
UNIT ONE Facts and Fundamentals About the Tools of the Trade 


1  (52) 

A Look at Who, Why, What, and How! 


3  (8) 

Who Really Needs Merchandising Math Skills? Everyone! 


3  (1) 


3  (1) 


4  (1) 


5  (3) 


8  (3) 

Getting Comfortable with Numbers 


11  (26) 


11  (1) 


12  (6) 


12  (2) 


14  (2) 


16  (1) 


17  (1) 


18  (4) 


22  (3) 

Applying Percents to Merchandising Concepts 


25  (8) 

Using Percents to Analyze, Compare, and Set Direction 


33  (4) 


37  (16) 

UNIT TWO Purchasing and Pricing 


53  (102) 


55  (30) 


55  (30) 


55  (1) 

Step 1: Negotiating Price of the Product 


55  (1) 

Step 2: Negotiating Dating and Payment Terms 


56  (1) 

Step 3: Negotiating Shipping Terms 


56  (1) 

Step 1: Negotiating Price of the Product 


56  (3) 


59  (1) 


60  (1) 

Step 2: Negotiating Dating and Payment Terms 


61  (3) 

Step 3: Negotiating Shipping Terms 


64  (7) 


71  (1) 


72  (4) 


76  (2) 


78  (7) 

The First Price: Individual and Initial Markup 


85  (32) 


85  (7) 

Formulas and TChart Grids 


89  (1) 

Finding the Specific Dollar Amounts 


90  (2) 


92  (3) 

Finding Total Dollar Amounts 


95  (22) 

Finding Total Dollar Amounts 


97  (20) 

Markups to Sell: Average, Cumulative, and Maintained Markup 


117  (22) 


118  (5) 


123  (3) 


126  (13) 


139  (16) 


140  (1) 


141  (1) 

Promotional Discount Markdown Reductions 


142  (1) 


143  (6) 


149  (6) 

UNIT THREE The Planning Process 


155  (70) 

Fundamentals of a SixMonth Merchandising Plan 


157  (10) 

Purpose of a SixMonth Plan 


157  (1) 

A Note about Gross Margin 


158  (4) 

Elements of a SixMonth Plan 


162  (5) 

Analyzing Last Year's SixMonth Merchandising Plan 


167  (18) 


167  (1) 


168  (1) 

Step 3: Evaluate Markdowns 


168  (1) 

Step 4: Evaluate Purchases at Retail 


169  (1) 

Step 5: Evaluate Purchases at Cost 


169  (1) 

Step 6: Measure Average Stock and Turnover 


169  (1) 


170  (15) 

Analysis and Interpretation 


172  (13) 

Changing a SixMonth Plan Using Historical Data 


185  (20) 

Step 1: Analyze the Given Information 


185  (1) 


186  (1) 

Step 3: Figure Out the Stock Data 


186  (1) 

Step 4: Calculate Markdowns 


186  (1) 

Step 5: Determine Planned Purchases 


187  (1) 

Step 6: Measure Average Stock and Turnover 


187  (1) 

Changing a SixMonth Plan 


188  (17) 

Step 1: Analyze the Given Information 


188  (1) 


189  (1) 

Step 3: Figure Out the Stock Data 


189  (1) 

Step 4: Calculate Markdowns 


189  (2) 

Step 5: Determine Planned Purchases 


191  (1) 

Step 6: Measure Average Stock and Turnover 


191  (14) 

Developing New SixMonth Merchandising Plans 


205  (20) 

Step 1: Analyze the Given Information 


205  (1) 


206  (1) 

Step 3: Figure Out the Stock Data 


206  (1) 

Step 4: Calculate Markdowns 


207  (1) 

Step 5: Plan Monthly Purchases 


208  (1) 

Developing a SixMonth Plan 


208  (17) 

Step 1: Analyze the Given Information 


208  (1) 


209  (1) 

Step 3: Figure out the Stock Data 


209  (1) 

Step 4: Calculate Markdowns 


210  (1) 

Step 5: Plan Monthly Purchases at Retail and Cost 


211  (14) 

UNIT FOUR Balance Brings Profits 


225  (50) 

Controlling the Flow: Calculating Open to Buy 


227  (8) 


227  (1) 


228  (7) 

Building Balance: Classification Planning 


235  (16) 

First Steps in Building a Model Stock Through Classification Planning 


237  (1) 

Next Steps for Building a Model Stock Through Classification Planning 


237  (1) 

Elements of a Typical Classification Plan 


237  (1) 


238  (13) 

Designing Today: Cost Sheets and Pricing 


251  (24) 


253  (2) 


255  (5) 


260  (3) 


261  (2) 

Costing and Pricing: Wholesale versus Private Label 


263  (12) 

UNIT FIVE Measuring the Results 


275  (32) 

Make the Most Out of Your Space: Sales Per Square Foot 


277  (8) 


277  (8) 

The P&L Is the One That Counts: Operating Statements 


285  (22) 

Purpose of an Operating Statement 


285  (3) 

Format of Operating Statements 


288  (5) 


293  (12) 


305  (2) 

APPENDIX 1 How to Use Your Calculator 


307  (4) 


307  (1) 

Common Operating Keys for a Basic Calculator 


308  (1) 


308  (1) 


308  (1) 


308  (3) 

APPENDIX 2 Basic Business Formulas 


311  (2) 


311  (1) 


311  (1) 

Analyzing and Evaluating SixMonth Merchandising Plans 


312  (1) 

Developing a SixMonth Merchandising Plan 


312  (1) 


312  (1) 

Cost of Goods to be Sold (CGS) 


312  (1) 

APPENDIX 3 Answers to OddNumbered Problems 


313  (36) 
Index 

349  