podcast
Questions and Answers
What is the first component of a Profit & Loss statement?
What is the first component of a Profit & Loss statement?
What is research in the buying process based on?
What is research in the buying process based on?
What step comes after research in the buying process?
What step comes after research in the buying process?
What is the purpose of a credit note?
What is the purpose of a credit note?
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What is the main difference between an Independent Office and a Merchandise Brokers Office?
What is the main difference between an Independent Office and a Merchandise Brokers Office?
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What is the 'Division' in a Purchase Order?
What is the 'Division' in a Purchase Order?
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When does the Fall/Winter season begin?
When does the Fall/Winter season begin?
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What is the purpose of the 'Completion' date in a Purchase Order?
What is the purpose of the 'Completion' date in a Purchase Order?
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What is a major factor that affects the scope of a buyer's job?
What is a major factor that affects the scope of a buyer's job?
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Who does a DMM typically report to?
Who does a DMM typically report to?
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What is a key responsibility of a Senior Buyer?
What is a key responsibility of a Senior Buyer?
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What is the primary role of a Planner in a retail organization?
What is the primary role of a Planner in a retail organization?
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What is a characteristic of a successful buyer?
What is a characteristic of a successful buyer?
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What type of products are classified as Soft Lines?
What type of products are classified as Soft Lines?
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What is a benefit of centralized buying?
What is a benefit of centralized buying?
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What is a type of departmentalization?
What is a type of departmentalization?
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Study Notes
Factors Affecting the Scope of the Buyer's Job
- Merchandise carried, organizational structure, and size of the retail organization affect the scope of the buyer's job.
DMM and GMM Roles
- DMM responds to the GMM (Corporate: CEO → CFO → Buyer vs GMM → DMM → Buyer).
Senior Buyer's Job Duties and Responsibilities
- Ensure having the right product at the right price, time, and quantity.
- Analyze last year's sales to forecast this year's sales.
- Conduct market trips to overview the season (4-6 months in advance).
- Analyze reports and fashion trends.
- Negotiate with vendors on MOQ, price, and timing.
- Price merchandise.
Planner's Role
- A planner monitors stock levels by store and tracks key items for sale (common in large companies).
Personality Traits for Buyers
- A buyer should have drive, vision, human relation skills (communication), and merchandise knowledge.
- Know how to create a P/L statement and understand its factors.
Soft and Hard Lines
- Soft lines are apparel and accessories (linens, currents, pillows).
- Hard lines are hardware, sporting goods, appliances, furniture, toys, and lawn and garden products.
Centralized Buying
- All buying activities are performed from central headquarters.
- Benefits include steady flow of merchandise, more accurate sales forecasts, reduced expenses, and more purchasing power.
Types of Centralized Buying
- Centralized Merchandising Plan
- Warehouse Requisition Plan
Departmentalization
- Functional (Controlling, Promotion, Operations, Merchandising)
- Product Line
- Geographic
Profit and Loss Components
- Real volume of Sales (Net Sales - Returns)
- Cost Of Goods
- Gross Margin (difference between COGS and net sales)
- Operating Expenses (excluding COGS)
- Profit & Loss
Research and Planning
- Research is based on last year's sales.
- The process includes research, planning, selection, purchasing, and managing.
Types of Buying Offices
- Independent Office: Salaried/Fixed Fee
- Merchandise Brokers Office: Store Owned buying office
Credit Notes
- A credit note allows brands to apply a dollar value to a future PO if something went wrong in a previous order.
Purchase Order (PO)
- A PO should include order details, division, total units, order date, shipping date, completion date, credit note, division, order type, total units, season, payment terms, and currency.
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Description
Learn about the key aspects of retail buying, including factors affecting the buyer's job, roles of DMM and GMM, and responsibilities of a senior buyer.
