TIP OF THE WEEK
Buyers shop the market for the best price available on their merchandise. Whether they are buying from well-established designer lines like Calvin Klein, or buying directly from manufacturers and placing their own label on the products, the cost is crucial to their bottom line. Determining whether a cost is favorable involves a thorough investigation of the products needed and the perceived value of the products, among other things.
Perceived value is the most important factor when determining the cost and retail of a product.
Unless an in-depth analysis of the competition and target market is conducted, the retailer does not know the perceived value of the product. Retailers often underestimate a product at the start of a season if it is new to the market. If sales are much higher than planned, they soon realize they have "undersold" the product. Changing the retail price of the product at this point is risky. Increasing the ticket retail is a sure way to irritate the loyal consumer who regularly shops in your stores.
Conversely, retailers often overprice the product at the start of the season. If competing retailers have the same product at much lower prices, the retailer will lose a substantial amount of business. This is important, because it is far more expensive to generate new customers than to retain existing customers. Once the buyer realizes that the product is overpriced, it may be too late to adjust pricing, and the selling window maybe be nearly closed.
As you can see, setting the retail price too high or too low can negatively affect sales. That is why a thorough analysis is needed to determine both the desired cost and acceptable retail of all products in a retailer's assortment.
How Do Buyers Determine Price?
Buyers decide what cost and retail to place on merchandise by:
1. Looking at past selling history (LY)
2. Reassessing the target market
3. Creating a desirable assortment plan
4. Developing and adhering to a gross margin plan
5. Shopping a wide variety of resources
6. Determining whether the product should be purchased from a well-known designer or developed as a private label
7. Estimating the number of markdowns that will be taken in order to sell thru the product
8. Continually assessing the consumers' perceived value of the product
9. Continuing to scour the market for the best prices and quality
10. Reviewing selling information as soon as new products arrive on the selling floor, and then taking appropriate action
Fundamentals of Retail Buying:
With Merchandising Math
Angella L. Hoffman
Pearson Education Inc.
UCA Press Announcement
Innovation and Entrepreneurship Major
The UCA College of Business is pleased to announce the official launch of the Innovation and Entrepreneurship (I&E) Major.
Why do we offer this major? Creativity is the ultimate business weapon. It is a country's and company's growth engine. It is the most valuable and marketable business skill today. The major in Innovation and Entrepreneurship teaches students how to develop ideas and how to get them done. We create "dreamers" and "doers." Students will identify opportunities and then develop and launch innovations, whether these are products, services, or processes.
What can I&E majors do? Start ventures or make an impact at an existing business of any size or at any stage. Our students are change and innovation specialists who creatively solve problems.
What are key features of the I&E major?
. Comprehensive business experience: from idea to implementation
. Classes held in the "Imagine Lab," a cutting edge space built for collaboration
. Hands-on and highly experiential
. Closely mentored
. Graduate with a portfolio of original ideas - not just a degree
. Equipped to start a business
. Will be highly marketable to corporations
. Expert in the ultimate value-creating skill of the 21st Century: creativity
If you would like more information about the Innovation and Entrepreneurship major at the University of Central Arkansas please contact Dr. Dan Fisher (DJFisher@uca.edu); Dr. Michael Hargis (MHargis@uca.edu), or Dr. Don Bradley (DonB@uca.edu).
EPIC Residential College Program
The EPIC program (www.uca.edu/epic) at UCA enriches the student living and learning experience at the University. It is designed to be one of the most unique and transformative residential learning communities in the nation. Students from various disciplines including science and technology, business, and the fine arts will collaboratively live, work, and tackle real-world challenges that will have both commercial and community impact.
For instance, in the 2012/2013 academic year, students in the EPIC program will work in teams to develop an "App" to solve business problems, community issues, and/or for personal use. Students will participate in a community-enhancement project, which will get them engaged in local communities in Arkansas. Students will also compete in teams to find ways to improve UCA. In addition, students will have an opportunity to learn from guest speakers, who will emphasize entrepreneurship and community engagement.
The EPIC programs provide students with the tools to engage entities outside of the University like they never have before. Students who participate in EPIC will partake in learning and problem solving while tackling real world challenges that exist in the community. If you would like more information on the EPIC Residential College, please contact Dr. Tom Snyder (EPIC Resident Master, TJSnyder@uca.edu) or Dr. Michael Hargis (EPIC Rector, MHargis@uca.edu).
Social Science Research Network
Entrepreneurship Research & Policy Network - New Journal Announcement (Technology Entrepreneurship), Professional Announcements and Job Openings,click here.
American Journal of Entrepreneurship (formally Southern Journal of Entrepreneurship) A Call for Papers on Entrepreneurship Education
Special Issues - The purpose of the Special Issue is to conduct a review of entrepreneurship education internationally. The SI will, therefore, focus on papers that will review, explain and outline the current status of policy and practice in a particular region in the world as it relates to entrepreneurship education. While empirical papers are welcome the focus of this SI are review papers that explore the latest status of policy and practice. Papers should seek to explore practice across a particular region rather than focus on one course or program. All papers will be peer-reviewed,click here.
USASBE will be hosting their 2013 Conference during January 10-13, 2013 in San Francisco, CA. USASBE will accept Pre-Conference Workshop Proposals through July 10th. Email proposals to USASBE2013@gmail.com. For more information, click here.
Allied Academy will be hosting 2 upcoming conferences soon. The Summer International Internet Conference will be held during July 24-31, 2012. And the Fall International Conference will be held during October 10-12, 2012 in Las Vegas. For more information,click here.
New SBI Website
We are excited to inform you the new SBI website is Live and Ready!
Now that the website is up and running, there are a couple of housekeeping items that need to be addressed. Please read below:
Password: One of the key features of the new website is that it allows members to set up a personal password..Don't worry if you forget it you can also reset it. Please click the following link to reset your password: http://smallbusinessinstitute.biz/Sys/ForgottenPasswordRequest.
Profile: Another one of the key features is that you will now have access to update your profile information at any time. Please review your profile and make changes as needed.
E-mail: Due to the change of website providers the @smallbusinessinstitute.biz emails are no longer active. If you need to reach the board members or administrative staff you can find contact information on the CONTACT US tab or click here.
As Mike Harris stated in his announcement earlier this week, we want to do a better job of promoting the success of our members. Please send us your recent accomplishments, articles or good news, so we can share it with all SBI members.
We invite you to visit the new and improved website http://smallbusinessinstitute.biz/, tell us what you think!
The Small Business Institute® Journal has just published its latest issue at www.sbij.org. We invite you to review the Table of Contents here and then visit our web site to review articles and items of interest.
International Journal of Business and Social Science
The International Journal of Business and Social Science is now taking manuscript submissions. All manuscripts must be submitted electronically through the e-mail to the editor at email@example.com, or firstname.lastname@example.org. For more information,click here.