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51-407: Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial , commercial, institutional or other professional business users; or to other wholesalers ( wholesale businesses ) and related subordinated services. In general, it is the sale of goods in bulk to anyone, either a person or an organization, other than the end consumer of that merchandise. Wholesaling

102-504: A swap rate to a zero-rate through bootstrapping ) but an annually-compounded rate (for example if the benchmark is a US Treasury bond with annual coupons) and one only has its yield to maturity , one would use an annually-compounded discount factor: However, when operating in a bank, where the amount the bank can lend (and therefore get interest) is linked to the value of its assets (including accrued interest ), traders usually use daily compounding to discount cash flows. Indeed, even if

153-423: A bank account and earn interest, or invest in other assets. Hence we must discount future payments. Consider a payment F that is to be made t years in the future, we calculate the present value as Suppose that we wanted to find the present value, denoted PV of $ 100 that will be received in five years time. If the interest rate r is 12% per year then The discount rate which is used in financial calculations

204-449: A change in the market. A beta higher than 1 means that a change in share price is exaggerated compared to the rest of shares in the same market. A beta less than 1 means that the share is stable and not very responsive to changes in the market. Less than 0 means that a share is moving in the opposite direction from the rest of the shares in the same market. 3. Equity market risk premium : The return on investment that investors require above

255-681: A completely unrelated item can sell that item. An example is Harley-Davidson branded clothing. Idol goods or idol merchandise are various types of merchandise related to celebrities ("idols"). Consumption of idol goods is a significant part of the idol fandom. Such goods create and reinforce a more physical connection between fans and celebrities. Examples of common idol goods include stationery items, compact discs , photo albums , calendars, telephone cards, T-shirts (see also concert T-shirt ), key chains, lapel pins, and various other goods. Virtual idols can be considered an idol good themselves as they can be bought and sold. An idol can have

306-401: A larger portion of companies' annual budgets, its appearance in the hands of unintended recipients increases. However, this has been found to generate a positive outcome for companies without any additional effort after producing the merchandise because of the concept of silent persuasion . The concept theorizes that even without the acknowledgement of the brand being promoted on the merchandise,

357-424: A number of organizations that supply merchandising services to support retail outlets with general stock replenishment and merchandising support in new stores. By doing this, retail stores have been able to substantially reduce the number of employees needed to run the store. While stocking shelves and building displays is often done when the product is delivered, it is increasingly a separate activity from delivering

408-411: A person can earn a return on money invested over some period of time, most economic and financial models assume the discount yield is the same as the rate of return the person could receive by investing this money elsewhere (in assets of similar risk ) over the given period of time covered by the delay in payment. The concept is associated with the opportunity cost of not having use of the money for

459-418: A similar investment asset means the future value of P is P ( 1 + r ) t {\displaystyle P(1+r)^{t}} , and the discount can be calculated as We wish to calculate the present value , also known as the "discounted value" of a payment. Note that a payment made in the future is worth less than the same payment made today which could immediately be deposited into

510-403: A standard rate that cannot be less than 15%. Countries like Hungary , Croatia , Denmark , and Sweden have higher standard VAT rates, while Luxembourg , Malta , Cyprus , Germany , and Romania have lower rates. The alternative to selling wholesale to distributors or retailers is to sell retail either through company-owned stores or online . Advantages include receiving a larger slice of

561-501: A tremendous effect on sales of merchandise, an example being David Beckham upon his arrival at Real Madrid in 2003, with an Adidas spokesman stating, "Put Beckham's name on any product and Real Madrid didn't stop selling". In the 1960s The Beatles were pioneers in conventional retailing in music, setting up their own retail store in London, Apple Boutique, that sold Beatles merchandise. Discounting In finance , discounting

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612-434: Is a difference between the "future value" of a payment and the "present value" of the same payment. The rate of return on investment should be the dominant factor in evaluating the market's assessment of the difference between the future value and the present value of a payment; and it is the market's assessment that counts the most. Therefore, the "discount yield", which is predetermined by a related return on investment that

663-487: Is a mechanism in which a debtor obtains the right to delay payments to a creditor , for a defined period of time, in exchange for a charge or fee . Essentially, the party that owes money in the present purchases the right to delay the payment until some future date. This transaction is based on the fact that most people prefer current interest to delayed interest because of mortality effects, impatience effects, and salience effects. The discount , or charge ,

714-542: Is also promoted). Mother's Day and Father's Day are next, with graduation gifts (typically small consumer electronics like digital cameras ) often being marketed as "dads and grads" in June (though most college semesters end in May; the grads portion usually refers to high school graduation, which occurs one to two weeks after Father's Day in many U.S. states). Summer merchandise is next, including patriotic-themed products with

765-996: Is buying goods in bulk quantity, usually directly from the manufacturer or source, at a discounted rate. The retailer then sells the goods to the end consumer at a higher price making a profit. According to the United Nations Statistics Division , wholesale is the resale of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently physically assemble, sort, and grade goods in large lots, break-bulk , repack, and redistribute in smaller lots. While wholesalers of most products usually operate from independent premises, wholesale marketing for foodstuffs can take place at specific wholesale markets where all traders are congregated . Traditionally, wholesalers were closer to

816-479: Is common especially with the science fiction and horror genres . Occasionally, shows which were intended more for children find a following among adults (for example, Gundam model kits ). An early example of this phenomenon was the cartoon character Little Lulu, who became licensed to products for adults, such as Kleenex facial tissue. Sometimes a brand of non-media products can achieve enough recognition and respect that simply putting its name or images on

867-612: Is especially prevalent in is clothing or fashion retail in which potential sizing issues can be a large factor in a customer refraining from purchasing an item online. Moreover, accurately portraying the texture and quality of a product in all areas of retail, not limited to fashion, remains a challenge in the field of online merchandising as the lack thereof has been proven to result in more indecision for consumers. Because of this, many companies look for ways to improve their online shopping options to make browsing merchandise as similar to an in-store experience as possible while keeping up with

918-404: Is found in the different markets in the financial sector, is what is used within the time-value-of-money calculations to determine the "discount" required to delay payment of a financial liability for a given period of time. If we consider the value of the original payment presently due to be P , and the debtor wants to delay the payment for t years, then a market rate of return denoted r on

969-581: Is on final closeout and overstock of school supplies is marked-down some as well, and Halloween (and often even more of the Christmas) merchandise is appearing. As the Halloween decorations and costumes dwindle in October, Christmas is already being pushed on consumers, and by the day after Halloween retailers are going full-force with advertising, even though the "official" season does not start until

1020-507: Is the act of contracting to purchase real property, and assigning that contract to an investor. Often, in the United States, wholesalers are not required to charge their buyers sales tax , if the buyer has a resale license in the state the wholesaler is located. Out-of-state buyers are not charged sale tax by wholesalers. In China , wholesalers are subject to a Value-Added Tax (VAT) of either 9% or 13% on imported goods, depending on

1071-622: Is the difference between the original amount owed in the present and the amount that has to be paid in the future to settle the debt . The discount is usually associated with a discount rate , which is also called the discount yield . The discount yield is the proportional share of the initial amount owed (initial liability) that must be paid to delay payment for 1 year. Discount yield = Charge to delay payment for 1 year debt liability {\displaystyle {\text{Discount yield}}={\frac {\text{Charge to delay payment for 1 year}}{\text{debt liability}}}} Since

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1122-523: Is usually chosen to be equal to the cost of capital . The cost of capital, in a financial market equilibrium, will be the same as the market rate of return on the financial asset mixture the firm uses to finance capital investment. Some adjustment may be made to the discount rate to take account of risks associated with uncertain cash flows, with other developments. The discount rates typically applied to different types of companies show significant differences: The higher discount rate for start-ups reflects

1173-489: The Patent Office in London, making Peter the oldest licensed fictional character. Erica Wagner of The Times states, "Beatrix Potter was the first to recognise that content—as we now call the stuff that makes up a book or a film—was only the beginning. In 1903, Peter hopped outside his pages to become a patented soft toy, which gave him the distinction of being not only Mr. McGregor‘s mortal enemy, but also becoming

1224-416: The efficient (financial) market hypothesis . The person delaying the payment of the current liability is essentially compensating the person to whom he/she owes money for the lost revenue that could be earned from an investment during the time period covered by the delay in payment. Accordingly, it is the relevant "discount yield" that determines the "discount", and not the other way around. As indicated,

1275-480: The supply chain , merchandising is the practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays. While this used to be done exclusively by the stores' employees, many retailers have found substantial savings in requiring it to be done by the manufacturer, vendor, or wholesaler that provides the products to the retail store. In the United Kingdom, there are

1326-421: The "discount yield" must be used within the same compounding mechanism to negotiate an increase in the size of the "discount" whenever the time period of the payment is delayed or extended. The "discount rate" is the rate at which the "discount" must grow as the delay in payment is extended. This fact is directly tied into the time value of money and its calculations. The "time value of money" indicates there

1377-666: The American flag, placed on the market by Memorial Day in preparation for Independence Day (with Flag Day in between). By July, back-to-school is on the shelves and autumn merchandise is already arriving, and at some arts and crafts stores, Christmas decorations . (Often, a Christmas in July celebration is held around this time.) The back-to-school market is promoted heavily in August, when there are no holidays to promote. By September, particularly after Labor Day , summer merchandise

1428-490: The United States the basic retail cycle begins in early January with merchandise for Valentine's Day , which is not until mid-February. Presidents' Day sales are held shortly thereafter. Following this, Easter is the major holiday, while springtime clothing and garden-related merchandise is already arriving at stores, often as early as mid-winter (toward the beginning of this section, St. Patrick's Day merchandise, including green items and products pertaining to Irish culture,

1479-414: The beverage and baked goods industries, their merchandisers are often the single largest employee group within the company. For nationwide branded goods manufacturers such as The Coca-Cola Company and PepsiCo , their respective merchandiser work forces number in the thousands. This concept can be linked to marketing channels which bring products from the possession of the producer into the possession of

1530-471: The consumer. In recent decades, these methods utilized by companies to provide merchandise have expanded from in-person only, to online-only for some stores during the COVID-19 pandemic , to a mixture of both, sometimes referred to as omnichannel retailing . The combination of both options for consumers provides a favorable encounter with retailers that makes them more likely to purchase products and return to

1581-473: The currency is ACT/360, in case of currencies such as United States dollar , euro , Japanese yen ), with r the zero-rate and T the time to cash flow in years: or, in case the market convention for the currency being discounted is ACT/365 ( AUD , CAD , GBP ): Sometimes, for manual calculation, the continuously-compounded hypothesis is a close-enough approximation of the daily-compounding hypothesis, and makes calculation easier (even though its application

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1632-485: The day after Thanksgiving . Christmas clearance sales begin even before Christmas at many retailers, though others begin on the day after Christmas and continue on at least until New Year's Day but sometimes as far out as February. The trend of stocking stores with merchandise many weeks prior to the actual event targeted and the period of consumption can be described by the term advance selling. Although it may seem disadvantageous for sellers, advance selling can have

1683-420: The decisions about which products should be presented to which customers at what time. Often in a retail setting, creatively tying in related products or accessories is a great way to entice consumers to purchase more. Merchandising helps to understand the ordinary dating notation for the terms of payment of an invoice. Codified discounting solves pricing problems including markups and markdowns. It helps to find

1734-436: The first licensed character". Merchandising for children is most prominently seen in connection with films and videogames , usually those in current release and with television shows oriented towards children. Merchandising, especially in connection with child-oriented films, TV shows and literature, often consists of toys made in the likeness of the show or book's characters (action figures) or items which they use. This

1785-405: The growing online market. In marketing , one of the definitions of merchandising is the practice in which the brand or image from one product or service is used to sell another. Trademarked brand names, logos, or character images are licensed to manufacturers of products such as toys or clothing, which then make items in or emblazoned with the image of the license, hoping they'll sell better than

1836-464: The individual utilizing it is affected in their future actions as a consumer. Furthermore, a 2019 study found that the tactile usage of the products produced a greater response in consumers than a solely visual interaction with a product such as posters. This study concluded that considering allotting a greater sum of money to smaller pieces of merchandising that promote a brand would benefit newer companies that have yet to become quickly recognizable. In

1887-413: The interest of the bonds it holds (for example) is paid semi-annually, the value of its book of bond will increase daily, thanks to accrued interest being accounted for, and therefore the bank will be able to re-invest these daily accrued interest (by lending additional money or buying more financial products). In that case, the discount factor is then (if the usual money market day count convention for

1938-685: The markets they supplied than the source from which they got the products. However, with the advent of the internet and e-procurement there is an increasing number of wholesalers located nearer to the manufacturers in China, Taiwan , and Southeast Asia. The profit margins of wholesalers depend largely on their ability to achieve market competitive transaction costs. In the banking industry "wholesale" usually refers to wholesale banking , providing tailored services to large customers, in contrast with retail banking , providing standardized services to large numbers of smaller customers. In real estate, wholesaling

1989-628: The net price of an item after single or multiple trade discounts and can calculate a single discount rate that is equivalent to a series of multiple discounts. Further, it helps to calculate the amount of cash discount for which a payment qualifies. The annual cycle of merchandising differs between countries and even within them, particularly relating to cultural customs like holidays, and seasonal issues like climate and local sporting and recreation. Events such as Chinese festivals and Japanese festivals are incorporated in an annual cycle of shop decorations and merchandise promotion. As just one example, in

2040-676: The opposite effect. For example, this practice works to counteract a lack of abundant capacity in stores during prime seasons and a lack of value in premature products. Merchandising also varies within retail chains , where stores in places like Buffalo might carry snow blowers , while stores in Florida and southern California might instead carry beach clothing and barbecue grills all year. Coastal-area stores might carry water skiing equipment, while ones near mountain ranges would likely have snow skiing and snowboarding gear if there are ski areas nearby. As promotional merchandise acquires

2091-489: The original show, even lasting decades after the show has largely disappeared from popularity. In other cases, large amounts of merchandise can be generated from a pitifully small amount of source material ( Mashimaro ). The most common adult-oriented merchandising is that related to professional sports teams (and their players). A smaller niche in merchandising is the marketing of more adult-oriented products in connection with similarly adult-oriented films and TV shows. This

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2142-402: The period of time covered by the delay in payment. The relationship between the discount yield and the rate of return on other financial assets is usually discussed in economic and financial theories involving the inter-relation between various market prices , and the achievement of Pareto optimality through the operations in the capitalistic price mechanism , as well as in the discussion of

2193-495: The price paid by the consumer; disadvantages include difficulty in reaching consumers. Direct selling is a business model wherein sellers sell the goods directly to the end customer. Merchandising In retail commerce, visual display merchandising means merchandise sales using product design , selection, packaging , pricing , and display that stimulates consumers to spend more. This includes disciplines and discounting , physical presentation of products and displays, and

2244-450: The product. In grocery stores, for example, almost all products delivered directly to the store from a manufacturer or wholesaler will be stocked by the manufacturer's/wholesaler's employee who is a full-time merchandiser. Product categories where this is common are Beverage (all types, alcoholic and non-alcoholic), packaged baked goods (bread and pastries), magazines and books, and health and beauty products. For major food manufacturers in

2295-402: The rate of return is usually calculated in accordance to an annual return on investment . Since an investor earns a return on the original principal amount of the investment as well as on any prior period investment income, investment earnings are "compounded" as time advances. Therefore, considering the fact that the "discount" must match the benefits obtained from a similar investment asset ,

2346-419: The risk free rate. The discount factor , DF(T) , is the factor by which a future cash flow must be multiplied in order to obtain the present value. For a zero-rate (also called spot rate) r , taken from a yield curve , and a time to cash flow T (in years), the discount factor is: In the case where the only discount rate one has is not a zero-rate (neither taken from a zero-coupon bond nor converted from

2397-497: The same item with no such image. For the owners of the IP ( intellectual property ) in question, merchandising is a very popular source of revenue, due to the low cost of letting a third party manufacture the merchandise, while the IP owners collect the merchandising (royalty) fees. In 1903, a year after publishing The Tale of Peter Rabbit , English author Beatrix Potter created the first Peter Rabbit soft toy and registered him at

2448-404: The seller again at a future date. However, these strategies can be difficult for sellers to maintain as it can require many more physical and technical resources that may not be currently available to them. A challenge that online retailers face in comparison to the traditional in-store shopping experience is the sensory exploration that isn't available to consumers through a screen. An area this

2499-463: The type of product. Additionally, consumption tax is levied on products such as tobacco , alcohol , and luxury goods . These taxes are part of China's broader strategy to promote domestic consumption and regulate imports. On the other hand, Vietnam imposes a standard VAT rate of 10% on most goods and services, with exemptions for certain agricultural products and essential services. In Europe , Value-Added Tax (VAT) rates vary among member states, with

2550-431: The various disadvantages they face, compared to established companies: One method that looks into a correct discount rate is the capital asset pricing model . This model takes into account three variables that make up the discount rate: 1. Risk free rate : The percentage of return generated by investing in risk free securities such as government bonds. 2. Beta : The measurement of how a company's stock price reacts to

2601-539: Was first seen with the Peter Rabbit soft toy in 1903, with the Smithsonian magazine stating Beatrix Potter "created a system that continues to benefit all licensed characters, from Mickey Mouse to Harry Potter ." However, sometimes it can be the other way around, with the show written to include the toys, as advertising for the merchandise. Sometimes merchandising from a television show can grow far beyond

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