MIDTERM RETAIL
CHAPTER 6: LEGAL AND ETHICAL BEHAVIOR
Ethical and Legal Constraints Influencing Retailers
Pricing Constraints
• Justification for some types of price
discrimination
• Cost justification defense - Accounted for
differences in cost to:
• The seller in the manufacture, sale, or
delivery arising from differences in the
method or quantities
• Changing market conditions defense
• Danger of imminent deterioration of
perishable goods or on the
obsolescence of seasonal goods
• Meeting competition in good faith
defense
Promotion Constraints
• Promotion decisions are constrained by the:
• Federal Trade Commission Act
• Wheeler-Lea Amendment of the FTC
Act
Deceitful Diversion of Patronage
• Publish or verbalize falsehoods about a
competitor so as to divert their patrons
• Palming off
• A retailer represents that merchandise
is made by a firm other than the true
manufacturer
• False or misleading advertising claims about
the:
• Physical makeup, benefits, or the
appropriate uses for the product
Deceptive Advertising
• Requirements to challenge any claim
contained in advertising:
• The FTC must prove that the
challenged claim is contained in the
advertisement
• The claim must be deceptive
• The deceptive claim must be material
• Bait-and-switch advertising
• Advertising or promoting a product at:
• An unrealistically low price to
serve as “bait” and then trying to
“switch” the customer to a
higher-priced product
• Forbidden practices
• Refusing to show, demonstrate, or sell
the product offered
• Disparaging, by word or deed, the
advertised product
 • Failing to have sufficient quantities of
the advertised product at all outlets
listed in the advertisement
• Refusal to take orders for the
advertised merchandise to be
delivered within a reasonable period of
time
• Design sales plan or compensation
such that to discourage salesman from
selling advertised product
Deceptive Sales Practices
• Illegal practices
• Failing to be honest or omitting key facts
in either an ad or a sales presentation
• Using deceptive credit contracts
• Credit Card Act (2009)
• Protection against arbitrary
rate increases
• Not penalizing cardholders who
pay
• Protecting cardholders from
misleading terms
• Protection of vulnerable
consumers from fee-heavy
subprime credit cards
Product Constraints
• Product safety
• Consumer Product Safety Act
• Retailers have specific
responsibilities to monitor the
safety of consumer products
• Consumer Product Safety
Improvements Act (2008)
• Applies to all members of the
supply chain
• Product liability laws
• Deal with the seller’s responsibility to
market safe products
• Foreseeability doctrine
• A seller must attempt to foresee
how a product may be misused and
warn the consumer against the
same
• Warranties
• Expressed warranties: Written or
verbalized agreements:
• About the performance of a product
• That can cover all attributes of the
merchandise or only one attribute
• Implied warranty of merchantability
• Made by every retailer when the
retailer sells goods
• Implies that the merchandise sold is
fit for the ordinary purpose for
which such goods are typically used
• Implied warranty of fitness
• Implies that the merchandise is fit
for a particular purpose
• Arises when the customer relies on
the retailer to assist or make the
selection of goods to serve a
particular purpose
Supply-Chain Constraints
• Territorial restrictions
• Limit the geographic area in which a
retailer may resell its merchandise
• Lessen competition between retailers
• Violation of Sherman Antitrust Act
• Dual distribution
• A manufacturer sells to independent
retailers and also through its own
retail outlets
• Adversely affects the manufacturer-
retailer relationships
Exclusive Dealing
• One-way exclusive dealing arrangement
• Retailer has exclusive right to
merchandise the supplier’s product
in a particular trade area
• Two-way exclusive dealing agreement
• Supplier offers the retailer:
• Exclusive distribution of a
merchandise line/product in a
particular trade area
• Retailer agrees to return the
manufacturer’s favor
• Tying agreement
 • Seller with a strong product or
service requires a buyer (the
retailer) to:
• Purchase a weak product or
service as a condition for
buying the strong product or
service.
• Not viewed as a violation
• Viewed as illegal if a substantial share of
commerce is affected
Other Federal, State, and Local Laws
• Federal laws retailers must be aware of:
• Trade agreements regulating import
and export
• Laws that deal with minimum wages
and hiring practices
• State and municipalities regulations
regarding retail activities
State and Local Regulations Affecting Retailers
Ethical Behavior in Selling Merchandise
Ethics in Retailing
• Ethics: Set of rules for human moral
behavior
• Explicit code of ethics: Written policy that
states what is ethical and unethical
behavior
Ethical Behavior in the Retailer-Employee
• Implicit code of ethics: Unwritten but well
Relationship
understood standards of moral
responsibility
• Retail decision that involve ethical
considerations:
• Buying merchandise
• Selling merchandise
• Retailer-employee relationships
Ethical Behavior in Buying Merchandise
• Product quality
• Testing products to check if they:
• Adhere to stricter ethical and
environmental standards
that go beyond existing
government regulations
• Sourcing
• Retailers inspect suppliers to make
sure they are not buying :
• Illegal merchandise
• From unsavory characters
• Sustainability
• Requiring suppliers to engage in
sustainable business practices
• Slotting fees (slotting allowances)
• Fees paid by a vendor for:
• Space or a slot on a retailer’s
shelves
• Having its UPC number given
a slot in the retailer’s
computer system
• Bribery
• Offering an inducement to the
retailer for purchasing vendor’s
products
• Markdown money
• Retailers charge suppliers
when merchandise does not
sell at what the vendor
intended
• Products sold
• Should a retailer sell any product as
long as it is not illegal?
• Selling practices
• Can a salesperson, while not saying
anything false, be allowed to conceal
certain facts from a customer?
• Misuse of company assets
• Job switching
• Employees switching jobs should
respect previous employers right to
retain confidentiality
• Employee theft
CHAPTER 7: MARKETING SELECTION AND RETAIL
LOCATION ANALYSIS
Selecting a Target Market
• Target market can be reached through a:
• Store-based location in which the consumer
travels to the store
• Nonstore retailing format in which products
and services are offered at a more accessible
location
• Home page
• Introductory material on a retailer’s
Internet site
• Equivalent to a retailer’s storefront in the
physical world
• Virtual store: Collection of all the pages of
information on the retailer’s Internet site
• Ease of access: Consumer’s ability to easily and
quickly find a retailer’s Web site
• Market segmentation
• Target market: Group of customers that
the retailer is seeking to serve
• Criteria to successfully reach a target market
• Seek a measurable market segment
• Accessibility
• Segment should be substantial or large
enough to be profitable for the retailer
Retail Formats for Accessing Your Target Market

Geographic Information Systems

• Geographic information system (GIS)
• Computerized system that combines
physical geography with cultural
Location of Store-Based Retailers geography
• Culture
• Buffer that people have created
between themselves and the raw
physical environment
• Includes:
• Characteristics of the
population
• Humanly created objects
• Mobile physical structures
GIS Components
 • Dab is the breaking point from A,
measured in miles along the road to B
• d is the distance between A and B
along the major highway
• Pa is the population of A
• Pb is the population of B
• Assumptions of the retail gravity theory
• The two competing cities are equally
accessible from the major road
• Population is a good indicator of the
differences in the goods and services
• Thematic maps
available in different cities
• Use visual techniques to display cultural
• Limitations of the retail gravity theory
characteristics of the physical space
• City population does not always reflect
• Uses of GIS
the available shopping facilities
• Market selection
• Distance is measured in miles, not the
• Site analysis
time involved for the consumer to
• Trade area definition
travel
• New store cannibalization
• Factors that the retail gravity theory fails
• Advertising management
to consider:
• Merchandise management
• Perceived differences between local
• Evaluation of store managers
and other trading centers
Selecting a Retail Location
• Variety-seeking behavior
• Medical services or entertainment
facilities
• Saturation theory
Market Identification
• Examines how the demand for goods
• Trading area
and services of a potential trading area
• Geographic area from which a
is:
retailer, or group of retailers, or
• Being served by current retail
community draws its customers
establishments in comparison with
• Retail location theories
other potential markets
• Market demand potential
• Outcomes
• Market supply factors
• Retail store saturation
Retail Location Theories
• Understored
• Overstored

• Algebraic expression of the new formulation

of Reilly’s law:
• Index of retail saturation (IRS): Ratio of
demand for a product divided by available
supply
• IRS = (H × RE) /RF
 • IRS - Index of retail saturation for
an area
• H - Number of households in the
area
• RE - Annual retail expenditures
for a particular line of trade per
household in the area
• RF - Square footage of retail
facilities of a particular line of
trade in the area
Market Demand Potential
• Major components are:
• Population characteristics
• Buyer behavior characteristics
• Household income
• Household age profile
• Household composition
• Community life cycle
• Population density
• Mobility
Market Supply Factors
• Square feet per store
• Indicates whether the community
tends to have large- or small-scale
retailing
• Square feet per employee - High number
indicates:
• High level of retail technology
• Self-service retailing
• Growth in stores
• Strength of retail competition will be
greater when the community has:
• Recently experienced rapid
growth in number of stores
• Quality of competition
• Determined by asking following
questions about competitors
• What is their market share or
profitability?
• How promotional- and price-
oriented are they?
• Are they customer-oriented?
• Are they community-oriented?
• Do they financially sponsor
many civic and community
activities?
• How do they react to new
market entrants?
Site Analysis
• An evaluation of the density of demand and
supply:
• Within each market with the goal of
identifying the best retail site(s)
• Size of trading areas
• Applebaum’s technique
• Based on customer spotting and
interviewing
• Home addresses of the shoppers
are plotted on a map
• Analysts draw inferences about
trading size and competition
• Factors pertaining to size of trading areas
• Stores that sell products that consumers
want , in the most convenient way, will
have smaller area
• As consumer mobility increases trading
area increases
• As the size of the store increases, its
trading area increases because it can
stock:
• Broader and deeper assortment of
merchandise
• As the distance between competing
stores increases, their trading areas will
increase
• Natural and human-made obstacles limit
trading area
• Description of trading area
• Information concerning:
• Trading area for various
retail locations
• Buyer behavior of the trading
area
• Demand density
• Extent to which the potential demand
for the retailer’s goods and services is
concentrated in certain areas
• Retailers need to identify the major
variables influencing their potential
demand, which can be examined by:
• The types of customers who
already shop in the retailer’s
present stores
• Supply density
• Extent to which retailers are
concentrated in different areas of the
market in question
• Site availability
 • Eminent domain law
• Inherent power of the
government to seize private
property without the
owner’s consent in to benefit
the community
• Construct a map of available sites in
each community being analyzed
Site Selection
• 100 percent location
• No better use for a site than building a
retail store
• What may be a 100-percent site for one
store may not be a 100-percent site for
another
• To evaluate a site, consider:
• The nature of the site
• Traffic characteristics
• Type of neighbors
• The terms of purchase or lease
Nature of Site
• Traffic characteristics
• Amount of traffic that passes a site is
an important determinant of the
potential sales at that site
• Traffic-related aspects to be evaluated
• Availability of sufficient parking
• Direction of traffic relative to the
shopping area
• Type of neighbors - Good neighboring
businesses:
• Are compatible with the retailer’s
line of trade
• Help generate additional business
for each other
• Store compatibility: Two similar
retail businesses located next to
each other:
• Realize a sales volume
greater than what they
would have achieved if they
were located far apart
• Retail clusters - Groups of stores closely
located and share similar characteristics
• Benefits
• Customers don’t need to
decide on the specific store
to visit but just need to
decide to travel to the retail
cluster
• Allows customers to walk
from store to store,
comparing prices, products,
and service
• Do not always benefit
competitors
Terms of Purchase or Lease
• The retailer should review:
• Length of lease
• Exclusivity clause
• Guaranteed traffic rate
• Anchor clause
Expected Profitability
• Construct of a pro forma return-on-asset
model for each possible site comprising of :
• Net profit margin, asset turnover,
and return on assets
• To evaluate sites on their potential return
on assets, estimate:
• Total sales
• Total assets
• Net profit
CHAPTER 8: MANAGING FINANCES
The Merchandise Budget
• Merchandising: Planning and control of the
buying and selling of goods and services
• Merchandise budget: Plan of projected sales
for an upcoming season:
• When and how much merchandise is
to be purchased
• What markups and reductions will
likely occur
• In developing the merchandise budget, the
retailer must anticipate:
• Sales for the department, division, or
store
• Stock on hand required to achieve
the sales plan, given the level of
inventory turnover expected
• Reductions required in the original
retail price
• Additional purchase required
• The gross margin that the store or
department is likely to contribute
• Rules to prepare the merchandise budget:
 • Should always be prepared in
advance of the selling season
• Language of the budget must be easy
to understand
• Must be planned for a relatively short
period of time
• Should be flexible enough to permit
changes
Formulas for the Six-Month Budget
Space Utilization Matrix
• Matrix projection and forecast of retail
store to maximize space utilization with
sales performance.
• Take into consideration target for periodic
basis, ie. Monthly.
• Take into consideration selling and non-
selling space/areas
• Eg. 100sqm retail store space
• 10sqm for dressing room
• 10sqm for counter and stockroom
• 50sqm women’s apparel
• 15sqm men’s apparel
• 5sqm custom accessories
• 5sqm bags and shoes
• 5sqm foyer, client meeting for
bespoke area
• Eg. 100sqm retail store space 75k
rental/month
• 10sqm for dressing room NON-
SELLING
• 10sqm for counter and stockroom
NON-SELLING
• 50sqm women’s apparel 145,000
(2900/sqm)
• 15sqm men’s apparel 30,000
(2000/sqm)
• 5sqm custom accessories 10,000
(2000/sqm)
• 5sqm bags and shoes 15,000
(3000/sqm)
• 5sqm foyer, client area for bespoke
area 160,000 (32000/sqm)
= PHP 360,000
• Determining planned sales
• Estimate planned sales for the entire
season as well as for each month
• Examine the previous year’s recorded
sales
• Make adjustments for the upcoming
merchandise budget
• Prediction market: A market where a
synthetic financial security reflects if :
• A future event will or will not
occur and individuals then buy
and sell this security
• Determining planned BOM and EOM
inventories
• Stock-to-sales ratio: Depicts the
amount of stock to:
• Have at the beginning of each
month to support the
forecasted sales for that month
• Planned average beginning-of-the-
month (BOM) stock-to-sales ratios
are:
• Either based on industry
averages or are calculated
directly from a retailer’s
planned turnover goals
• Fluctuate month to month
because sales tend to fluctuate
monthly
• Express inventory levels at
retail, not cost
• BOM inventory for one month equals to:
• The end-of-the month (EOM)
inventory for the previous month
• Determining planned retail reductions
 • Allowances for reductions in the
dollar level of inventory that results
from nonsale events
• Three types - Markdowns, employee
discounts, and stock shortages
• Reflect the additional purchases
needed for sufficient inventory to
begin the next month • Regulations to be considered while
• Are subject to constant change presenting income statement
• Determining planned purchases at retail • Generally Accepted Accounting
and cost Principles (GAAP) regulations
• Add planned sales, planned retail • Allows for variations in how
reductions, and planned EOM retailers report certain
inventory expenses
• Subtract planned BOM inventory • Internal Revenue Service (IRS) rulings
• Planned purchase at cost • Provides a tax break for
• Subtract the markup percentage retailers by allowing to
from the retail percentage of 100 estimate inventory shrinkage
percent Balance Sheet
• Buyer’s planned gross margin • Financial statement that identifies and
• Take planned initial markup and quantifies all the firm’s assets and liabilities
subtract planned reductions • Shows the financial condition of a retailer’s
Retail Accounting Statements business at a particular point in time
• Accounting practices followed depend on: • Basic equation for a balance sheet:
• Management objectives Assets = Liabilities + Net worth
• Size of the retailer • Comparison of current and previous
• Types of financial statement balance sheets enables to:
• Income statement • Observe changes in the firm’s
• Balance sheet financial condition
• Statement of cash flow
Income Statement
• Financial statement that provides a
summary of the sales and expenses for a
given period
• Comparison of current and prior results
provides trends or changes in:
• Sales, expenses, and profits
Statement of Cash Flow
• Lists sources and types of all cash revenue
and cash expenditures for a given time
period
• Positive cash flow - When cash
inflow exceeds cash outflow
• Negative cash flow - When cash
outflow exceeds cash inflow
• Projects the cash needs of the firm
Dressing up Financial Statement
• Accrual accounting method
• Allotting, revenues and expenses to
specific periods to:
• Allocate income to the quarter
or year in which it was
effectively earned
• Provides a more accurate picture of
what’s happening to the business at
a given time
• Aggressive accounting methods
• Retailers make their statements look
good
• Methods to window dress
accounting records
• LIFO liquidation
• Improving the current ratio
• Current ratio: Current
assets divided by
current liabilities
• Massage cash
• Convert short-term loans to
long-term loans
• Extend payment time
Connecting the Retail Accounting Statements
Inventory Valuation
• Retailer must make two major decisions
with regard to valuing inventory:
• The accounting inventory system to
be implemented
• The inventory pricing method to be
used
Accounting Inventory System
• Cost method
• Provides a book valuation of
inventory based solely:
• On the retailer’s cost of
merchandise including freight
• Limitations - It is difficult to:
• Do daily inventories or even
monthly inventories
• Cost out each sale
• Allocate freight charges to each
item’s cost of goods sold
• Used by retailers with big-ticket items
and a limited number of sales per day
• Retail method
• Values merchandise at current retail
prices, which is then converted to
cost based on a formula
• Basic steps
• Calculation of the cost
complement
• Cost complement = Total
cost valuation/ Total retail
valuation
• Calculation of reductions from
retail value
• Conversion of the adjusted
retail book inventory to cost
• Closing inventory =
Adjusted retail X Cost
complement book
inventory
• Advantages of the retail method over the
cost method of inventory valuation:
• Accounting statements can be drawn
up at any time
• Inventories need not be taken for
preparation
• Physical inventories using retail
prices:
• Are less subject to error
• Can be completed in a shorter
amount of time
 • Provides an automatic, conservative
valuation of ending inventory as well
as inventory levels
• Disadvantages of the retail method
• Method of averages
• Closing inventory is valued at
the average relationship
between cost and retail
• Large retailers offer many
different classifications and
lines with different
relationships
• Places a heavy burden on
bookkeeping activities
Inventory Pricing Systems
• FIFO (first in, first out): Values inventory
based on the assumption that:
• Oldest merchandise is sold before
the more recently purchased
merchandise
• LIFO (last in, first out): Values inventory
based on the assumption that:
• Most recently purchased
merchandise is sold first and the
oldest merchandise is sold last
• Advantage of the LIFO method:
• Results in lower profits on the
income statement and lower income
taxes
• Helps retailers in planning process
• Accurately reflects replacement
costs
CHAPTER 9: MERCHANDISE BUYING AND
HANDING
Major Steps in Merchandise Buying and Handling
• Merchandise management
• Analysis, planning, acquisition,
handling, and control of the
merchandise investments of a retail
operation
Merchandise Planning
• Gross margin return on inventory
• Gross margin divided by average
inventory at cost
• It is the gross margin percent
multiplied by net sales divided by
average inventory investment
• Calculating BSM
• Average monthly sales for the season
• Total planned sales for the
season/Number of months in the
season
• Average stock for the season
• Total planned sales for the
season/Estimated inventory
turnover rate for the season
• Basic stock
• Average stock for the season –
Average monthly sales for the
season
• Beginning-of-month stock at retail
• Basic stock + planned monthly sales
• The PVM is calculated as follows:
- BOM stock = Average stock for season X
½[1 + (Planned sales for the
month/Average monthly sales)]
• An absolute variation is simply the difference
between start (base value) and the new (final
value) one. Eg. Base is12.37 and Final is 13.12,
the difference is .75. Compute (.75/ 12.37
(base) x 100 = 6.06
• The PVM is followed when stock is stable.
When stock does not change considerably,
the plan and monthly inventories are closer to
monthly average.
• Calculating WSM
- Number of weeks to be stocked =
Number of weeks in the period/Stock
turnover rate for the period
- Average weekly sales = Estimated total
sales for the period/Number of weeks in
the period
- BOM stock = Average weekly sales X
Number of weeks to be stocked
 • The SSM can be computed as follows:
- Average BOM stock-to-sales ratio for the
season = Number of months in the
season/Desired inventory turnover rate
Merchandise Control
• The SSM can be computed as follows:
- Average BOM stock-to-sales ratio for the
season = Number of months in the
season/Desired inventory turnover rate
• Open-to-buy (OTB)
• Dollar/Peso amount that a buyer can
spend on merchandise without:
• Exceeding the planned
dollar/peso stocks
• Common buying errors
• Buying merchandise that is priced
either too high or too low for the
store’s target market
• Buying the wrong type of
merchandise or buying merchandise
that is too trendy
• Having too much or too little basic
stock on hand
• Buying from too many vendors
• Failing to identify the season’s hot
items early
• Failing to let the vendor assist the
buyer by adding new items or new
colors to the existing mix
• Planning stock levels is affected when:
• Sales for the previous month were
lower or higher than planned
• Reductions are higher or lower than
planned
• Shipments of merchandise are
delayed in transit
Inventory Planning
• Converting peso plan into inventory plan
• Optimal merchandise mix
• Contrasting factors
• Managing the inventory
• Using the item file to manage
inventory
• Conflicts in stock planning
• Reviewing inventory performance
Optimal Merchandise Mix
• Merchandise line: Group of products that
are closely related because they:
• Are intended for the same end use
• Are sold to the same customer
group
• Fall within a given price range
• Category management
• Simultaneous management of:
• Price, shelf-space
merchandising strategy,
promotional efforts, and
other elements of the retail
mix
• Based on the firm’s goals, the
changing environment, and
consumer behavior
Constraining Factors
• Dollar/Peso-merchandise constraints
• Retailers try to overcome the
dollar/peso constraint by:
• Shifting the expense of carrying
inventory back on the vendor
• Consignment (pay from scan)
• Vendor retains the ownership of
the goods
• Vendor establishes the selling
price which is paid when the
goods are sold
• Helps reduce risk for seasonal
products
• Extra dating: Allows the retailer extra
or interest-free days before the period
of payment begins
• Space constraints
• It is important to have enough empty
space to separate the distinct
merchandise lines
• Operation guides- Tell how much
space should be between each fixture,
rack, display, and so forth
• Merchandise-turnover constraints
 • Retailer must know how various
merchandise mixes will affect
inventory turnover
• Market constraints
• Affect decisions on variety, breadth,
and depth
• Have a profound effect on how the
consumer perceives the store
Managing Inventory
• Decisions pertaining to:
• When to order and reorder
inventory
• Direct and indirect costs involved in
maintaining the inventory
• Requires conducting physical audits
• Forecasting the factors that will drive
production and distribution costs
Using the Item File to Manage Inventory
• Requires the buyer make decisions
pertaining to:
• How many items to create in the
system
• Linking new items to existing items,
where required
• Determining whether the item will
be displayed:
• Everyday on permanent
store fixtures or will be a
special buy
• Replenishment
• Buying or selling inventory
• Affects the merchandise budget
Conflicts in Stock Planning
• Maintaining a strong in-stock position on
genuinely new items while:
• Avoiding new products that fail in
the introductory stage
• Maintaining an adequate stock of the basic
popular items while:
• Having sufficient inventory dollars to
capitalize on unforeseen
opportunities
• Maintaining high inventory-turnover goals
while maintaining high gross-margin goals
• Maintaining adequate selection for
customers while not confusing them
• Maintaining space productivity and
utilization while not congesting the store
Reviewing Inventory Performance
• Line review - Taking data and summarizing
it to understand trends and fashion
• To be successful, buyers need to have both
creative and quantitative analysis
capabilities
Selection of Merchandising Sources
• Following criteria should be considered by
the retailer
• Selling history and consumers’
perception of the manufacturer’s or
wholesaler’s reputation
• Reliability of delivery, trade terms,
and projected markup
• Quality of merchandise and after-
sales service
• Transportation time and
distribution-center processing time
• Inventory carrying cost and net cost
• Country of origin and fashionability
Vendor Negotiations
• Negotiation
• Finding mutually satisfying solutions
when the retailer and vendor have
conflicting objectives
• Types of discounts that can be
negotiated
• Trade
• Quantity
• Promotional
• Seasonal
• Cash
• Trade discount (functional discount)
• Compensation for performing
certain wholesaling or retailing
services for the manufacturer
• Quantity discount
• Price reduction on purchase large
quantities of merchandise
• Promotional discount
• Provided for performing an
advertising or promotional service
for the manufacturer
 • Seasonal discount In-Store Merchandise Handling
• Provided for purchasing and taking
delivery of merchandise in the off-
season
• Cash discount
• Offered to the retailer for the
prompt payment of bills
• Quantity discount
• Noncumulative quantity discount:
Based on a single purchase
• Cumulative quantity discount: • To minimize the threat of hijacking:
Based on the total amount • Eliminate the retailer’s name from
purchased over a period of time the side of containers carrying the
• Free merchandise: Merchandise is cargo
offered in lieu of price concessions • Install electronic monitoring devices
• Cash discount on all shipment vehicles
• Types of future-dating negotiation • Screen all internal transportation
• End-of-month (EOM) dating personnel as well as third-party
• Middle-of-month (MOM) logistics personnel in each market
dating • Hire security personnel for each
• Receipt of goods (ROG) shipment
dating
• Extra (EX) dating
• Anticipation

Delivery Terms

Packaging
• Packaging display method
• Changes the cost
• Is negotiated as part of the price