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glossary of business terms


P

Packing Slip
A printed sheet included with a shipment showing the merchandise shipped; may also show any items that are back ordered or canceled; usually doesn't include prices.

Partnership
A legal form of business in which two or more people are responsible for the assets and liabilities of the business.

Perceived Value
The price of an item based on what the customer would perceive is a fair price.

Percentage of Sales
In leases, the rent based in part on the store's total sales.

Plan-o-Gram
A floor layout for merchandise; sometimes a suggested layout received from a vendor for a certain line of goods.

PLU
Abbreviation for price look up, a computerized method of checking prices that are programmed into a POS system.

PO
Abbreviation for purchase order.

Point of Purchase (POP)
Displays, signs or other materials that are often provided by a vendor to help sell a certain product.

POS System
Abbreviation for point-of-sale system, a computerized cash-register system that collects data on inventory, sales, customer information, etc.

Prepaid
Merchandise paid for before being shipped.

Pre-ticketing
Putting a store's retail price and codes on merchandise before it is shipped by the vendor.

Price Point
A specific price or price range. Stores might carry merchandise in the $10 price point, or state that a specific product line is a good price point.

Private Label
Merchandise that carries a label with the store's name on it; the products are manufactured by a vendor for any store, but each store's items have the custom label

Pro Forma Invoice
An invoice to be paid before the merchandise is shipped; same as prepaid.

Profit and Loss Statement (P&L)
A financial statement that shows the store's income and expenses.

Proprietary Credit Card Program
An in-house charge account for customers with credit cards created with the store's name.

Purchase Order
A listing of products being ordered stating the product numbers, quantities, payment terms, delivery information and wholesale prices.