Purchasing

In the Purchasing lesson, we learned how buying can effect sales and profits. Understand the qualities of a good buyer, the process of how to organize products through the store to sell.  We learned to understand how the quality of the product can affect the the sales on the product.  How to calculate stock turnovers by defining it in terms of items and dollars.  Last to list the problems having to do with purchasing and inventory control.  We also learned concepts like calculating open-to-buy, and computing stock turnover.  And key terms like buyer, vendor, inventory, stock, invoice, inventory control, just-in-time inventory control system, physical inventory system, perpetual inventory system, and stock turnover.  I learned from this lesson that the quality of the of the product can affect sales and the price of a product.      

Pricing

When we did the pricing lesson on Virtual Business we learned the process of how to calculate the price on a desired amount and find out the margin based on the sales of our desired price for goods.  How to make the most money by analyzing the margin and adjusting it to the most satisfying way.  The relationship between price, demand, and profits.  Last to lower the price and raise it so they can compete with other competitors. We also learned some math equations and key terms that helped calculate the price, margin, markup, and markdown that helped us get a better understanding of pricing.  From lesson two I feel that I understand how to price products and how to get the maximum margin by adjusting the price.