In this chapter, you will learn about: The different types of buying groups; the functions, services, & programs typical of these buying groups; the role of centralized buying in group purchases; the detailed activities involved in the buying-selling cycle.
Ch. 2: The Roles of Buying Groups • The different types of buying groups • The functions, services, & programs typical of these buying groups • The role of centralized buying in group purchases • The detailed activities involved in the buying selling cycle Copyright © 2006 by John Wiley & Sons, Inc All rights rese What Buying Offices Do • Information exchange, research assistance • Product (privatelabel brand) development • Importprogramsand/orinternational purchasingfunctions Promotionservices(advertisingschedules, displayadvice,catalogproduction,etc.) Anoverallconsultingfirmwithretailstores asitsclientbase Copyright â 2006 by John Wiley & Sons, Inc All rights rese Types of Buying Offices • Independent Works for individual stores or small chains May have a specialty or niche market • Corporate Represents one large store chain (“syndicated”) or a single large store (“private”) • Associated (Cooperative) Owned jointly by a “coop” of multiple retailers, who share its costs and use it for centralized buying Copyright © 2006 by John Wiley & Sons, Inc All rights rese The Buying & Selling Cycle BUYING • Deciding specifically what & how much to buy • Deciding when to buy & when to bring items into stock • Deciding details: where to get it, how much to pay for it, how to pay, how to ship it • Actually performing the above tasks and/or delegating them to others • Training assistants in these activities Copyright © 2006 by John Wiley & Sons, Inc All rights rese The Buying & Selling Cycle – Stock keeping • Handling the goods from their arrival at store to the time they are sold • Receiving functions: Checking incoming orders for accuracy, quality • Marking, ticketing with price and SKU information • Storing goods until moved to sale location • Moving and distributing goods • Notifying stores of incoming shipments • Checking & authorizing invoices for payment • Authorizing returns, if necessary, to vendors Copyright © 2006 by John Wiley & Sons, Inc All rights rese Stock keeping (continued) • Protecting goods from theft or damage • Cleaning, repairing items as necessary • Inventory control: Decisions about how to group items, both in storage and on display • Determining (and monitoring) staple stock levels • Reclassifying items that sell more quickly (or more slowly) than planned Copyright © 2006 by John Wiley & Sons, Inc All rights rese The Buying & Selling Cycle Pricing • • • • Setting markup and margin goals Setting price lines and ranges or “zones” Pricing individual items Repricing as necessary Copyright © 2006 by John Wiley & Sons, Inc All rights rese The Buying & Selling Cycle Selling • • • • Management of sales force and workload Decisions about what to promote & when Informing & motivating sales teams Working with advertising & display teams; some input into advertising types & space • Planning or requesting signage & display contents; negotiating allowances for these • Deciding where to place fixtures, items on those fixtures, & displays of certain products Copyright © 2006 by John Wiley & Sons, Inc All rights rese The Buying & Selling Cycle Planning & Control • Providing input into all store policies: image, services, target customers, sales margins, etc • Analyzing & forecasting consumer demands • Budgeting & building model stocks • Tracking all goals, plans, policies & budgets against actual sales data Copyright © 2006 by John Wiley & Sons, Inc All rights rese ... Actually performing the above tasks and/or delegating them to others • Training assistants in these activities Copyright © 2006 by John Wiley & Sons, Inc All rights rese The Buying & Selling Cycle – Stock keeping... Owned jointly by a “coop” of multiple retailers, who share its costs and use it for centralized buying Copyright © 2006 by John Wiley & Sons, Inc All rights rese The Buying & Selling Cycle BUYING. .. displayadvice,catalogproduction,etc.) Anoverallconsultingfirmwithretailstores asitsclientbase Copyright â 2006 by John Wiley & Sons, Inc All rights rese Types of Buying Offices • Independent Works for individual stores or small chains