NAVY EXCHANGE NOTES
A REMINDER - A particularly good buy Is aV&iiable in the 9hoe dept* on infant and
young children 6hoes. A large number of well known children shoes have been re
duced as much as 50%. You*11 find these values in the regular shoe racks - not on
the markdown counter. Buy now and save!
LAUNDRY SPECIALS - Due to the limited capacity of shirt finishing units in the
'laundry we regret that a limit must be placed on shirts being accepted for one
day service. A limit of 5 shirts per customer has been established and your cor
operation is requested by not' asking for special one day service on more than 5
shirts at one time. -
QUESTIONS AND ANSWERS How much is made on the Retail Store merchandise? Who de<
termines the amount of profit or mark-up?
The Navy Exchange Manual, which governs all parts of the Exchange operation, ’ - •
breaks all merchandise down into approximately 224 categories and establishes a ••
mark-up percentage for each category. Thus the amount of profit or mark-up is
established by regulation and little or no variation is allowed.
The amount of mark-up varies from 8% to 25% with the lowest mark-up being placed
on what are generally termed necessity items such as Cigarettes, soap, tooth
paste, medicine, razor blades, men’s hair dressing, uniforms and. accessories,
sheets-and pillow cases, radios and some sporting goods.
In the middle of the mark-up scale are items such as candy, clocks, kitchen tools
and cutlery, hair dryers, sewing machines, toasters, freezers, playing cards,
.stationary, toys, cosmetics, basic wearing apparel, and sporting goods, These
items are marked-up from 15 to 20%.
Luxuary type items are generally marked up by the higher percentages up to 25%.
In this category are watches, jewelry, silver plate and holloware, luggage, cig
arette lighters and fashion wearing apparel.
The oyer all gross profit for the past 6 months at your Exchange has been 16.5%
but expenses must be deducted from this figure before the Command Recreation Fund
receives its monies. Supplies, equipment, sales salaries, administrative expen
ses and salaries amount to a total of approximately 9% ! A new profit of 7.5%
is the result of your purchases and is used to support your special services act
ivities such as the bowling alleys, Bering theater, hobby shops, gymnasium,
equipment checkout and departmental parties. Our gross profit of 16.5% is quite
low when compared to the average discount house profit of approximately 25%.
Comparing this net profit of 7.5% to the 8% mark-up of some items shows that many
items are sold at little or no net profit.
A comparison of your Exchange prices with "normal" retail prices will reveal that
although we do not always have the best price on >a particular item, we do offer
you*large savings on the vast majority of your purchases.
(notes all percentages are bases on "mark up on retail" or the retail price)