Author Question: A fashion retailer can increase sales and traffic by offering its customers credit. However, any ... (Read 107 times)

audie · **on:** Sep 11, 2018

A fashion retailer can increase sales and traffic by offering its customers credit. However, any retailer that allows customers to buy on credit must have a sound credit policy The Entrepreneur.com web site offers many suggestions for growing businesses, including suggestions on how to establish a credit policy. Read the guidelines to answer the following questions.
What four things does a well-thought-out credit policy accomplish?
What is the first step a fashion retailer should take to establish a smart credit policy? Why?
How might a liberal credit policy sound? A conservative one? If you managed a fashion boutique, which type of credit policy do you think you would offer your customers? Why?

Question 2

Negotiating your salary can be the toughest part of your job search, especially in a tough job market. Effective salary negotiation will create a strong foundation for your job experience, both financially and mentally. Visit the Smart Job Guides web site to answer the questions below.
What educational background do you need to be a fashion buyer?
What are some personal characteristics required to be a successful fashion buyer?
What kind of work experience do you need to become a fashion buyer?

qytan · **Reply #1 on:** Sep 11, 2018

Answer to Question 1

A well-thought-out credit policy (1) avoids both bad debts and hard feelings; (2) standardizes credit procedures, providing employees with clear and consistent directions; (3) demonstrates to employees and customers that the company is serious about managing credit; and (4) helps the business owner define how credit fits into the overall sales and marketing plan. A fashion retailer should begin by investigating the way competitors handle credit. If competitors offer better terms, they have an advantage. A retailer must meet their competitors credit terms to attract customers.

A liberal policy might be: ''Our credit policy is to make every reasonable effort to extend credit to all customers recommended by sales management, providing a suitable credit basis can be developed.'' In contrast, a conservative policy might say: ''Our company has a strict credit policy, and credit lines will be extended only to the most credit-worthy accounts. New customers who fail to meet our credit criteria will need to purchase using cash-on-delivery terms until they establish their ability and willingness to pay on our terms.

Answer to Question 2

A high school diploma as well as a community college degree in retail, merchandising, or fashion merchandising or a university degree in a field such as business is usually required.
Fashion buyers must be decisive and highly organized and must enjoy challenge and a fast-paced life. The work is suited to confident, outgoing people. Fashion buyers must be comfortable negotiating with suppliers, dealing with staff in the stores, and solving problems. They must be willing to travel extensively. Fashion buyers must also be analytical, well organized, and good at basic arithmetic. Computer abilities are an important asset. The job also requires a high degree of honesty and integrity. Needless to say, a love and understanding of fashion is also required.
One to seven years of experience in a sales supervisory or sales staff occupation is usually required, including a one- to two-year in-store training program; this program usually consists of a mixture of hands-on selling and sales management as well as in-class studies.