Page 49 - DMGT554_RETAIL_BUYING

Retail Buying

Notes 3.4.2 Acquisition of “Off-Limit” Merchandise

Buyers who represent the traditional retail operations are “committed,” by the very nature of
their business practices, to sell the products at the standard, accepted prices.

Example: If a shopper goes from Saks to Neiman Marcus, he or she will find the same
line, if both stores carry it, identically priced.
Often, the price is suggested by the manufacturer, or is understood by the industry, as the price
it should be marketed. On the other hand, the discounter is reluctant to sell at the established
price since this is in direct opposition to what discounting is all about. Manufacturers of highly
desirable merchandise are reluctant to sell to the discounters because their pricing practices
might discourage traditional retailers to purchase from them. To overcome this objection, the
discount buyer must be able to convince the seller that he or she would be willing to abide by
some stipulations that wouldn’t affect the sales to the traditionalists. It might include a
commitment not to advertise the brand, or to remove the labels and identifying tags. Sometimes,
special products, under different labels, might be the answer to distinguish the lines. In any case,
the discount purchaser must be a seasoned negotiator to excel in this position.

Task Note down the factors that will influence you as a customer when it comes to
purchasing a particular retail product.

Self Assessment

State whether the following statements are true or false:
13. Every buyer for traditional operations must establish vendor relationships to ensure that
they will be treated fairly in terms of prompt delivery, return privileges, etc.
14. Establishing relationships with vendors that will bring them the best possible prices is
not a priority to discount buyers.

15. Sometimes the discounter is reluctant to sell at the established price since this is in direct
opposition to what discounting is all about.



Case Study Discount in Retal

J
ulie Stevenson has had the American dream of opening her own business ever since
she graduated from college. As a fashion buying and merchandising student she studied
every facet of the women’s wear industry and exemplified the qualities of one who
would successfully enter the field. With an excellent academic record she had many entry
level positions available to her. Still dreaming of entrepreneurship, she chose the one that
she believed would eventually help her achieve her dream.
Ms. Stevenson began as an assistant buyer of fashion apparel for Damon’s, an upscale
department store, and after just three years she was promoted to buyer. She covered all of
the domestic markets, as well as some overseas venues to make her purchases. Her record
with Damon’s was outstanding in that her planned profit margins were always achieved.
Contd...

44 LOVELY PROFESSIONAL UNIVERSITY