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Unit 4: Buying for Off-price Retail Operations

In times when vendors are overstocked and must make room for the next season’s offerings, the Notes
indirect purchasers are a means to quick merchandise disposal. Not only does the retailer
benefit from this association, as we have learned, but so does the producer, who needs to sell to
many stores without the complications of individually contacting each one.

Self Assessment

State whether the following statements are true or false:
7. Some companies that specialize in off-price purchasing are either in business solely to
cater to this retail segment or have separate divisions that deal exclusively with discounted
goods.
8. In times when vendors are overstocked and must make room for the next season’s offerings,
the indirect purchasers are a means to quick merchandise disposal.



Caselet Price Point Buying

he Doneger Group has been a mainstay in the fashion industry for many, many
years. Starting out as a small resident buying office, headed by its founder Henry
TDoneger, it now enjoys the enviable position of being the largest company of its
kind in the United States. The growth has taken place with the acquisition of numerous
rival companies, both large and small, and the introduction of new divisions to serve
specialized needs. One of these specialized divisions is called Price Point Buying.
Price Point Buying is an off-price buying service that specializes in popular-priced to
moderate-priced women’s sportswear in all size ranges. They are dedicated to servicing
volume-oriented retailers who have a constant need for off-price merchandise. With the
use of a great number of market specialists who are well-versed in this type of product, the
retailer is provided with a competitive edge. Coupled with the advantage of professional
representation is enormous buying power as well as a presence right in the wholesale
market.
One of the major advantages of Price Point Buying is that vendors are always seeking
them out with discounted merchandise. Buyers at this Doneger division are regularly
contacted by manufacturers and designers for the purposes of presenting off-price goods.
In addition to these contacts from the vendors, the buying specialists make daily rounds to
make certain that they haven’t missed any buys for their clients.
In order to better serve the needs of the retailers they represent, the staff members have
extensive retailing backgrounds, and they understand what is necessary to ensure their
store’s profitability.
Interaction with their client base is accomplished by several means of communication.
Fliers, telephoning, faxing, and now the Internet are means of letting the merchants know
what is available. The Internet has proven to be a device that helps make purchases faster.
By subscribing to the Price Point Buying Web site, retailers are able to get photographs
and facts on their computers about merchandise that is available at reduced prices. In a
matter of seconds, the items available for sale are photographed, downloaded, and sent to
the potential purchasers.
Contd...

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