The long-term responsibilities deal with the buyers' actions in the wholesale market, and their responsibilities with the store prior to approaching the wholesale merchants. Elements of this part of the buyers' responsibilities include budgeting, negotiation, anticipation of demand levels, timing of purchase and deliveries, and maintaining knowledge of the market.
Before the buyer can enter the wholesale market to buy a particular product, they must analyze past sales records to determine the budget (open-to-buy dollars) needed for purchases, the physical capacity of the store(s), and the appropriate cost of the product the buyer is to purchase. Together with an immediate superior, the buyer determines the amount of funds necessary to make a profitable purchase. The upper management of the company combines and analyzes the projections of all buyers, and in light of company objectives assigns each buyer a budget. This budget is typically very rigid, but can be altered should drastic changes in the market occur. ("I know these nose mittens will sell like crazy. Can I have an extra couple thousand bucks?")
Buyers must develop a sense of anticipation of the trends in their area of specialty. Since consumer preferences tend to be unpredictable, complete knowledge of the consumers and their behavior is important. When anticipating the direction a market will take, it is General orientation to retailing and to the procedures followed by the particular store. Assigned to a buyer and then a group manager in order to gain exposure to both the merchandising and managerial elements of the industry. A learning position with a minimal level of responsibility. Duration: six to sixteen weeks, although training will continue after the first promotion and title change.
Reports to and works with a buyer. Responsibilities include assuring that the correct merchandise is received, marked, and moved to the selling floor in a timely manner. Informs the department manager of all price changes, temporary markups and markdowns, and distributes various promotional materials. Works with the buyer on developing and executing assortment plans and may accompany the buyer on buying trips. Duration: one to two years.
Supervises all buyers within a division, for example, hard goods. Guides the buyers in assortment planning, merchandising, promotional and financial planning. Reports to general merchandise manager.
Responsible for the merchandising efforts for a group of stores. Supervises divisional merchandise managers. Reports to the president.
No longer needs to use discount on merchandise. Equally important to know the wholesale merchants and their behavior. Learning to "read" the actions of wholesalers can help a buyer determine the course of the entire industry. Bargaining with the merchants demands an assertive and knowledgeable approach. Alteration of all the aspects of the purchase-price, quantity, color, delivery terms, and so forth-is used to reach a satisfactory compromise. The flexibility associated with the bargaining system requires that the buyer know exactly the minimum order needed, the maximum price possible, acceptable delivery dates, which merchants are carrying similar merchandise, as well as other constraints.
The travel opportunities are extensive: Buyers usually travel four or five times a year for three or four days at a time, depending upon their product responsibilities and geographic area. Buyers have a great deal of pressure on them during buying trips, making travel less than a paid vacation.
Two main types of risk are associated with the buying function. First, the buyer may interpret the market incorrectly and purchase an item that doesn't sell enough to generate a profit. ("I really thought those nose mittens would sell…") Second, the buyer may not purchase an item that has great sales potential. Both of these errors could be disastrous to the overall profit margin attained by the buyer.
The buyer has almost total authority over what is purchased, within the constraints established by the store management. With that authority goes total responsibility for the selections made. The basis for acquiring open-to-buy dollars is the past performance of the buyer in the market. Success in previous years facilitates drawing more open-to-buy dollars, which, in turn, creates more opportunities to increase the buyer's profit contribution. "Success" is ultimately dependent upon actual sales resulting from purchases made six months to a year earlier. Thus, a great deal of importance is placed upon the preparation for, and execution of, the trips made into the wholesale marketplace.
The short-term aspect of the buyer's responsibilities involves working within the store to provide the best presentation of the merchandise purchased in the wholesale market. Here the buyer's actions either achieve high sales volume or reflect negatively on the buyer. Some of the elements important in this area are merchandising, promotion, training, and awareness of changes as they occur in the retail marketplace.
After the purchases in the wholesale market are accomplished, the buyer must concentrate on the consumer reaction to the items in the retail marketplace. Close watch must be kept to ensure sales are going as planned. Should the actual sales pattern begin to vary from the projection, action must be taken to correct the situation. Depending upon whether the sales are lower or higher than predicted, the buyer may consider a number of corrective measures, such as price changes, reorders, order cancellations, and so forth. Analysis of the reasons why the sales were off target is then undertaken to prevent similar mistakes in the future.
A knowledge of merchandising techniques regarding display, promotion, timing, assortment, and distribution is required of the buyer in order to provide the greatest sales opportunity possible. Part of these responsibilities entails directing the sales force in the proper way to sell the item, the facets to point out to the customer, the manner that should be used to promote the products, and so forth.
The buyer works closely with the advertising department or agency to coordinate the promotions with current sales volume activity. The advertising personnel get feedback from the buyer to guide their promotional schedules and plans. The buyer is responsible for identifying those items in need of additional help from the advertising department. Aside from the direct responsibilities for generating profit for the firm, buyers are also responsible for training assistant buyers and trainees under their authority. Many firms provide guidelines for buyers to follow to assure that their subordinates receive the appropriate experience.
