Fashion Merchandising: Strand 8

Consumer Finance Options

Standards

Students will describe basic consumer finance options.

Standard 1: Define: POS (Point of Sale).

Standard 2: Develop skills necessary to identify garment quality.

Standard 3: Identify the various payment options available to consumers.

Standard 4: Define common credit terms.

Standard 5: Identify careers in the fashion merchandising industry.

Be a Smart Shopper!!

It is worth your while to become a competent and well-informed consumer.

Making smart clothing buys is a skill you can learn.

Steps to being prepared: Evaluate what you have Make a list Set priorities

Quality Price

Prepare Ahead

Gather Information:

Being informed can make you more confident and reduce your shopping errors. To gather information:

Read magazines, newspapers, fashion blogs

Find out new silhouettes, colors and fabrics

Browse department stores and window displays

Look new ways of putting outfits together, accessories, etc.

Decide where to shop

Plan large purchases first

When to shop

Early in season is always better than late

Shopping Anyone?

Go alone Take a close friend or relative if

needed

Control “impulse buying”

Develop “sales resistance”

Use good shopping manners Wait your turn

Be courteous

Read signs (know policies)

Pick up dropped items

ComparisonShopping

Compare the quality and price of the same or similar items in

different stores before buying.

In clothing the “best value” is the highest quality of materials,

construction, and fashion for the lowest price.

Low Quality Garments:

Have only fair standards of construction, materials, and design.

Medium Quality Garments:

Have reliably good construction, materials, and design. They are usually

quite durable.

High Quality Garments:

Have the best construction, materials, and design. They emphasize cut,

line, and fabric. Characteristics of High Quality Garments are:

1. Matched plaids and stripes at seams

2. Generous hems and linings

3. Linings and buttons are color coordinated with the garment

4. Seams are straight, with even, secure stitches

5. Fasteners are secure and are located so no gapping or pulling occurs

Point of Sale

The place at which goods are retailed. Could include a computer or cash register

Types of Payment

Now that you are ready to buy, you need to consider your options, when it comes to methods of payment. Some of the choices are:

Cash

Credit

Layaway

Cash

Use money to pay for the full cost of what you buy.

Advantages:Not in debt for purchase

No bills

Discipline yourself

Avoid spending money you don’t have

DisadvantagesMight spend money on wrong things

Not enough money for your real needs

Could lose cash

Can’t establish credit

Debit Cards

Looks like a credit card works like cash

Funds are deducted from your bank account

Advantages:

Don’t have to carry cash

Don’t get bills later

Disadvantages:

Have to keep track

Can go over limit

Layaway

A store puts the item away for you for a certain period of time, if you make a deposit on the item

Disadvantages:

Can’t have item until paid in full

If you change your mind, you may pay a penalty

Advantages:

You don’t pay interest

Helps budget

Credit“Buy now, Pay later”

A promise to pay for goods and services in a certain specified way at a later date.

Can be made with a specific store charge account or with a general credit card.

Advantages:Don’t have to carry cash

Easier returns

Have merchandise now, pay later

Disadvantages:Pay interest

Can go over budget

Fraudulent use by others

Credit Terms

Credit Limit:

Maximum financial amount a person may have outstanding on a charge or other credit account.

Credit Rating:

Evaluation of the financial standing of a person or business based on past records of debt repayment and financial status.

30-Day Charge Account:

Consumer credit arrangement whereby the bill must be paid in full within 30 days of the billing date. There is no extra finance charge.

Revolving Charge Account:

Credit account that may be paid in full or in monthly installments with added finance charges but may not exceed a total predetermined credit limit.

Installment Plan:

Credit arrangement by which a down payment is made toward a specific large purchase, and a contract specifies the periodic payments and finance charges.

Careers

Garment inspector: Inspects garments for defects in sewing, knitting, or finishing: Spreads garment on table or draws garment over inspection form.

Sales associate: Sells fashion apparel and accessories in a retail store