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Unit 5: Buying for Off-site Retail Operations

must address much broader merchandise requirements than their store buyer counterparts. The Notes
merchandise, if so widely distributed, must have a “universal” appeal so that the customer in
Austin, Texas, will have the same interest as the one in Baltimore, Maryland. In addition to item
selection, the price factor is an important consideration. Often, catalog shoppers seek merchandise
that features a price advantage or is at least competitive with the stores they may visit in person.
Numerous catalogs use the phrase special prices to get shoppers’ attention. To bring the most
favourable prices to the consumer, the buyer must be a talented negotiator and must obtain the
lowest prices possible from the vendors. Finally, continuity must be maintained in many catalogs.

Example: Spiegel publishes its major catalog twice a year. With such a long selling
period, the buyer must make certain that the vendors represented in the catalog will provide the
goods in a timely fashion for the six-month period the catalog will be used. If this is not the case,
sales will be lost, and customers might start to look elsewhere for their needs. This is a very
important consideration that a buyer must address before any order is placed.

5.4.2 Home Buying Networks

As in the case of catalog operations, home buying outlets also serve enormous markets. The
buyers employed by these companies must also evaluate the “visual” appeal of the items selected.
Will the merchandise have an attractive on-screen appearance that will motivate shoppers to
become customers? Will it be necessary to feature the merchandise on live models to make it
more appealing? Will it be necessary to underscore specific selling points to convince the viewer
to buy?

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Caution A careful visual inspection of the items considered for purchase must be made to
make certain that the sales potential for each can be achieved.

5.4.3 E-Tailing

The fundamental considerations regarding merchandise acquisition for both catalogs and home
purchasing networks are the same for those who buy goods to be sold on the Internet.

Buyers who purchase for brick-and-mortar operations as well as Internet Web sites must have
both divisions in mind when they go to the wholesale markets. The items for the stores will
have a narrower target market, while those destined for sale on the Internet will have widespread
appeal. In cases, where the store and the Web site are totally separated, purchasing by the Web
site buyer is a different responsibility. Attention to in-store shoppers’ needs is not a requirement.
Buyers whose companies are strictly Internet based need to choose merchandise only for that
outlet. These goods must be evaluated in terms of their appeal to a global audience and the
prices for which they would retail. With price competition an extremely important factor on the
Internet, the buyers must be excellent negotiators so that they can purchase at the lowest possible
wholesale prices.
The time factor is another consideration.

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Caution The buyer must determine the potential “life” of each product and be ready to
make adjustments to the Web site with new styles if sales for current goods decline.

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