Get everything you need to grow your business

Receive tips, tools, and case studies with the Business.com Advisor, our weekly email newsletter

Thanks for subscribing! To ensure you receive your weekly newsletter, please add email@business.com to your safe sender list.

306,241 Subscribers

Top Results for:

Search Results

Merchandising - Wikipedia, the free encyclopedia

In retail commerce, visual display merchandising means merchandise sales using product design, selection, packaging, pricing, and display that stimulates ...

Oracle Retail Merchandise Financial Planning - Overview | Oracle

Oracle Retail Merchandise Financial Planning enables you to identify opportunities for more profitable inventory investment, ensuring that day-to-day decisions ...

Oracle Retail Merchandise Planning and Optimization - Overview ...

OTN · Products and Services Oracle Applications Retail Merchandise Planning & Optimization Overview. Oracle Retail Merchandise Planning and Optimization.

What is Retail Merchandising? (with pictures) - wiseGEEK

Nov 9, 2014 ... Retail merchandising is the process used to conduct retail sales. ... The setup and display of retail merchandise is vital in securing a sale.

Retail Merchandise Management | Retail Anywhere

With our merchandise and retail inventory management solution you can efficiently analyze, order, price, and distribute inventory across your channels. Having ...

Get Your Business Listed

Get your business listed on this page

Reach active buyers and immediately increase your visibility

Get Started
Retail Merchandise Management - IADT

At the International Academy of Design and Technology, students who pursue Retail Merchandise Management degrees can learn the skills needed to sell ...

Retail Merchandise Financial Planning Software

Merchandise Financial Planning is a high-level approach to setting an organization's sales, margin and inventory targets. During this step in the retail planning ...

Retail Merchandise Planning MICROS-Retail

MICROS Retail Merchandise Planning is a decision support tool providing a range of optional customer-focused modules for pre-season budgeting and ...

Retail Merchandising - SlideShare

Oct 3, 2009 ... Retail merchandise management anujtoma 12,865 views .... Merchandise to be sold in retail store, needs to be procured from others – either ...

Merchandise Planning with SAS Integrated Merchandise Planning

Get the most comprehensive retail planning suite from SAS to create accurate merchandise plans that maximizes the impact of every item.

Retail Merchandise Manager: Career & Education Summary

People who searched for Retail Merchandise Manager: Career & Education Summary found the links, articles, and information on this page helpful.

Retail Sales Merchandiser Job Description

As a retail sales merchandiser, you will be ensuring that a proper level of stock is maintained, and that the merchandise is displayed appropriately with proper ...

Retail Merchandise: The Right Business for You?


Owning a retail business has always been a key component of the American dream. Many successful businessmen throughout our nation’s history got their starts in retail merchandise. They may have started with single products or product categories but gradually expanded their operations to include many products or many stores. While the typical mom-and-pop stores of the twentieth century may appear to be fading into history, the opposite is actually true. Modern technology has made it possible for a small-scale entrepreneur to have a presence in the global marketplace. The following guide sheds light on how to navigate your way through the many aspects of owning a retail business.

Benefits

Opening a retail business has never been easier with the connectivity the Internet provides among merchants and other businesses. There are many advantages to going into retail merchandise, such as being able to use personal knowledge and experience to help others, a practically unlimited profit ceiling, a recession-proof business model, and a discount on the goods that you provide.

Business Thrives Without Relying on the Economy

There has never been a better time to get started in retail. According to About.com, most retail stores saw decreases in sales numbers during the first half of 2009 but quickly experienced turnarounds by the second half of 2009. These numbers continued to climb as the sales increase pushed up through 2011. Even the U.S. Census Bureau reported that the U.S. Retail Industry had a second annual shrink in profits in 2009. Despite this quick slump, the industry is thriving again and prime for new establishments.

Personal Knowledge

When you open your own retail business, you have the opportunity to choose whatever business type you want. If you have an incredible knowledge of stereo equipment or an eye for fashion, you can open up either type of retail business while still being fully secure in knowing that your passion for the product will only help in future sales.

Wholesale Discounts

Another advantage to opening a retail business that is part of a niche or industry you like is the ability to purchase products at wholesale prices. If you decide to open a car dealership, you will have the option to buy a new car at the absolute cheapest price possible. This is literally straight from the manufacturer because you have already established the purchasing accounts for your business previously.

 

No Profit Ceiling

Retail businesses and many other types of personally run businesses have the ability to work with an unlimited profit ceiling. When you own your own company, you don’t have to wait for a promotion from a boss or wait for a quarterly raise. Your work directly reflects the amount of money you make from the business. This is the greatest benefit of being part of a free market.

If you have a passion for a certain product or have the ability to produce one that isn’t on the market yet, then a retail business is the perfect solution for you. Whether your end goal is to consistently gain profit or to receive the discounts provided by having a retail company, you are sure to benefit from the process in one way or another.

Pitfalls

When you open a retail business, you probably have a target clientele in mind. Throughout the course of running your business, this target clientele may change slightly or significantly. Because of shifts in consumer buying habits and the changes of your clientele, you have to exercise caution when you buy retail merchandise for your business.

Quality of the Products

The first thing you need to consider when buying any retail merchandise for your store is the quality of the product. You may come across deals on merchandise that fit in with the products your customers like, but if the quality of the products is subpar compared to the ones you normally offer, your customers may begin to associate your store with the lower-quality items and start looking for a new place to shop. Eventually, you will start getting in a clientele that doesn’t mind the subpar products because of their lower prices, but you have to determine if your business can survive in the interim. 

Consumer Product Expectations

Along the same line of the quality of the product pitfall is the consumer product expectation pitfall. Once you have an established customer base, your business will be known for what it offers. Switching up the products you offer, even if you are only changing brand names, can spell big trouble for your business. Most consumers are creatures of habit, and most have at least a small sense of brand loyalty. For these customers, small changes to your product line may encourage them to look for another store to find the products they want. For example, if you offer a sporty clothing line by XYZ, switching to a sporty clothing line from ABC may send some customers to your competition that sells the XYZ sporty clothing line.

Hidden Costs

Buying retail merchandise has some hidden costs. Your supplier or vendor may charge a handling fee. Shipping costs are another fee. You will have to decide if you are going to let your bottom line cover the cost or if you are going to pass the cost along to your customers. Quantity discounts are sometimes offered, meaning you will pay less money per piece if you order more pieces. While this may seem like a good deal, if you can’t sell those extra pieces, it is usually a good idea to just stick to the smaller quantities, even if you have to pay a little more per piece.

Supply and Demand

If the retail merchandise you offer at your store suddenly becomes very popular in the market as a whole, you may find that your suppliers and vendors increase the price you have to pay per item. You then have to pass this cost along to your customers, who may not like you increasing the price of the items you sell. Again, you have to decide if you would cover the increased cost of your products for a short time while slowly increasing the prices to allow your customers to get used to the new prices.

Pricing

The prices that manufacturers place on their products will determine whether or not a customer is willing to purchase them. If a product is priced too low, the manufacturer and seller will lose money. If the item is priced too high, consumers won’t buy the product and it will end up on the discount rack or will be discontinued. The seller will again lose money. When a product is priced correctly, the result will be increased profit. According to the international consulting group Deloitte, 10 of the largest retailers in the world are from the United States and Europe. In 2009, these retailers had combined sales of $1.15 trillion. 

Cost of Goods

Costs include how much money it takes to make the product and how much it takes to purchase the item from a wholesaler. A retailer needs to know this amount in order to be able to mark up the price to make money.

Operating Expense

Operating costs are also key to determining retail price. This includes any money that is used to manufacture or sell the goods. It can include payroll for laborers, marketing, or office supplies.

Conclusion

Owning a retail business is not without risk, but the potential for success is unlimited with the right approach. Because there is no profit ceiling, you can continue to build your income as you build your business. The ability to buy products for your own needs at wholesale prices is a definite plus. 

Care has to be taken in product selection, and customer preferences must be taken into account. You don’t want to risk losing customers because Product B has a cheaper wholesale price than the customer’s preference, Product A. If your supplier or vendor suddenly raises prices for one reason or another, you may have to pass that price on to the customers, some of whom may then take their business elsewhere. If you can find the right balance between pricing and markup, however, your chances of thriving are very good.

 

 

Thank You For Registering

We've received your request.

To ensure you receive your inspirational daily quotes, please add email@business.com to your safe sender list.