Mors 200 Arts Final - Klicker Chapter 11 - Merchandising Part 2

All half couch caskets may be in one area and full couch caskets in another, or they may be mixed. In many parys of the country funeral homes will only show one style, usually half-couch caskets.

The casket display is usually arranged in such a way that the family moves through the room in a manner that makes it obvious to them the differences in the quality of the caskets.

Direct Selection Room Procedure Indirect Selection Room Procedure

Presenting caskets whereby the funeral director remains in the selection room throughout the entire selection process.

Some families prefer the support given by funeral directors. The funeral director is better able to meet the needs of the family.

No privacy for family to discuss matters relating to their decision when the funeral director is present. The presence of the funeral director may influence the client's selection. Non-verbal communication which occurs can both be negative and positive The funeral director may misinterpret the needs of the family.

The method of selling caskets whereby the funeral director does not stay in the selection room during the selection process, but instead leaves after his introductory presentation. This option requires that the family be given adequate pre-counseling and a clear description of the casket, that the price be visible in each casket, and that the display easily show comparative values.

Privacy exists for the family Elimination of funeral director's influence Nonverbal communications do not occur The opportunity for the funeral director to misinterpret the needs of the family does not exist. Written information about each casket may be analyzed more carefully.

Some families prefer the support of the funeral director. The funeral director is not present to answer any questions which may arise. Written information could be ignored or misinterpreted.

Burial Vaults Urns Clothing Register books, religious or fraternal symbols, memorial cards

Some funeral homes use full-size vaults while others use a scale model display or photographs. Should be as informative as casket information

Should be prominently and attractively displayed either in the selection room or a separate cremation room.

Displayed on a stand or in a case, not standing next to caskets. Shoes and undergarments usually not displayed Place in casket for the family to see for matching

Some funeral directors prefer to display these in the arrangement office rather than the selection room.

Catalogue or computer 25% of funeral homes nationally do not have a display room. Advantages: Ability to show more caskets Inventory costs decrease Families appreciate not going into a room full of caskets. Families appreciate being able to make arrangements in their home People select better caskets The casket room can be put to better use as another chapel or reception room.

The percentage derived by dividing the wholesale amount of the merchandise by the retail price of the merchandise. Measures the value received for each dollar spent by the consumer. Ensures value progession- if buyers spend more, they should get more.

Retail price minus the wholesale cost. Measures profit of each casket to the funeral director/firm.

The relationship between the wholesale cost of the merchandise and the total cost of both service and merchandise to the consumer.

A price determination method whereby the mark-up is multiplied by a constant factor. The same mark up is applied to all caskets. Easy to use and provides quality No improvement in CVI and no incentive to buy up.

A pricing method where the mark up varies. Higher priced caskets are given a higher mark up. Makes available lower cost CVI decreases with higher priced funerals at low end merchandise. Applies negative pressure to the assortment Low margin at lower end Best value at lower end assortment Lose-lose situation

A pricing method where there is an inverse relationship between the markup and the price of the casket. Higher priced caskets given a lower markup. CVI improves with higher priced caskets Encourages consumer to buy better merchandise Win-win situation Low end markup may be too aggressive in some markets.

Similar to declining method except the lowest priced casket is less expensive. CVI improves with higher priced caskets Encourages consumers to buy better merchandise Provides for families who require lower-priced caskets. Low margin on low-end caskets Attractive option for families who can, but don't want to spend.

The sum of a group of numbers divided by the number of units.

A value in an ordered set of values which represents the midpoint, whereby there are an equal number of values above and below the midpoint value.

The number that appears most frequently in a listing of numbers.

A division of the total into four intervals, each one representing one-forth of the total.

The caskets sold in the 2nd and 3rd quartile.

An out-of-date term used to describe having the correct number of caskets in a quartile. The number of caskets displayed in each quartile is determined by the individual funeral home's pricing system.

The number of times sales in a given price bracket occur over a fixed period of time.

A chart on which all sales are listed showing the number of sales in any sales bracket.

A method of pricing by which each unit of service and merchandise is priced seprately. FTC requires funeral homes to use this

A method of price quotation which creates one total price package for both services and merchandise.

A method of price quotation showing seprately the price of the services and the price of the casket.

A method of price quotation by which the charges are broken down into several component parts, such as professional service, facilities, automobile, and merchandise.

A method of pricing where certain items of service and merchandise are grouped together and sold at a specific price.

Should be fair Allow for profit Consistent Adjust casket cost to keep up with inflation Profit and consistency go hand in hand

Competition's price policies Legislation- fair trade laws Production costs Distribution costs Economic fluctuations Type of merchandise Marketing strategy Purchasing practices Selling costs Value

Difference between merchandise cost and selling price.

Reduction of selling price.