THE MISSING 1 RUPEE
The Missing 1 Rupee What happens to the 1 Rupee that we leave at cash counters for our purchases? Have you ever wondered? Have a look around you. What did you observe? I can safely assume that most of them are products that are sold to you in numerous ways through numerous channels. The pen you write, the food you eat, the bed you sleep, the car you drive, everything is a product. Made from different materials, imported from different parts of the world and sold to you through different channels, all of them made way into your life. Even though they look, feel and serve differently almost all of them a similarity. It is the similarity of pricing. What is the most common pricing format that you have seen? I can bet safely that the 99 pricing is the most common pricing you might have seen. Be it in rupees, dollars or pound, anywhere in the world it is the same. The reason for corporate using this is based on Psychology. Psychological pricing: “Psychological Pricing” is a pricing/marketing strategy based on the theory that certain prices have a bigger psychological impact on the customer than others. All the offers that MNC’s give to their customers are carefully planned Psychological pricing strategies. Buy 3 Get 2, 40% and Additional 10 % are some examples of pricing strategies. The impact of psychological pricing has serious impacts on product performance. Consider this example. Americas A&W restaurant chain created a new hamburger to compete with the Quarter pounder of McDonald’s. The new product was the Third-pound burger; it has better taste and more meat (0.33 Pound compared to 0.25 Pound of McDonald’s) at the same price of a quarter pounder. However, once the product got released, it didn’t reach the expected response and sales were plummeting even with a lavish television and radio marketing campaign. The reason being customer perceived 1/3rd to be lesser than 1/4th because in simple numerical 3 is less than 4. Now coming back to the point why is pricing ends with a “99.” The strategy at play is “Charm Pricing”, one of the many psychological pricing techniques. According to a 2005 research by Thomas and Morwitz called “the left-digit effect in price cognition”, nine-ending are perceived to be smaller than a price one cent higher if the left-most digit changes to a lower level. In simple terms customers perceive 3.99 to be far lower than 4.00 even though the difference between them is 0.01. Customers relate more to the left ended digit as we read from left to right in general. Customers tend to perceive the price as less compared to what they thought of and hence will select more. Customer may or may not buy the additional product but at the least, there is a chance for the customer to consider looking at other options. This ultimately will result in an increase in Average Basket Value. Now, what happens to all the cash change that customers will leave at the counter? I have seen threads online which answer this question saying that the amount would be unaccounted and would go directly into the pockets of the retailer. Some even calculated these amounts into crores which would be unaccounted. For Example, if a product is priced at Rs 99 and let’s say 100 people bought it, then the amount would be Rs 100 per day per store. And for a retail chain of 500 stores, the amount would be Rs 50,000 per day. This would translate to Rs 15 Lakhs per month and Rs 1.8 Crore per year. That’s a lot of money unaccounted for. But will it really happen? Firstly, thanks to the digital era and the increase in mobile penetration customers now are increasingly paying money through Credit/ Debit cards, E-Wallets. So there is no question of leftover cash change in these cases. Secondly, customers won’t buy a single product and most of the transactions result to bills with a 6 or 7 at the end. Customers might leave 1 rupee but that is not the case when the value increases. Also, the converse is also true and when the transaction value ends with 1 or a 2 at the end, retailers won’t force you to pay (They will take the money if you give though). Still, there is a considerable amount of unaccounted money at every store. To know what happens to this amount we should know how cash settlement happens at every retailer. For most of the MNC’s/ Corporate retailers, cash management is a daily activity. Cash sale for the day is deposited in the banks the following day. As far as the retailer is concerned the deposited value should match with the Point of Sale cash value in the system and it is the responsibility of the Cashier/ Store Manager to ensure that both the POS cash value and deposited cash value matched. This means that the additional value enters the pockets of Cashiers/ Store managers. Is that so? Billing and cash settlement are tedious jobs. Employees who work at cash counters often make mistakes in delivering the cash change. Imagine the scenario when a customer is given short change, he/ she will immediately rectify and will come back to collect. But what if the customer is given excess change? Will he/she will return. It is also hard to identify the customer to whom the excess cash is given out of all the transactions happened that day. The cashier/ Store manager will know about it only at the day end when he/she is about to settle the day cash sale. And the only option left for him/her is to put money out of their own pocket. In simple terms, Cashier/ SM would save Rs 20-30 per day but the loss would be in hundreds due to cash mismanagement. Let’s say that these mistakes are also not happening and the money is still in the desk. Then it would be used as petty cash expenses to the store staff. Be it the snacks they eat or the juices they drink. So the missing 1 rupee will end up as food for underpaid sales staff who work hard for 12 hours a day. So, next time when you leave 1 rupee at the cash counter, feel good about it. References: https://www.entrepreneur.com/article/279464 https://www.quora.com/Why-do-retailers-add-%E2%80%9899%E2%80%99-to-the-end-of-their-pricing-1-99-399-00-etc https://gizmodo.com/whats-bigger-1-3-pound-burgers-or-1-4-pound-burgers-1611118517 https://www.quora.com/What-is-the-reason-behind-keeping-the-price-of-products-ending-with-999-99-9
SPECTRUM OF BUSINESS ACTIVITIES with test questions
Content of BVoc Retail Management. It includes concept of business, nature and characteristics of business, industry and its types. It also includes concept of commerce, role of commerce, trade and its types, auxiliaries to trade. Moreover it also has inter-relationship between industry, commerce and trade. IT ALSO INCLUDES SUMMARY AND TEST QUESTIONS.
BVOC KINDS OF COMPANIES Retail Management
It consists of:- • Company Limited by Share and Guarantee. • Private Company and Public Company • One Person Company Holding and Subsidiary Companies Associate Company Small Company • Dormant Company • Foreign Company Govertiment Company Association not for Profit • Producer Company Illegal Association A company may be incorporated by either a special Act of the legislature or under the Indian Companies Act, 2013. Accordingly, a company may be: (1) Statutory Company, or (2) Registered Company.
Bvoc COMPANY FORMATION
It explains promotion and incorporation. BVOC RETAIL MANAGEMENT Retail Management refers to all the processes which help the customers to procure the desired merchandise from the retail stores for their end use. The term "retailer" is typically applied where a service provider fills the small orders of many individuals, who are end-users, rather than large orders of a small number of wholesale, corporate or government clientele. Shopping generally refers to the act of buying products. Sometimes this is done to obtain final goods, including necessities such as food and clothing; sometimes it takes place as a recreational activity. Recreational shopping often involves window shopping and browsing: it does not always result in a purchase.
Articles of association Bvoc retail managemnet
IT IS ABOUT BINDING EFFECTS AND ALTERATION OF ARTICLES. ALSO ABOUT DOCTRINE OF CONSTRUCTIVE NOTICE AND OF INDOOR MANAGEMENT. In corporate governance, a company's articles of association is a document which, along with the memorandum of association form the company's constitution, defines the responsibilities of the directors, the kind of business to be undertaken, and the means by which the shareholders exert control over the board of directors.
SHAREHOLDERS MEETING Bvoc Retail Management
IT CONSISTS OF AGM AND EGM. An annual general meeting (AGM, also known as the annual meeting) is a meeting of the general membership of an organization. These organizations include membership associations and companies with shareholders. An extraordinary general meeting, commonly abbreviated as EGM, is a meeting of members of an organisation, shareholders of a company, or employees of an official body, which occurs at an irregular time.
Retail Management Question Bank
RASCI question bank B.voc Retail Management RASCI is a not-for-profit, independent public limited organisation established under Section 25 of the Companies Act. We have been funded by the Government of India along with Equity participation from Retailer’s Association of India, Reliance Retail Ltd., Future Retail India Ltd., Shoppers Stop Ltd., Globus Stores (P) Ltd., Trent Ltd., Infiniti Retail Ltd. and Connaught Plaza Restaurant (P) Ltd. to function as the Apex Skill Development Council for the Retail Industry. We represent the retail industry in India. RASCI is a collaborative and comprehensive source of retail expertise and independent advice for industry, training organizations, educational institutions, certifying bodies, employees, students or jobseekers about skills development in the retail industry.
RETAIL STORE OPERATIONS AND PROFITABILITY MANAGEMENT
IT CONSISTS OF STUDY MATERIAL LIKE NOTES, READINGS AND PRACTICE QUESTIONS. THE TOPIC OF THE CONTENT IS RETAIL STORE OPERATIONS AND PROFITABILITY MANAGEMENT. IT CAN BE USED FOR B VOC CURRICULUM. Retail operations is the term used to describe all the activities that keep the store functioning well. It includes people management, supply chain, store layout, cash operations, physical inventory, master data management, promotions and pricing, and so on.