Retail Product Label Information

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  Product Knowledge

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  An effective salesperson should be able to communicate well with customers.

  Sales staff must 'know the product' they are selling to do their job well. They should be able to answer questions, such as:

  • What is special about this product compared with other similar products?
  • How does it work?
  • What are the main materials in the product?
  • Does it include a warranty?
  • Are there any safety requirements to be aware of?
  • Can these be dry cleaned?
  • What sort of batteries does this take?
  • How should it be stored?

  If questions like this cannot be answered, the salesperson's ability to sell the product is limited.

  You need to familiarise yourself with merchandise, get information from sources such as:

  • product labels.
  • brochures.
  • colleagues.
  • the Internet.

  It is important to understand the following words and meanings:

  Word	Meaning
  Warranty	A written guarantee given to the purchaser by a company or manufacturer stating that a product is reliable and free from known defects, and that the seller will, without charge, repair or replace defective parts within a given time limit and under certain conditions.
  Features and benefits	The features of a product are its unique characteristics such as weight, size and colour. The benefits are how these unique characteristics can help a person or business.
  Safety requirements	These inform the customer on how best to use the product to avoid injury or serious accidents.
  Storage requirements	These provide information on the best way to store the product so that it does not get damaged or contaminated.
  Care and handling	This informs the customer on how to look after the product to keep it in good condition.
  Shelf life/Use by date	This informs the customer how long the product will be suitable for use.

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  Matching Goods to Price Tags

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  Managers of retail outlets expect sales staff to be aware of the prices of products being sold.

  Customers expect sales staff to be able to provide them with a quick response when they request the price of an item.

  As well as having good product knowledge sales staff must:

  • know the stock and prices.
  • know the price tag system in their store.
  • know the current 'specials'.

  This knowledge is important in order to:

  • prevent items being sold at lower prices because shoppers have swapped price tags, putting a lower price tag on a more expensive item.
  • minimise loss and theft through shoplifting.

  A price tag:

  • is a ticket attached to an item being sold.
  • tells the customer the price of something.
  • may come in many different shapes, colours and sizes.
  • is distinct to different shops.

  Some price tags may:

  • just show the cost of an item.
  • show the price and give a brief description of the item.
  • give a description of the product, a product code, the price and a barcode with numbers.

  Barcodes are:

  • swiped electronically by the sales person at the checkout and the price appears on a screen.
  • printed codes made up of a series of lines which identify an item and its price.
  • scanned by barcode scanners and computerised cash registers.

  Barcode readings give information like prices and stock levels.

  If a scan does not work the sales person can enter the numbers below the barcode to obtain the price.

  QR Codes can be scanned using mobile phone devices and customers can learn more about the product.

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  Ordering and Receiving Stock

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  Ordering Stock

  Businesses order goods from suppliers. An order form or purchase order shows:

  • the name and address of the business making the order.
  • the supplier's name and address.
  • a description of the goods ordered
  • the product codes and quantities.
  • the names of the persons ordering and authorising the order.

  Receiving Stock

  A delivery docket is a document received with the goods.

  A delivery docket will show the:

  • date.
  • the product.
  • the quantity of each product.
  • the product code.

  The person receiving the goods signs off on this document.

  It is important to check the goods for:

  • quantity.
  • quality.

  Some businesses:

  • check the goods directly against the order form.
  • have a delivery checklist to record details.

  Quantity checking involves counting:

  • the number of whole cartons; these can be counted unopened.
  • the contents of part cartons.

  When there is a difference between the number ordered and the number received the difference should be recorded in the Backorder column.

  Backorders:

  • will be delivered at a later date.
  • become the new order.

  Quality is checked by:

  • checking the USE BY dates.
  • opening damaged cartons and checking for spoilt goods and breakages.
  • opening cartons that have been tampered with, and checking the contents.

  The supplier must be notified of any discrepancies in quantity delivered and quality of goods.

  Summary

  • Put in an order because stock levels are low.
  • Stock arrives with delivery docket.
  • Delivery checklist - quantity and quality checked.
  • Backorder - missing items recorded.
  • Next order includes missing items on backorder.

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  Stocktake and Stock Rotation

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  Stocktake

  A stocktake is the counting of stock held by a business at a particular time.

  The efficient operation of a sales business depends on keeping accurate records of stock so that merchandise is always available for sales.

  Different businesses will have different policies for stocktaking. These policies should be followed by employees.

  Some businesses do a stocktake as often as once a week; others may do a stocktake every 6 or 12 months. The goods in stock are recorded in an inventory.

  Stock Rotation

  Stock rotation means that stock is moved around so that older stock is displayed for sale before the newer stock. This ensures that the store always has clean, up-to-date merchandise to sell to customers, and in the case of food items, that the products are fresh.

  FIFO = First In First Out

  Customers cannot buy merchandise from the store room, so the shelves must be refilled regularly.

  Employees must follow the FIFO system of stock rotation.

  This means that the goods that are delivered to the store first must also be the first to be sold to the customer.

  All delivery dates must be checked before stock is placed onto shelves for sales.

  Remember FIFO applies to all items, not just food or perishables.

  Some of the terms used in connection with stocktake and stock rotation procedures are very similar in meaning.

  WORD	MEANING
  goods	Items delivered and held for sale. For example: The supplier delivers goods to the store once a week.
  products	Items offered for sale. For example: The store provides a variety of products.
  stock	Goods kept by a business for supply to customers. For example: The store has stock on display and extra stock in the storeroom.
  stocktake	The counting of stock held by a business. For example: The Bottle Shop does a stocktake once a month.
  inventory	A complete list of the quantity of goods in stock. For example: An inventory is made when there is a stocktake.
  merchandise	Goods available for sale. For example: Good businesses rely on having good merchandise.

• Say It

  There are 2 parts in this section.

  1. The Glossary

  The glossary lists the more difficult words related to the topic in alphabetical order. The glossary also gives the meaning for each word.

  2. Look, Cover, Write, Check!

  This activity gives you practice at remembering and writing the words from the glossary.

• The Glossary

• Do It

  Being an effective salesperson is about communicating with customers. It involves 'knowing the product' and providing customers with the information they need before making a purchase.

  Sales staff must also be aware of the store's products, the prices and pricing systems. This is important for the maintenance of stock levels, theft minimisation and the efficient operation of the store.

  Different businesses have different methods for checking and rotating stock, and stocktaking. Employees need to have an understanding of the policies and procedures and follow them carefully.

  Jump to Activities

• Do It: Applying Product Knowledge

  

• Do It: Matching Goods to Price Tags

  

• Do It: Ordering and Receiving Stock

  

• Do It: Stocktake and Stock Rotation Procedures

  

Check It