TABLE OF CONTENTS
PURCHASING, RECEIVING, PRICING, SALES & PROFIT
CASH, CHECKS & CREDIT CARDS
POLICIES AND PROCEDURES
view Camp Store layouts / ideas
The camp-resort store
is a very important part of your total operation. The store provides
a service and convenience to the camper while providing a source
of income to you, the owner. A camp-resort store is classified as
a "C-Store" (convenience store). General characteristics
of the convenience store are:
- customer convenience/self service shopping
- professional atmosphere
- variety of quality and brand merchandise
- product groups have different markups (one group is competitively
priced, second at suggested retail and a third group priced at
- point of purchase advertising and promotion
In this store, you are
operating many types of businesses under one roof.
2) Apparel shop
3) Souvenir shop
4) RV supply store
5) Toy & Hobby store
Stores with proper fixtures,
sensible layouts, generous merchandise selection, attractive displays
and aggressive merchandising can produce up to a 50% gross margin
of their total camp-resort operation from the camp-resort store.
The profits from your
camp-resort store depends on many factors in addition to sales volume.
Pricing, selection, and positioning of merchandise; productivity
of employees and space; and all overheard expenses, must be considered
in your overall plan.
- Sales volume depends on the ability to meet
customer demands. Measure sales performance on a daily or weekly
basis, by department.
- Gross margin depends on the ability to make
right price decisions. This will depend on cost of the merchandise,
your competition, shrinkage, markdown and turnover.
- Space productivity should be measured by actual
sales compared to square footage devoted to each department or
- Profits are governed by the expense of the
overall operation. Measure each element of expense, set up controls
to reduce expenditures and maintain them to produce satisfactory
Campers today are convenience
oriented - if you have what they are looking for they will buy from
you. Understanding why and what they buy and encourages additional
sales by "needs" and "wants". "Needs"
are necessities like food, drink, and toiletries. "Wants"
are almost everything else you sell. You must tempt each customer
into buying "wants". The "wants" list being
the most profitable items in your camp-resort store means you must
encourage campers into buying these items from you with attractive
displays, helpful sales clerks and a variety of merchandise.
All camp-resort store
employees should be courteous and helpful to customers. They should
be familiar with the merchandise, it's location and prices as well
as the features.
store manager must professionally organize and run the
operation. Purchasing, inventory, pricing are along with managing
the store operations all the responsibility of the manager.
clerks are responsible for handling merchandise sales,
restocking, cleaning, merchandising shelves for best potential sales,
preparing daily cash report accountability and cash drawer at end
of their shift.
Store hours must be posted
in a prominent place and hours must be established for the benefit
of your customer, not your employees or yours. Recommended operating
hours are 7:00AM to 11:00PM during the busy season and 8:00AM to
8:00PM during the shoulder season. A staff member must be available
24 hours per day during your "officially open" season.
The absolute minimum acceptable registration, store and laundry
hours during the "off season" is 8 hours.
Proper store layout is
essential in providing customer service, inventory control, and
maintenance. Sufficient space must be allocated to each department
to properly display the merchandise selection. The layout of the
camp store should be designed to move customers through the aisles
to get to the most often sold merchandise -- the "needs"
(i.e.: dairy products, bread, bakery goods, etc.). These items should
always be located at the rear of the camp store. As a result, customers
entering must pass through one or more aisles to reach the dairy
case or bread and pastry displays and will be exposed to toys, souvenirs,
candy, health and beauty aids, RV supplies, etc. and create impulse
sales of the "wants". The check out counter should be
conducive to point-of-purchase advertising. Special displays located
along the counter "hit" every customer. Employees behind
the counter should have a good view of the entire store.
Customers need to be able
to move up and down aisles easily and with no congestion. This helps
produce more sales. Recommended aisle spacing follows:
- 36"-42" wide aisle to provide adequate space for shopper
to pass in aisle and make merchandise on bottom shelf visible
- 48" aisle, no less than 42", in front of refrigeration
- 48" aisle in front of checkout and registration counters.
- 36" spacing between garment fixtures.
- 36" spacing between gondolas.
- 36" spacing between feature tables.
Grocery, RV supply, health
and beauty aids, house wares, toys and etc. are displayed on commercial
metal gondolas and wall units. Recommendations for camp stores are:
- Wall units with 16" base, 71" high in 3' sections.
- Gondolas 16" and 16" with 4" jam post making
overall width 36"; 51" high and 3' wide sections.
- 3 shelves per section on gondolas.
- 4 shelves per section on wall units.
- 12" deep shelving used on all layouts except health and
beauty aids department which requires 6" or 8" deep
- End counters 36" width with double pegboard back requiring
only 3-12" deep shelves and 1-6" top shelf to accommodate
a 7" x 11" sign and holder.
- All gondolas are equipped with double pegboard panels and wall
units are equipped with single pegboard panels.
Apparel can be displayed
on free standing displayers or on the wall. Avoid folding apparel.
- Slat wall and 6-ball waterfall hangers.
- Spacing of waterfall hangers is 18: apart and double tiered
on a height of 6'. Twelve garments will fill an 18" x 72"
- Double slotted steel standards can also be used. These are mounted
on finished wall, anchored into studs or with molly anchors. Standards
must be anchored with exact spacing to hold spacing bars. A special
type of waterfall hanger works off the spacing bars.
- Carpet is recommended. Tight weave jute back, no pad, adhered
- 2 straight arms and 2 slant arms.
- Circular floor unit.
Eye appeal, good lighting
and "sparkle" are essential in this department to tally
- Merchandise sells best from professional, non-grocery type shelving.
- Slat wall can also be used for gift department, using plastic
shelf brackets to accommodate 8" glass shelving.
- Use 8" x 32" x 1/4" glass shelving - 6 shelves
for each section.
- 12" deeps, 3 1/2" high floor base with 3" kick
space must be used under all glass shelving for customer protection.
Base also acts as display shelf.
- Double slotted steel standards with 8" tension brackets
can also be used for display. Anchor standards on 32" centers
to accommodate glass shelves.
- Carpet is recommended. Tight weave jute back, no pad, adhered
Colors that work well
for store interiors are soothing earth tones of tans and browns
or the grey and off whites with splash of color trim.
Displays are your #1
merchandising tool. They take planning, time and energy but reflect
increased sales. A good display will require:
- good lighting
- organized displays with plentiful merchandise
- frequent product rotation
- reasonable height placement that is child-friendly & handicapped
- themed, using props
Merchandise must be arranged
and displayed to compliment the product and be displayed by department
and grouped within the department. The better an item is displayed,
the quicker it sells.
- Impulse items should be placed at eye level and near the check
- Seasonal Merchandise should be circulated to the best traffic
- All merchandise is displayed from front of shelf to back.
- Each category should be in same general area of the camp store.
- Always display mugs and cups with handles to the right.
- Shirts should be always be hanging to sell themselves.
- End shelves of gondolas should be committed to a single product
for a neater appearance, when possible.
- Merchandise should never be stacked higher than the top of the
- Adjust shelving so completed display will reflect merchandise
instead of fixtures.
- Use professional pricing equipment and tags.
- Use professional signing with visible prices. (Never use handwritten
signs or pricing)
- Rotate merchandise frequently.
- Constantly fill-in sold merchandise
Apparel looks best and
will sell faster if hanging on waterfall hangers. As mentioned previously,
spacing should be 18" apart and double tiered on a height of
6'. Twelve garments will fill an 18" x 72" wall section.
Display only two garments on each ball for convenience and to eliminate
Open wall area above and
around waterfall hangers should be used for displaying individual
garments, highlighted with co-coordinating apparel or items to create
the greatest sales potential.
Apparel lends itself to
creative displays. HANG it up, LAYER different styles, FLARE it
out and create a BUY ME look.
Essential to this department
is excitement to realize potential sales. Dramatize
your displays by building peaks and valleys into them. If you are
displaying a high ticket item, make it look expensive. If it's exciting
merchandise, make it look fun. Be creative, find a theme, and use
props such as rocks, sea shells, driftwood, wood blocks, branches
and limbs. Keep trying something different until you get a display
that sells merchandise.
The basic look for this
department is "outdoorsy". Merchandise should be displayed
by group such as water, electrical and sewer supplies, house wares,
camp gadgets, trailer/RV gadgets, large ticket items such as awnings,
hitches, holding tanks, etc., and miscellaneous. Merchandise should
be displayed on gondola shelving and peg hooks. This department
lends itself to an area set aside for slow moving or seasonal merchandising.
Each department will require
different merchandising, different decor, different lighting and
a different customer approach. Think of your store as an entertainment
theater and your determination to put on a show with action, activity,
excitement and glamour will produce the best show around.
When properly merchandised,
these tables will produce more dollars per square foot than any
other display in your store. Tables are 2' x 3' plywood construction
with paneling finish to match the checkout and registration counter.
Plans for on-site construction follow in this section.
Registration counter is
42" high with an 18" top. The checkout counter is 30 1/2"
high with an 18" top. Basic plans for on-site construction
follow. Both counters should have storage space for forms, supplies,
carry-out bags, etc.
Spinner racks used for
books, postcards, toys, etc. are discouraged as these racks normally
show more metal than merchandise. In addition, they make floor maintenance
difficult. Racks anchored flat against the wall or counter display
spinners are recommended. Spinner racks can be cut apart to make
wall rack displays.
Vinyl commercial floor
tile or quarry tile works well for floor cover. Carpeting also works
very well, especially in the gift and apparel sections, where there
is not a problem with heavy sandy soil or red dirt.
Wall lighting pulls customers
to wall selling displays. A fascia anchored to the ceiling with
fluorescent lights anchored behind will accomplish this: A roof
effect over the apparel section with lighting behind fascia is also
an attraction selling area.
RECEIVING, PRICING, SALES, PROFIT
There are five basic components of merchandising you should be aware
of—identifying your customer, purchasing, pricing,
salesmanship and profit. How good a job you do with the
first four will determine whether or not the fifth (profit) is realized.
It is obvious that the
amount of activity your store experiences is predetermined by the
number of campsites you host. However, it is also affected by the
lifestyle of your guests and the reason they are at your park. Overall,
your most frequent shopper will be the guest who comes to spend
a few days or the overnight traveler. These customers will visit
other profit centers and buy a mix of merchandise. Work on that
seasonal camper to fill the gap between arrival and departure. Normally,
they will purchase when they first arrive at beginning of season
and you'll sell them sale merchandise at the end of the season before
In merchandising, purchasing
the right kind and quality of products to stock the camp store will
make sales to campers easier, provide adequate turnover and reduce
the number of items you will need to mark down at the end of the
season. To accomplish this, you must know the needs of campers and
gain some knowledge of product shelf life, turnover rates and wholesales
sources (suppliers). Your first goal should be to establish quantities
and a variety of brands.
Supply the Following
Camper needs at Your Camp store:
HABIT BUYING: Campers,
like all other consumers, buy certain brand products out of habit.
Consider brand loyalty when you stock your store. Make it a point
to carry two or three of the most popular brands. Keep a pad next
to the register and record the number of times a brand or product
you did not stock is requested. If it becomes substantial, order
some next time you place an order.
BUYING ITEMS FORGOTTEN
AT HOME: As the camping family leaves home for their trip there
are certain traditional items that are forgotten. These include
toothpaste, deodorant, razor blades, mouth wash, aspirin, antacids,
sun tan lotion, pet food, etc. Be sure to stock these items in a
variety of brands. Again, keep that note pad handy next to the register
and record requests for items not stocked.
NEEDS OF THE WEARY TRAVELER:
Perishables are usually the first things that your campers will
need once they have set up on the campsite. On hot days, they will
be looking for something cold to drink like soft drinks, cold beer,
juices, etc. or ice cream to eat. If they have been traveling a
day or so prior to reaching your camp resort, they may also need
milk and other dairy products, eggs, bread and pastries. Again,
keep the note pad handy and this will help you develop a sense of
what campers' needs are upon arrival.
BUYING HABITS OF CHILDREN:
Most children today have spending money in their pockets when on
vacation. Heading their list of purchases are candy, ice cream,
iced drinks, sodas, potato chips. Game machines are also high on
their list, and children are a source of "impulse " sales
for small toys, tee shirts, sweatshirts, hats, and other novelties
found on display racks. Many of the smaller items should be displayed
near your register and along the counter where they will be highly
Some products may become
obsolete with time. With clothing items, this may be caused by a
change in fashions. Be careful of buying heavily into items which
may be a fad and have a relatively short period of appeal. These
items are very important to carry, but guard against overstocking
One basic step in store
operation is to create departments. There is a different
markup structure for various types of merchandise; therefore,
it is essential that departments be established. Markup on merchandise
for each department will normally adhere to percent of markup on
retail as dictated by the retail industry.
In the camp store there
is a large variance in types of merchandise offered for sales and
markup on retail will vary from 15% to 50% plus.
Certain basic departments
and items are necessary to satisfy customer demand. Examples department
listing follow. Your cash register departments should be set-up
according to your department listings.
1) Yogi Souvenir Merchandise
5) Dairy products/ice cream
6) Drinks (hard)
7) Drinks (soft)
8) Gift, souvenir & photo
10) Health & Beauty
11) House wares
14) Refrigerated Grocery
16) RV & camp equipment
17) Snack Shoppe
18) Toys & sporting goods
Bread, Hamburger & Hot
Sweet Rolls, Pastry,
Butter & Margarine
Ice Cream Novelties
Ice Cream Quarts & Pints
Pies, Cakes, Rolls
Pickles & Relish
Pork and Beans
Plastic Knives/Forks! Spoons
Noxzema/First Aid Cream
Sweat ShirtsLighter Fluid
Puzzles & Toys
THESE ARE SOME
OF THE MOST FREQUENTLY SOLD ITEMS IN THE RV AND ELECTRICAL LINE.
| Citronella Candles
4 PK Fly Ribbon
Plastic Fly Swatters
Tent Stakes, Plastic/Steel
Campers Clothes Clips
First Aid Kits
3 Way Camp Mirror
Rubber Tie Downs
Single Mantle Lantern
6' Hose Adapter
Pump Repair Kits
Plastic Fuel Funnel
|3" Termination Cap
Table Cloth Clamps
Plastic Table cover
BBQ Sticks/4 PK
Square Pie Iron
Portable BBQ Grill
Folding Camp Grill
Steel Fry Pan
2 Qt. Storage Bottle
Rectangular Dish Pan
18 Spring Clothespins
Wisk Broom W/Dustpan
Household Candles 4 PK
3" Straight Hose
|3" Curved Hose Adapter
3" Termination W13/4" Hose
3" Straight Hose
10' RV Sewer Hose
20' RV Sewer Hose
Sponge Sewer Ring
1" Hose Clamps
4" Hose Clamps
Dry Toilet Chemical
Quid Toilet Chemical
Aqua Soft Tissue/4 PK
Eagle Levels/i PR
25' Sewer Hose
50' Sewer Hose
Male Hose Coupling
Female Hose Coupling
Bulbs, Assorted Sizes
7 PK Patio Light Bulbs
14/3 25' Extension Cord
14/3 50' Extension Cord
30-20 Trailer Adapter
20-30 Trailer Adapter
Incoming shipments must
be delivered to designated areas for check-in. Verify receipt of
goods as ordered and invoiced. Verify invoice cost with order cost.
Note on invoice any difference
in cost, quality, substitution, damage and freshness. Make vendor
or carrier claims as necessary.
When cartons or boxes
are received from common carrier in damaged condition, then it is
necessary to have the delivery person note same on freight bill
or delivery receipt, as concealed damage. Claim would be filed with
the carrier to recover loss of goods and freight charges. When shipment
is refused then it is very difficult for the shipper to recover
the loss. Handle all carrier claims at store level.
During check-in of goods
the cartons and boxes are marked with cost and department number
and are then moved to display location. Before unpacking remove
from shelving all merchandise on hand. Dust merchandise, dust shelf,
check current retail price of goods on hand with price of goods
received. If repricing of goods on hand is necessary then it is
important to remove all previous price marks before repricing.
Next place new shipment
of goods on shelves, then replace older goods removed from display
and place in front of new goods.
Once you have selected
and purchased the variety of products and brands to stock your shelves,
your next task is to determine a selling price for each item. How
you price your merchandise will directly affect the rate of sale
as well as the profitability of each item. It consists of computing
a reasonable price which includes a predetermined percentage adequate
to cover overhead and earnings. This percentage is your gross profit—the
difference between the established selling price and cost. Remember,
you are basically a convenience store with sales aimed at accommodating
a market within walking distance of the camper. You cannot compete
with supermarkets, discount and large chain stores. Generally, the
amount of profit is referred to as a margin of profit on the selling
price. Your selling price must cover (a) the cost of the
item, (b) selling and other operating expenses
and (c) provide a margin of profit.
It is desirable to use
no less than a two line pricing gun on staple goods so that pertinent
information can be entered. For example: Top line may read B03150.
This would indicate the goods were received in B-February, 03-2003,
150 cost. The second line shows retail price.
Price tags should be placed
in upper right corner of package or in blank space provided on package.
All items with removable tops would be price marked on body of item
rather than on the top or cap for shrinkage control.
A single line pricing
gun is recommended for sale items where price only is necessary.
White price tags, double lined, are recommended for all basic merchandise.
Day glow price tags, single lined, are recommended for sale items.
When white tagged items
are used as a "special" or are being closed out, then
white tag would remain in place and a red tag placed on edge of
white tag so that customer can see savings.
Markup is the difference
between the cost of the item sold and the selling price. When markup
is expressed as a percentage, it is based on either cost or selling
price. Basing your markups on selling price is more meaningful since
it includes selling and operating expenses and a certain amount
for net profit as well as the cost of the item. Determining markup
on cost will not provide a margin of profit to work with. Operating
from a margin of profit standpoint will increase your chances of
operating your retail store successfully.
Just remember to subtract
desired markup % from 100% and divide difference into cost to determine
1) Yogi Merchandise
40 to 60%
2) Apparel 40 to 50%
3) Bakery 20 to 35%
4) Candy/Gum 30 to 35%
5) Dairy Products/Ice Cream 16 to 20%
6) Drinks (Hard) 27 to 32%
7) Drinks (Soft) 30 to 35%
8) Gifts, Souvenir & Photo 50 to 60%
9) Grocery 26 to 30%
10) Health & Beauty 30 to 35%
11) Household 35 to 40%
12) Ice 50%
13) Jewelry 50 to 60%
14) Meat - Misc. Refrigerated 20 to 30%
15) Reading 20 to 30%
16) RV & Camp Equipment 45 to 50%
17) Snack Shoppe 40 to 50%
18) Toys 50% +
19) Tobacco 25 to 30%
Markup is based on retail
price, not on cost.
1 here to see how to calculate Markup.
In every store operation
there are always slow sell or no sell merchandise that steal invisible,
potential earnings that are never retrievable.
Some items will fail to
respond to your merchandising efforts at regular retail.
If an item is not moving
then it is necessary to make it move through price reduction. The
item becomes closeout and should be followed up to turn it into
what ever cash you can get so that money can be reinvested in something
that sells. Return on your investment is only realized when an item
Don't wait to take necessary
markdowns. Do closeout pricing during the peak of the season while
you have an audience. If you wait until the end of the season there
are few people to take advantage of the markdowns.
Markdown action must be
started on slow sellers within the first 60 days of season opening,
and followed up through the season to sell out. POP signing is necessary
to call attention to these markdown prices. Also include flyers
in your handout packets announcing your "specials". The
big push on sell out or closeout of slow sellers is preferably July
with start date no later than August 1.
|Remember: flyers, point of purchase signing
and suggestive selling will turn this merchandise into cash.
Let the camper know you have a camp store when they make reservations—if
they know you can provide their needs, they will not stock up beforehand.
- Feature your store in your brochure and on your website.
- Put advertisements about your store on your offsite sign.
- Tell phone-in registrants you have a well-stocked store on the
Next, maneuver each camper
into your store, such as to obtain a car pass or walk through the
length of the store to get to the brochure rack. Promotions and
in-store specials should be ongoing every day. Everyone loves a
sale! Coupons are an ideal way to tell and sell campers what you
offer. Freebies are a proven traffic builder. Now that you have
that camper in your store, get him to buy something.
One time purchases, fad
and seasonal items provide excellent opportunities to increase sales
One time purchases are
normally goods purchased at an exceptionally good price on a one
time promotional price. Cost of goods would be such that items could
be priced lower than competition and still provide legitimate markup.
Fast selling and fad items
will develop during the selling season. The beat way to secure sales
is to order enough to fill demand & then sell off with out re-orders.
If you feel good about
an item and can visualize a real promotional effort of display and
suggestive selling, then go for a reorder after the initial sell-out.
Promotional plans must
be made at time of reorder and you must have the same enthusiasm
for selling when reorder is received as you did when reorder was
Percent of sales by month
for apparel items:
June 30 inventory shows
sale of 60 Yogi Bear T-shirts.
How many should you order?
If 30% of total business
season produces 60 sales then what is potential sales for season?
Total business season • 30%
= 60 sales
Total business season
X • .3 = 60
X = 60/.3
X = 200 potential unit sales
A safe re-order
would be 60 to 70% of the total potential unit sales projection
120 to 144 or 10 to 12 dozen
Sales promotions will
improve your traffic count and put dollars in your cash register
if done correctly.
Special sales and promotions
require time and effort in planning and executions. A promotional
calendar is necessary to record all promotions that you plan to
run for the season. Plans for each promotion must show what is to
be done, who will do it, and when they will do it. Plans must show
a list of merchandise specials, quantities, and price. Decide when
orders will be placed and decide on hand items that will be used
as specials. Use a floor plan to show where each item will be featured.
Detail work to be accomplished and assign responsibilities.
Signing must always
be professional and never hand-written.
Flyers are an effective way of promoting special sales. Use clip
art & legal provided by LSI to assist you in making the layout.
The flyer can be produced at an instant print shop if equipment
is not available at the camp-resort.
A list of suggested promotions and promotional efforts follows
AND PROMOTIONAL EFFORTS
1. Professional signing:
- at propane tanks of in-store specials.
- at gasoline pumps of in-store specials.
- on windows or sidewalk signs of in-store specials.
2. Special flyers:
- for each camper as they register.
- mailed for a special promotion with each reservation confirmation.
- handed out to seasonal campers.
- suggestive selling.
- shelf signs to promote an item or group.
- feature ends and tables with good signing.
- special merchandise display.
- checkout counter signage for specials.
- message repeater.
4. Intermission special
5. Video camera: Take
pictures today and show tomorrow including store shots of specials.
6. Storewide sale atmosphere
7. Early Bird Sale,
Christmas in July, Mother's Day Sale, Labor Day Clearance Sale,
Anniversary Sale, Manager's Sale, Cindy Bear weekend sale, Year
End Close-Out, Moonlight Madness Sale
8. "One Hour Specials".
9. Prize Drawings.
10. Loss Leaders - at
cost or below to generate traffic.
Ultimately three elements
determine how profitable your store will be—mark up, turnover,
and inventory. Volume discounts, co-op buying, and other overhead
minimizing techniques are important only if you sell adequate quantities!
If you try to achieve a higher turnover by reducing inventory, you
will lose sales and reduce profit because a variety of merchandise
will not be available to campers. You will also lose sales by trying
to increase turnover by increasing markup - the merchandise will
be priced too high. If inventory is increased without increasing
sales turnover then return-on-investment will fall. The best way
to increase turnover is by increasing sales - this will increase
Develop an inventory system
to obtain an in-house sales history. Past inventories will show
what has sold before, both in terms of quantity and time. Therefore,
you can take advantage of a quantity price or deferred pay plan
being offered by the manufacturer. The use of a sales history is
to help determine the narrow line between having enough to sell
and having too much inventory. Naturally, you score the highest
in the sales game when you end up with no product on closing day
without having lost a single potential sale.
Control of Inventory
The primary purpose of
inventory control is to maintain a balance that will provide you
with the most profitable level of operation. Regardless of the type
of inventory control system you use, the following basic data should
a) quantities needed
b) amount on hand
c) addition to stock (purchases)
d) subtractions (sales)
e) goods on order
f) reorder points
Whenever the quantity
on hand reaches a certain level (reorder point) you must act to
replenish the inventory if is to be kept in balance.
As a retailer, inventory
control will enable you to (1) balance stocks as to size, color,
style and price line in proportion to sales; (2) "play the
winners" as well as more slow sellers; and (3) secure the best
rate of stock turnover for each item. You will also have the added
advantage of gaining a reputation for always having new, fresh merchandise
Methods of Inventory
Camp resort stores on
the average are small retail stores of a convenience nature. Therefore,
inventory control need not be complex, difficult or expensive to
be efficient and profitable. The only method to obtain the information
needed for inventory control in your camp store is a physical count.
As you know, the law requires
one annual inventory. This is not enough, however, for a well managed
camp store. You should establish some routine to periodically account
for your inventory on hand. Frequently "walk your shelves"
and do a visual inventory.
To determine quantity
sold, add the number on hand at the beginning of the period and
the number received, then deduct the number on hand at the end of
the period. See example below.
|On hand beginning of month
|Received during month
|On hand end of mont
You should make a frequent
inventory of certain items like candy, cigarettes, etc., that turnover
rapidly to avoid running out stock. For other rapid turnover items
like soft drinks, milk, eggs, bread, potato chips, etc., your route
driver can help keep stocks adequate. Items bought through a wholesale
salesperson such as canned goods, box foods, paper products, etc.,
should be kept on inventory sheets noting the date of purchase and
Restocking shelves on
a regular basis will be a help toward controlling your inventory.
A minimum quantity of each item should be kept in the stock room.
This will vary with the item since in some cases, stocks of small,
slow moving items may all be on the shelves or counter displays.
Year End Inventory
- Carry over as little inventory as possible from season to season.
- Items remaining unchanged, in "like new" condition,
should be stored for next season opening. The cost will generally
go up and the savings will offset the cost of your tied-up capital.
Re-price the item to a higher retail if the cost of goods has
- Return what items you can to suppliers for credit.
- Close Out what's left at cost - items that won't last, (soft
drinks, batteries, and photos)?
- Items that have not responded to sales efforts should be closed
In the retail business
you are confronted with three major sources of shrinkage:
1. Your Customers
2. Your Employees
3. Vendor Delivery People
Prevention rather than
detection is the key to shrinkage control. A good operator will
install necessary controls to prevent or control shrinkage; but
in order to control, it is necessary to know what to control.
CONTROL OF THEFT
Store layout and good
employee habits can reduce shoplifting to a minimum. The main deterrent
to shoplifting is the presence of an employee. Great customer service
(approaching and asking if the customer needs help) is the best
Mirrors which reflect
hard-to-see corners or other areas help reduce shoplifting. If a
group or individual looks suspicious, walk over and straighten out
merchandise in that area. Small T.V. cameras and monitors are a
common way to prevent & catch to shoplifting and their cost
may be justified if you have a larger camp store.
Avoid blind spots in the
store layout and counters that are too high. Gondolas should be
no higher than four feet to allow clerks to see over them.
Keep in mind that cluttered
displays attract thieves. Keep your displays of merchandise neat
at all times and you will also find it easier to inventory neat
displays! Merchandise displayed in an orderly manner will become
noticeable almost immediately. Small items of high value such as
jewelry, knives, etc., should be kept in a locked display case,
close to the register.
- Plan your layout for easy viewing.
- Acknowledge all customers.
- Be alert and observe all customer actions.
- Be aware of browsers who will not make eye contact.
- Control loitering.
- Be concerned with people who are carefully & quietly observing
all of your actions and store.
- Involve all employees with shrinkage control.
- Set up security rules and enforce them.
- Double tag on sale and markdown items (white regular price,
color for markdown and special) to prevent written-in pricing.
- Use tagging gun and tear apart labels.
- Make change from first bill received.
It is important to thoroughly
screen applicants carefully when hiring employees who will be handling
money and merchandise. Follow through and check with the references
provided to get a good idea of the applicant's character, personality
Controls to follow include:
- Completely check references BEFORE hiring someone.
- Have a designated area for employee belongings.
- Don't allow shopping during working hours.
- All employees' bags should be stapled shut at the checkout and
left in the employee area for retrieval only after working hours.
- Do periodically check employee cash receipts against the contents
of their bags.
- Do not allow employees to check out relatives or friends.
- Do not allow employees who are friends to check each other out.
- If possible, never let employees work alone.
- Do not allow merchandise to be stored around the register area.
- Each cashier should have his own cash register reading when
s/he goes on the register and when s/he goes off.
- Be aware of employees who under ring or don't ring up purchases
at all. Each time a drawer is opened without a sale, the employee
should sign the receipt and put it in the drawer.
- Voids should be co-signed by a supervisor and/or the customer.
- Monitor employees during unexpected times. Supervisors showing
up unexpectedly at closing or at other odd hours can prevent theft.
Theft by vendors usually
occurs in the form of a short order or ballooning deliveries. Periodically,
run a check on the driver/salesperson. Check the merchandise delivered
against the sales slip to be sure the delivery is accurate. This
will help decrease the chances of a short delivery or receiving
and being charged for more than you ordered.
Controls to follow include:
- Do not take delivery at busy times. Your vendor
is there at your convenience, not his.
- Do not let more than two vendors deliver at
the same time.
- Do not hand back an invoice once you have signed
- Do not let credits be listed on the invoice…make
the vendor write up a separate slip. It is easy to "forget"
and add in the credits rather than subtract them.
- Always check in each piece as it is being delivered. Open move
things around so that you can see and feel what you are getting.
- Check things in away from the display so that the vendor cannot
confuse the issue by moving merchandise back and forth from the
- Check all empty cartons and boxes going out of the store to
be sure that they are empty.
- Do not give a key to a delivery person.
- Do not pay cash for goods unless you get an
official receipt immediately.
CHECKS & CREDIT CARDS
Tips on Handling
- Always ring total sales in register
- Ring each item into appropriate keyed account in register.
- Ask customer for total amount of the sale as indicated on cash
register read out.
- Always mention the amount of the sale and the money received
from the customer.
- Place money on cash register change plate. Do not place money
in drawer until total transaction has been completed and customer
is satisfied. (This eliminates most problems.)
- When returning change to customer say:
- Example: That was $3.15 out of $5.
- Then count change back to customer starting from the sale
price as indicated on register readout or sales slip
- Count each individual denomination of coin and bill back
into the customers hand.
- After the total transaction has been completed place money
in appropriate section of cash register drawer.
- Close drawer and always say "THANK YOU" for the
- Don't give employees or clerks the combination to the safe.
- Don't let large amounts of cash accumulate in the cash register.
Make collections regularly from each register throughout the day
and deposit into your safe.
- Make bank deposits daily and more frequently during busy times
if cash accumulates. Always make the bank deposit slip in duplicate.
- At the close of the business, leave the cash register drawer
open after emptying to show a potential thief that there is nothing
Tips on Handling
Checks - Checks and credit cards can be and will be used in place
of money. Here is what to do and what to look for:
- Do not accept two party checks or checks made out to cash. Only
checks made out in the name of the park should be accepted.
- Personal checks may not be accepted without the approval of
your check verification company.
- Cashing of payroll checks must be approved/disapproved by the
- Make sure all information is accurate and customer has signed
the check. The check must have name, address and telephone number
of the customer on it. Beware of low numbered or starter checks.
- Proper identification must be presented at the time of check
cashing. Request (2) ID's. One photo ID and a credit card.
- Clerk should initial check.
- Clerk then endorses the check, "FOR DEPOSIT ONLY".
- Never cash pension, social security and welfare checks.
- Traveler's checks are just like cash. A person had to pay cash
to transfer them into traveler's checks initially.
- The customer must sign when the cash is being turned in to
traveler's checks. That same person MUST also countersign their
name IN FRONT OF YOU, when using the check in a transaction. Do
not accept a traveler's check that has been signed prior
to the sale.
- Make sure the signatures are the same. If not, contact the
manager immediately. Do not cash the check.
- Train employees to look for forgery or counterfeit traveler's
Credit cards are a convenience.
Consumers enjoy buying on credit without the worry of having enough
cash on hand to pay. For the business owner, credit cards are an
essential marketing tool. Your customers expect it. Credit cards
can increase income in the following ways:
- Higher Sales - Credit card customers often
buy more extravagantly than customers who pay cash.
- Impulse Buying - Credit cards free shoppers
from limiting purchases. It opens the door for an impulse sale
to the customer who came unprepared to buy.
- Greater Volume - Offering credit card purchases
helps you to achieve higher unit sales.
- More Expensive Merchandise - Your store can
use credit card use to entice customers to purchase more expensive
merchandise than they had originally intended. It therefore opens
your door to a broader line of merchandise for resale.
- Competitive Edge- The credit card customer
is often less conscious of slight price differences and will seek
out the store that offers charge purchases.
Tips on Handling
Establish a credit card
policy and make sure your employees follow it. The easiest and safest
way to avoid credit card fraud is to have an electronic card reader.
- Don't make card imprints to be processed later.
- Always process the card through your electronic
system for immediate verification.
- Don't accept expired credit cards. Always
check the expiration date.
- Make sure cards have not been altered.
- Make sure the name corresponds with any other paperwork you
may have completed. If it does not, request another form of ID.
- Make sure signature bears a resemblance to the one on the back
of the card. If the back of the card is unsigned, do not
- Set credit limits. Be sure to get an authorization
number on any charge that exceeds your limit.
- Beware of "split sales" - two sales
transactions to get around a credit limit.
- Always return customer credit card receipt
and credit card to the customer upon completion of the transaction.
In a case where a refund
is necessary and cash must be given out - the original sales slip
must accompany the returned merchandise. A refund slip is made out
showing the merchandise, amount and date. Clerk has customer sign
form when cash exchange is made. Clerk then initials and puts form
in cash drawer.
A void sale occurs when
a button is mistakenly pushed or the merchandise is accidentally
rung up on the wrong key.
If the amount entered
was incorrect, this is considered an over-ring. A voucher must be
written out stating that an over-ring was made. The voucher should
show the amount, date and the clerk's initials. The voucher should
then be placed in the cash drawer. At this time, the merchandise
can be rung over again. The same procedure holds true if the total
amount is incorrect.
Example: A sale should
have been for a campsite, but the groceries button was pushed. A
voucher must be filled out, noting the mistake, amount, date and
initiated. The voucher is then placed in the cash drawer.
Four ways to place an
order for Yogi Bear and Operational merchandise are as follows:
The quickest & easiest way to place an order is using the
online system located at www.campjellystone.com/franchises/
This site is user & shopper friendly. It has merchandise pictures,
always has the latest sales listed, and is updated with current
& available merchandise.
2) FAX (513) 576-8670
Submit same form as for a mail order.
Submit a merchandise order form (available from LSI) completely
filled out. It is very important that you include a requested
ship date, quantity, catalog number and description. An authorized
buyer must always sign and date the form. This will be the "slowest"
way to place an order.
Phone orders are discouraged because it often leads to clerical
errors and can delay shipping. Leisure Systems office will accept
phone orders for 5 items or less. The quantity, catalog number
and description MUST be ready before your phone order. Place all
phone orders with the warehouse manager.
* Phone calls and e-mails with the VP of Retail Operations
to inquire about and discuss products are always ENCOURAGED; it
is just the ordering process that is discouraged.
Depending on the season,
merchandise orders can take up to 2 weeks to ship. Rush orders
can be accommodated, but must be approve through the VP
of Retail Operations.
POLICIES & PROCEDURES
Credit will be extended
for 30 days on most orders for sales, re-orders, and operational
supplies. Net 30 also applies on all orders for resale merchandise
placed after Symposium.
Credit terms on all re-sale
orders placed at the annual symposium are 20/40/40:
20% due June 1, 40% due
July 1, 40% due August 1
Past due invoices will
result in LSI immediately revoking all discounts, applying finance
charges, and prohibiting any remaining orders to ship.
Items imprinted with a
park location CANNOT BE RETURNED.
All other items in the
catalog may be returned if they do not meet with your complete satisfaction,
but only with prior authorization.
Orders returned without
prior authorization will be refused.
Any claim for shortages
or defective merchandise must be made within 30 days of receipt
of that merchandise and must be accompanied by a quality control
form. Leisure Systems does not accept C.O.D. shipments.
All claims for breakage,
damage, or loss must be made at once to the delivering carrier.
They are responsible for all merchandise (except glass) after it
leaves our warehouse or our vendors. Please keep damaged goods and
their original cartons for inspection by the carrier.
If the merchandise
is completely damaged... Refuse the shipment and do not
sign any delivery papers. Contact us for a replacement of the goods.
The carrier owns the damaged goods.
If the merchandise
is partially damage... Make sure the delivery carrier indicates
the extent of the damage on the delivery receipt before you sign
it. Contact the carrier within 3 days for settlement of claim.
If the damage
is concealed... You must file a report with the carrier
within 3 days. U.P.S. is not responsible for damaged glass items,
and you must report the damage to Leisure Systems Merchandising.
The carrier is responsible for all other damages.
Your picking slip will
indicate when an item has been back-ordered. Back orders will be
shipped as soon as possible, and cannot be cancelled.
PRICE CHANGE POLICY
You will be notified 30
days in advance of any price change, primarily by way of a franchisee
e-mailing. All orders in the system before the price change goes
into effect and all those received during the 30 day notice period
will receive the lower price. Any orders received after the 30th
day will be invoiced at the higher price. LSI assumes no responsibility
to notify resorts of price changes after the first notice, and there
will be no exceptions to the 30 day notice policy.
GLOSSARY OF RETAILING
"Always in Stock", never out of stock items.
Minimum amount of merchandise within a department or group to meet
In line with competition on similar or identical items.
Cost at which goods are purchased. Delivery charges are normally
added and become a part of cost.
(Direct Product Profitability) Actual dollar profit that each item
contributes to category, department or store.
Placement of merchandise on display, labels right side up. Each
label from left to right equals one facing.
Merchandise pulled forward to front edge of shelf display.
Difference between sales and total cost of merchandise sold. Also
referred to as gross profit.
A "want" item properly displayed. Creates an impulse for
Selected items sold at a price lower than established retail. Normally
used as a one time promotion.
Price reduction from original retail price of goods brought into
A price established by competition through retail practices.
Difference between cost and selling price.
(Retail) Markup dollars divided by retail dollars equals markup
Assortment of merchandise planned to meet customers demand and provide
Items that are accepted or essential to present way of life.
Purchases below normal cost and sold at regular competitive prices
or a new item that lends itself to higher markup.
Point of purchase.
Financial gains measured in terms of money. Profit is the excess
over cost of goods and expenses of earning the income.
Merchandise bought at cost for resale.
A form for listing items and recording on hand inventory and reorder
of these items.
Price at which goods are offered for sale.
Buying and selling activities of a merchant. Involves maintaining
a balanced merchandise selection to meet customer demand and promote
a balance of sales, merchandise cost and expenses.
Amount received by store in exchange for merchandise sold.
Rate of sale.
Stock keeping units - item selection within a group or department.
A file of past activities/notes for next season's activity. Should
be checked 30 days in advance of activity.
Number of times your original inventory is sold, put back in stock
and sold again.
Planned turnover necessary to produce a good return on each dollar
invested. Minimum goal should be two (2) turns on a 4 month operation,
three (3) turns on a 6 month operation and four (4) turns on an
open all year operation.
A non-essential but desirable item. (Impulse)
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