Page 17 - DMGT554_RETAIL_BUYING

Retail Buying

Notes Product Knowledge

How could a buyer make merchandise purchasing decisions without the necessary product
information? New technology has significantly expanded vendor offerings, and only the educated
can satisfactorily evaluate them.
A good starting point for gaining product knowledge is by taking classes offered in many
colleges. Many offer apparel and accessories courses that detail the language of the trade and
detail construction techniques, silhouette explanations, and technical information on textiles
and nontextile fabrications. Other courses feature information needed by home furnishings
buyers, such as materials used in the products, furniture periods, color comprehension, and so
forth. Still other courses are geared for those who purchase hard goods and feature information
about appliances and furniture.
In addition to formal college instruction, a wealth of information can be acquired through
discussions with merchandise managers, trips to factories, meetings with market representatives,
interaction with vendors, and reading trade journals.
With all of the merchandise changes being offered in most product classifications, it is essential
that the buyer update his or her knowledge on a regular basis. Only then will he or she be able
to help maximize profits.

Objectivity

When you purchase for your own needs, the ultimate selection is based purely on what makes
you happy. For professional purchasers to follow this approach would be disastrous for the
company.

For example, a female buyer, with the responsibility to buy dresses cannot gauge each style by
her personal preferences. While the dress in question might satisfy her own needs, the selection
could be inappropriate for her customers. Similarly, a male buyer for men’s apparel cannot
purchase items that seem appropriate for his personal needs unless they fit into the model stock
that has been preplanned.
Objectivity must prevail. Choices must be made keeping in mind the wishes of the customers
that have been reflected by past sales records, consultations with market representatives, trade
paper forecasts, and other objective resources. If this rule is not followed, the store’s shelves are
apt to be left with merchandise the customers have rejected.

Knowledge of the Market

In order to make certain that the best possible merchandise will be chosen for the store’s clientele,
the buyer must know about all of the possible resources from which purchases may be made.
Not only must they know where the best deals may be made, but they must be able to assess
which vendors will deliver the goods on time (many are notorious for late shipments), which
will deliver goods exactly like the samples, and which have the best production capabilities.

Although selection of the right products is extremely important, without the quality and time
considerations the goods might not prove to be successful sellers.

Forecasting

One of the more difficult tasks that buyers face is predicting what direction the merchandise is
taking. For purchasers of staple items such as appliances, food, athletic socks, and the like, there
is little risk involved.

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