1. Ch. 6: Buying and Displaying Merchandise Determining the right merchandise for your store Locating sources for the merchandise Attending markets and trade shows Working with importers, sales reps and buying offices Ordering the merchandise Pricing the merchandise Using themes and props to create displays Borrowing display ideas from the pros

2. Sources of Merchandise Buying direct from manufacturers Direct salesperson Manufacturer’s rep Sub-rep “Repping” firm Wholesale distributor Importer Jobber Buying group Buying service or buying office Consignment agreement

3. Buying Strategies Never buy without a plan and a budget! Use the first day of a market or trade show to look around before making decisions Go in with knowledge of the marketplace, customers and competitors’ prices Don’t act like a “big shot,” even when you’re making a big buy Don’t act too humble, either..! Ask for deals and add-on services

4. Deals Worth Asking For at Market Off-price merchandise Promotional goods Invoice dating Better shipping terms Trunk shows, demo days Advertising money Photos of merchandise Can you think of others?

5. When Pricing Merchandise, Consider… The competition in your market The perceived value of the item or line The value inherent in the brand The merchandise category The type of store The overall look of the merchandise What employees think of the merchandise The true market value of the item or line

6. The “Open to Thrive” System The 40-55-5 Rule A maximum 40% of money made on sales will go toward expenses associated with the sales. 55% of money made on sales will go toward buying new merchandise. 5% of money made on sales is positive cash flow (in reality, a type of profit)