Commodity

Merchandise is a collective name for the converted traders physical assets. In the broadest sense come assets as revenue objects of any kind into consideration, raw materials, agricultural products, capital goods, consumer goods, foreign exchange and securities. In a narrower sense - and prevalent - the concept of trading goods is limited to the business purpose of trading companies. The products in the industrial products and agricultural and horticultural products are sold commercially to articles.

Definition of Terms

The characteristic of merchandise is that there are material assets is (about industrial products or agricultural products ) that are sold usually as they were purchased, ie without substantial working or processing. Although from a retail company no viable production steps are carried out on the goods, the services provided by commercial enterprises in the division of labor, transport industry economic activity is " no less productive than any other economic activity that serves the needs'. Only the services provided by commercial enterprises the goods to their consumption or for the ultimate use completes the value chain. When manufacturing companies all of the goods produced by him is called a production program or product range, the commercial enterprise, ie the totality of the information collected by him of goods or products range.

Examples

Mineral oil ( sold in units of barrels ), Wheat, but also pork bellies or PCs.

In a manufacturing company may also goes trading goods in the product if, for example, in the production of cabinets of wood raw material, the auxiliary fabric glue and possibly a fuel such as machine oil purchased from wholesale companies. Merchandise subject at all stages of the free formation of prices.

Typing of the merchandise after Quotation

The entire range of commercial operation is divided into various products categories (" assortment pyramid "). In terms of low-price policy is differentiated by key articles Zugartikeln and special offers.

See also: Product group category and mixed calculation

Key articles

Key products are the products whose price is perceived particularly sensitive of the customer and be taken to the benchmark for the entire range ( Irradiationseffekt ). Studies have shown that consumer prices 20 to 30 articles of daily use know on average quite accurate. Key products are suitable for permanent use as a low- price items. Due to the sensitive price perception consumers react to these articles but also very price elastic, so that even small price differences are perceived positively or negatively to the competition. For these reasons, almost all retailers are offering these products at the most favorable prices, sometimes even below cost prices.

Key products, almost form long-term not to cover costs contributing subset of the requirement of Article.

Zugartikel / Article profiling

Train or profiling article ( " loss leader " ) are also articles about the want to stand out a trading company of the direct competitors. However, they are more likely to short-term increases in customer traffic and / or for short-term promotion of complementary articles. This article category usually requires a wide range and is characterized by high quality and relatively low prices. Zugartikel are often " below cost " calculated.

Want, for example, a company in the food trade on the range of fruit and vegetables profile, it will offer a particularly large variety of fruit and vegetables, they present complex and appealing ( for example Wasserbesprenklung and large mirrors ) eighth and at the same time on high quality and low prices.

The aim of the Zugartikelstrategie is to encourage customers through this special offer to purchase, the additional purchases will trigger. As far as the customers then buy not only fruits and vegetables, this Zugartikel be cross-subsidized by other products as it groups (see also mixed calculation ).

Special / impulse items / seasonal items

These products are characterized by a limited period to which they can be purchased in the retailer, from. Depending on the type pricing scarce ( special offer), Normal or High ( seasonal items ) can be. Priced lower special rate are primarily a sales effect, less an acquisition effect for the entire range. Impulse items are low calculated and psycho tactically placed items (for example, in the gripping zone of shelves or in the checkout area ), the impulsive, ie be purchased without prior planning on entering the store. Seasonal items are especially popular at certain times, such as fashion items or typical festive articles. Basically, they do not require low pricing due to little more pronounced price elasticity of demand or for reasons of prestige ( Geschenke! ). To calculate and control of outlets in particular this article the diffusion model called is used in the early deviations from the planned sales volume are determined by the Gaussian normal distribution.

Compensation items

Under-compensation items refers to all products whose pricing should lead to a high, compensating contribution margin. They are known as " balance beam " complementary articles on key and Zugartikeln relatively low price elasticity and price transparency, ie articles, compared to their prices, the customers show up preisindifferent or where they even respond to price increases with increase in demand.

Supplementary Article

These products category includes items that do not belong to the " normal expected " (obligatory ) Offer of the trading company. Similar to the profiling articles can also supplement products used to differentiate from the competition. Important for these articles is a normal to above-average calculation to achieve gross margins that are of the corresponding higher range performance requirements. In addition, high-priced products quality and / or prestige effects can trigger: If a high price viewed as a social part quality, it generates positive demand behavior.

A typical example of Supplementary Article is clothing in grocery retail stores.

Requirement of Article

Mandatory items are all the items that consumers expect in the particular type of operation of the trading company. This is classic food retailing, for example, the food or the department store clothing items. Apart from the key articles that are a subset of this group, these articles represent the quasi in the core range and carry on normal to high pricing significantly to the company's results. As far as it concerns with the mandatory articles to well-known brand goods or goods for daily use, so-called Eckartikel, the thresholds of willingness to buy can already be influenced by smallest price differences.