LPQ Vocabulary|2023 LATEST UPDATE|GUARANTEED SUCCESS

Add-On Sales Items Additional merchandise that has been "added on" to the original sales item, for example convincing the customer to buy a tie with a shirt. Brick and Mortar This term refers to retail shops that are located in a building as opposed to an online shopping destination, door-to-door sales, kiosk or other similar site not housed within a structure. 00:16 01:18 Business Plan A detailed document describing the present and future financial and operational objectives of a company. It is the formal statement of goals and how we intend to reach those goals. Cash Discount A percentage reduction in price for payment within a specified period of time. Cash Flow The movement of money in and out of a business and the resulting availability of cash. It is the amount of cash being received and spent by a retailer over a defined period of time. It can be used to define the performance of the business, or the potential income or growth of a business. Chain Store One of a number of retail stores under the same ownership and dealing in the same merchandise. Comp Store Sales Comparable sales numbers that can be judged against last year's sales numbers, assuming the store has been open longer than a year and there is historical information to compare this year's sales with last year's sales Cost of Goods Sold This is the price paid for a particular product, plus any additional costs necessary to get the merchandise into inventory and ready for sale, including shipping and handling. Coupon A promotional tool in the form of a document. FOB Shipping term used to indicate who is responsible for paying transportation charges. Gross Margin Return On Investment A measure of inventory productivity that expresses the relationship between your total sales, the gross profit margin you earn on those sales, and the number of dollars you invest in inventory. Gross Margin The difference between what an item costs our company and what price it is sold to the customer. 00:01 01:18 Gross Sales Total gross sales for the year, including both taxable and nontaxable transactions. Hang Tag A manufacturer's label describing the merchandise, or a hanging price tag used on merchandise Hardlines A store department or product line primarily consisting of merchandise such as hardware, housewares, automotive, electronics, sporting goods, health and beauty aids or toys. Inventory Turnover The number of times during a given period that the average inventory on hand is sold and replaced. Layaway The act of taking a deposit on store merchandise for a customer to purchase at a later date. Margin The amount of gross profit made when an item is sold. Markdown Planned reduction in the selling price of an item, usually to take effect either within a certain number of days after seasonal merchandise is received or at a specific date. Markup Designates how much the price of the product is raised above the production and distributing costs to establish the actual retail selling price of an item. Open-to-Buy Merchandise budgeted for purchase during a certain time period that has not yet been ordered. Operating Expenses The sum of all expenses associated with the normal course of running a business that have not been directly applied to the price of the merchandise being sold. Planogram A schematic drawing of a floor plan including fixtures that illustrate product placement. Point of Sale (POS) This term refers to the area of a store where customers can pay for their purchases. The term is normally used to describe systems that record financial transactions. This could be an electric cash register or an integrated computer system which records the data that comprises a business transaction for the sale of goods or services. Private Label Products which are generally manufactured or provided by one company under another company's brand. Profit Margin A ratio of profitability calculated as earnings divided by revenues. It measures how much out of every dollar of sales a retail business actually keeps in earnings. Purchase Order (PO) A written sales contract between buyer and seller detailing the exact merchandise or services to be rendered from a single vendor. Retail Merchandise Management System (RMM) A system that will track the performance of specific merchandise, helping us to reorder strong selling merchandise and identifying poor selling product allowing our buying department to make strong merchandise decisions more quickly and efficiently. Sales Floor The location of a retail store where goods are displayed and sales transactions take place. Shrinkage/ Shortage A loss in inventory due to shoplifting, employee theft, paperwork errors, vendor fraud and other related losses.