What does the percentage called the consumer value index represent?

The consumer value index represents the ratio of the wholesale amount of merchandise to its retail price. This metric is important in the context of funeral service merchandising because it helps to illustrate the perceived value a consumer gets from a product relative to its price point. By analyzing this ratio, funeral service professionals can assess how competitively priced their merchandise is compared to wholesale costs, ultimately assisting in making informed pricing decisions.

Using this index, funeral directors can understand how much of the retail price is attributed to costs, ensuring that consumers are receiving fair value for the products they purchase. This contextual relationship can influence inventory management, pricing strategies, and overall merchandising success by highlighting potential areas for improvement in sales and marketing approaches.