Funeral Service Management Chapter 11

Front 1

Merchandise

Back 1

Goods that are bought and sold

Front 2

Merchandising

Back 2

The purchase, display, and sales of goods

Front 3

Sales objectives

Back 3

A sound merchandising program should start with sound sales objectives

Front 4

Human factor-product knowledge

Back 4

Any merchandising plan is only as good as the director's knowledge of the products being sold and his or her ability to convey this knowledge to the buyer

Front 5

Cash discount

Back 5

Reduction of the price given for a payment of an account within the time limits established by the sales contract

Front 6

Quality discount

Back 6

Reduction in the amount of a bill when a minimum quality of merchandise has been ordered

Front 7

Rebate

Back 7

A return of a portion of a payment

Front 8

Consignment

Back 8

The funeral director does not have to pay for the merchandise that will be displayed until it is sold

Front 9

Inventory

Back 9

Those goods or stocks of goods which are held for resale

Front 10

Inventory turnover

Back 10

The number of times the average inventory has been sold or used up during a period

Front 11

Economic order quantity

Back 11

The quantity to be purchased which minimizes total cost

Front 12

Types of casket selection rooms

Back 12

Fractional display room.

Traditional display room.

Front 13

Fractional display room

Back 13

Features sections of a casket such as 1/4 or 1/8 panels or end sections, on a wall display. May also have a limited number of full caskets displayed.

Front 14

Traditional display room

Back 14

Features a selection of full size caskets

Front 15

Lightning options

Back 15

Fluorescent lightning,

Incandescent lightning,

Direct lightning,

Indirect lightning

Front 16

Fluorescent lightning

Back 16

The illumination produced by a tubular electric discharge lamp

Front 17

Incandescent lightning

Back 17

The illumination resulting from the glowing of a heated filament

Front 18

Direct lightning

Back 18

Illumination directly shining on an object

Front 19

Indirect lightning

Back 19

Reflected illumination of an object

Front 20

Consecutive method

Back 20

Where caskets are arranged in order of increasing or decreasing price

Front 21

Material

Back 21

Woods, steels, coppers, bronze

Front 22

Alternate pricing

Back 22

Each group would have a low, medium, and high cost casket

Front 23

Appearance

Back 23

Casket can be open or closed

Front 24

Direct selection room procedure

Back 24

Presenting caskets whereby the funeral director remains in the selection room throughout the entire selection process

Front 25

Indirect selection room procedure

Back 25

The method of selling caskets whereby the funeral director does not say in the selection room during the selection process, but instead leaves after his introductory presentation

Front 26

Consumer value index (cvi)

Back 26

The percentage derived by dividing the wholesale amount of the merchandise by the retail price of the merchandise

Front 27

Gross casket profit (Margin)

Back 27

Retail price minus wholesale cost equal margin

Front 28

Merchandise value ratio (mvr)

Back 28

The relationship between the wholesale cost of the merchandise and the total cost of both service and merchandise to the consumer

Front 29

Fixed multiple or times factor

Back 29

A price determination method whereby the mark-up is multiplied by a constant factor

Front 30

Graduated recovering

Back 30

A pricing method where the mark up varies

Front 31

Declining price structure

Back 31

A pricing method where there is an inverse relationship between the mark-up and the price of the casket

Front 32

Modified declining price

Back 32

Similar to declining method except the lowest price casket is less expensive

Front 33

Average (Mean)

Back 33

The sum of a group of numbers divided by the number of units

Front 34

Median

Back 34

A value in an ordered set of values which represents the midpoint, whereby there are an equal number of values above and below the midpoint value

Front 35

Mode

Back 35

The number that appears most frequently in a listing of numbers

Front 36

Quartile

Back 36

A division of the total into four intervals, each one representing one-fourth of the total

Front 37

Range

Back 37

The caskets sold in the 2nd and 3rd quartile

Front 38

Balanced line

Back 38

An out of date term used to describe having the correct number of caskets in each pricing quartile

Front 39

Sales frequency

Back 39

The number of times sales in a given price bracket occur over a fixed period of time

Front 40

Sale frequency chart

Back 40

A chart on which all sales are listed showing the number of sales in any sales bracket

Front 41

Federal Trade commission

Back 41

Requires that funeral directors use an itemized pricing system

Front 42

Itemization

Back 42

A method of pricing by which each unit of service and merchandise is priced separately

Front 43

Unit pricing

Back 43

A method of price quotation which creates one total price package for both service and merchandise

Front 44

Bi-unit pricing

Back 44

A method of price quotation showing separately the price of the services and the price of the casket

Front 45

Functional pricing

Back 45

A method of price quotation by which the charges are broken down into several component parts, such as professional service, facilities, automobile, and merchandise

Front 46

Package pricing

Back 46

A method of pricing where certain items of service and merchandise are grouped together and sold at a specific price

Front 47

Mark up

Back 47

Difference between merchandise cost and selling price, I.e, gross margin

Front 48

Mark down

Back 48

Reduction of selling price