Math for Merchandising A Step-by-Step Approach

by Moore, Evelyn C.

• ISBN13: 9780131107342
• ISBN10: 0131107348
• Edition: 3rd
• Format: Paperback
• Copyright: 2019-07-01
• Publisher: Pearson

Summary

This book takes users step by step through the concepts of merchandising math. It is organized so that the chapters parallel a career path in the merchandising industry.The book begins with coverage of fundamental math concepts used in merchandising and progresses through the forms and math skills needed to buy, price, and re-price merchandise. Next readers learn the basics of creating and analyzing six-month plans. The final section of the book introduces math and merchandising concepts that are typically used at the corporate level.For individuals pursuing a career in merchandising.

Table of Contents

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)
That's Right: Why?	3	(1)
What You Need to Know	4	(1)
How You Will Learn	5	(3)
So, Where Do You Start?	8	(3)
Getting Comfortable with Numbers	11	(26)
Using Percents	11	(1)
Basic Math Skills	12	(6)
Fractions and Decimals	12	(2)
Dozens	14	(2)
Rounding	16	(1)
Working with Percents	17	(1)
Helpful Hints	18	(4)
Summary	22	(3)
Applying Percents to Merchandising Concepts	25	(8)
Using Percents to Analyze, Compare, and Set Direction	33	(4)
Tracking Key Concepts	37	(16)
UNIT TWO Purchasing and Pricing	53	(102)
Buying for Profits	55	(30)
Negotiating	55	(30)
Terms and Conditions	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)
List Price	59	(1)
Series Discounts	60	(1)
Step 2: Negotiating Dating and Payment Terms	61	(3)
Step 3: Negotiating Shipping Terms	64	(7)
Forms	71	(1)
Purchase Orders	72	(4)
Invoices	76	(2)
Return-to-Vendor Forms	78	(7)
The First Price: Individual and Initial Markup	85	(32)
Principles of Markup	85	(7)
Formulas and T-Chart Grids	89	(1)
Finding the Specific Dollar Amounts	90	(2)
Finding Percents	92	(3)
Finding Total Dollar Amounts	95	(22)
Finding Total Dollar Amounts	97	(20)
Markups to Sell: Average, Cumulative, and Maintained Markup	117	(22)
Average Markup	118	(5)
Cumulative Markup	123	(3)
Maintained Markup	126	(13)
Markdowns Make It Move	139	(16)
When and How?	140	(1)
Traditional Markdown	141	(1)
Promotional Discount Markdown Reductions	142	(1)
Other Discounts	143	(6)
Merchandise Planning	149	(6)
UNIT THREE The Planning Process	155	(70)
Fundamentals of a Six-Month Merchandising Plan	157	(10)
Purpose of a Six-Month Plan	157	(1)
A Note about Gross Margin	158	(4)
Elements of a Six-Month Plan	162	(5)
Analyzing Last Year's Six-Month Merchandising Plan	167	(18)
Step 1: Analyze Sales	167	(1)
Step 2: Evaluate Stock	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)
Using a Six-Month Plan	170	(15)
Analysis and Interpretation	172	(13)
Changing a Six-Month Plan Using Historical Data	185	(20)
Step 1: Analyze the Given Information	185	(1)
Step 2: Determine Sales	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 Six-Month Plan	188	(17)
Step 1: Analyze the Given Information	188	(1)
Step 2: Determine Sales	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 Six-Month Merchandising Plans	205	(20)
Step 1: Analyze the Given Information	205	(1)
Step 2: Determine Sales	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 Six-Month Plan	208	(17)
Step 1: Analyze the Given Information	208	(1)
Step 2: Determine Sales	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)
Open to Buy	227	(1)
Determining Open to Buy	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)
A Specific Example	238	(13)
Designing Today: Cost Sheets and Pricing	251	(24)
Fashion Trends	253	(2)
Cost Sheets	255	(5)
Calculating Markup	260	(3)
Store Markup	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)
Sales Per Square Foot	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)
Determining Net Cost	293	(12)
Workbook Aids	305	(2)
APPENDIX 1 How to Use Your Calculator	307	(4)
Using Your Calculator	307	(1)
Common Operating Keys for a Basic Calculator	308	(1)
Basic Keys	308	(1)
Decimal Point	308	(1)
Percent Key	308	(3)
APPENDIX 2 Basic Business Formulas	311	(2)
Helpful Hints	311	(1)
Basic Markup Formulas	311	(1)
Analyzing and Evaluating Six-Month Merchandising Plans	312	(1)
Developing a Six-Month Merchandising Plan	312	(1)
Profitability	312	(1)
Cost of Goods to be Sold (CGS)	312	(1)
APPENDIX 3 Answers to Odd-Numbered Problems	313	(36)
Index	349