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Virtual Business

Virtual Business. Purchasing. Purchasing. Determining the supply of goods & services for your store. Importance of the Purchasing(Product) Decision. Businesses must decide what products consumers want & be certain there is an adequate amount of stock to satisfy demand. Buyer.

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Virtual Business

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  1. Virtual Business Purchasing

  2. Purchasing Determining the supply of goods & services for your store.

  3. Importance of the Purchasing(Product) Decision Businesses must decide what products consumers want & be certain there is an adequate amount of stock to satisfy demand.

  4. Buyer Person responsible for purchasing merchandise for resale. Small stores – the manager/owner is the buyer. Large stores – May have someone who is designated

  5. Responsibilities of Buyer • Must determine which products will have the highest demand in their store. • Must have a purchasing plan in place that orders merchandise before it is needed based on the selling season. • Must analyze sales reports to help determine how much of each product to buy.

  6. Purchasing Conflict • Shortage: If businesses purchase too little demand will not be satisfied & customers will become disgruntled and sales will be lost. • Surplus: If businesses purchase too much they can incur losses for expired goods & excess inventory expenses. • Equilibrium: At what point will consumers buy a certain amount of products at a given price.

  7. Secret to Successful Purchasing A business must track their product sales to help determine what products to buy & adjust purchasing levels to meet consumer demand.

  8. Purchasing Terms • Inventory – The total amount of goods a business has in stock on the sales floor or in the stockroom. • Purchasing Policy – Policy specifying when & the amount to purchase of a product. • Just-In-Time Inventory – A computerized system that links stores to suppliers so that new inventory can be purchased automatically as sales are made and stock falls below a specified level. • Reorder Point – The point at which merchandise is purchased to replenish stock levels. • Shrinkage – The money a business loses due to broken, damaged, expired, or stolen inventory.

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