St.

Paul University Philippines

Tuguegarao City, Cagayan 3500

BASIC EDUCATION UNIT

PAASCU LEVEL III ACCREDITED
ISO CERTIFIED

May 25, 2020

Dear Parents/ Guardians:

Warm Paulinian Greetings!

It’s been a while and I pray that your family is safe and healthy!
It has always been our mission at St. Paul University Philippines to provide our students with quality
Catholic Paulinian education. In this time of pandemic, we will continue to do so- but now
in a different way- as we transition into the new normal.
For the fourth quarter of School Year 2019-2020, we will take a systematic path and employ a very
manageable approach in administering class instruction. Over the past few weeks, teachers have been
working diligently on their Dynamic Instructional Plans (DIPs) which will be delivered to all
the learners to ensure continuity of learning.
On the succeeding pages, you will find the fourth quarter learning targets of HELE 6. All learning
tasks of the subject are anchored on the learning competencies your child needs to master. Since these
tasks are to be done at home, I ask that you take time to assist/guide your child to assure
his/her success of education.
Please do also take note that all accomplished tasks may be send through email, messenger,
other social media platform, or be brought to the designated drop boxes strategically situated
at the university’s pedestrian gate.
I am fully aware that these difficult times are having a significant impact on you, your family, and the
school and so we will remain in constant communication with you and will be available for questions
during this transition. We are confident we can move into this new normal together.
Thank you and looking forward to seeing the accomplishment your child will create. I fervently pray
that we will all be blessed and that we will overcome all the difficulties during this time of
uncertainty. Let us continuously pray and work together, all for the greater glory of God!

Sincerely yours in Christ,

MS. DONNABELE R. GALANG

(0905-157-8849)
 BASIC EDUCATION UNIT
PAASCU LEVEL III ACCREDITED
ISO CERTIFIED

DYNAMIC INSTRUCTIONAL PLAN

(SPECIAL EDITION)

HOME ECONOMICS AND

LIVELIHOOD EDUCATION 6
FOURTH QUARTER

Prepared by: Ms. Donnabele R. Galang Checked and Reviewed by: Mrs. Myra I. Balubal
Subject Teacher Subject Team Leader

Approved by: MRS. GLENDA P. CARONAN

Principal
 St. Paul University Philippines
Tuguegarao City, Cagayan 3500

BASIC EDUCATION UNIT

PAASCU LEVEL III ACCREDITED
ISO CERTIFIED

DYNAMIC INSTRUCTIONAL PLAN

(SPECIAL EDITION)

MODULE 1: CLASSIFICATION AND IMPORTANCE OF INDUSTRIAL WORK AND THE

BASIC PROCESSES IN PROJECT MAKING

INTRODUCTION
Industrial arts play an important role in our economy. Many occupations and
businesses belong to this area. Thousands are employed in different industrial works, both in rural
and urban areas. In fact, most of our small- and medium-scale enterprises consist of cottage industries
while large-scale manufacturers are in general industries.

OBJECTIVES:
This module is designed for you to:
1. Identify the classification and importance of industrial work;
2. practice some basic working processes; and
3. prepare a project plan on making handicraft products.

LESSON PROPER/DISCUSSION
Industrial arts is an educational program which features fabrication of objects in wood
or metal using a variety of hand, power, or machine tools. Industrial Arts is commonly referred to as
Technology Education. It is divided into two major areas: the general industries and the handicrafts.
Let us proceed to the first one:

General Industries

General Industries is a premise for factory used for industry in which products or materials of
all kinds and properties are processed, assembled or fabricated using machinery and /or power
in which the nature of production process is not obnoxious or hazardous to public safety. It
includes workshops and service establishments and service industries.

1. Metal works include the manufacture of vehicles, roofing, galvanized sheets, tin cans,
and other metal containers.

2. Wood works which include the manufacture of lumber, furniture, sash factories, wood
carvings, and other wood decors.

3. Electrical works which include the manufacture of batteries, bulbs, fluorescents,

electrical wirings, and all kinds of electrical gadgets and devices.

4. Graphic arts which include all types of printing including signs and advertisements.

5. Ceramics which include the making of potteries, chinaware, ceramic wares such as –
dinnerware, cooking wares, ceramic vases, and decors.
Handicrafts

Handicraft is defined as skills done with the hands or an occupation or craft done using the
hands. These include different crafts made generally by hand like indigenous crafts out of native
materials and others made from other sources. Indigenous crafts include the following:

1. Bamboo crafts like furniture, home decors, and the like.

2. Coconut shell crafts like hanging lampshades, coco shell, home decors, and plant hangings.

3. Fiber crafts like doormats, placemats, wall decors, rags, and other home decors.

4. Leather crafts like bags, sandals, slippers, wallets, belts, and upholstery.

5. Rattan crafts like furniture and home decors.

6. Seashell crafts like home decors, bric-a-bracs, jewelry, and personal accessories.

Aside from general industries and handicrafts, there are also other type of craft like –
toy crafts like stuffed toys, plastic craft like – toys, functional containers, and furniture and
decorative items, and book binding.

Importance of Industrial Arts Projects

Different industrial arts projects are important for the following reasons:
 It develops your skills in making various crafts.
 The skills you have acquired are useful in the home especially repair works.
 You can help the family save the money intended for repairs when you do home repairs.
 It becomes a source of income if your skills are channeled to productive work outside home.
 You can use you skills as part of your capital if you want to put up a small business. After
some time, you can start your own business.
 You can provide jobs to family members and others if it becomes a business.
 It can now contribute to the economy of the community once the business has prospered.
 It can be a productive hobby or a leisure activity for the family and friends if you decide not to
put up a livelihood or business.

These are some of the suggested projects that can develop your skills are the following:

A. Electrical Works
 Repair switch
 Repair plugs
 Make an extension chord
 Repair electrical appliances
 Repair/Change light bulbs
 Repair/Change fuse
B. Woodworks
 Repair broken chair
  Make different projects made of wood
 Make wooden toys
 Construct simple home furniture like chairs, tables, etc.
 Change broken hinges
 Repair cracked/chipped wooden home parts like doors, wooden receptacles,
chairs, etc.
C. Metal Works
 Repair damaged screens
 Make a dustpan
 Make a napkin holder
 Make a pencil holder or a pencil case
 Make bookends
D. Graphic Arts
 Make different kinds of lettering for albums, bulletin boards, posters, and streamer.
E. Ceramics
 Make jars and other potteries
 Make dinnerware like cups, saucers, mugs, and all sizes of plates

Success in making a project depends on how you follow the steps involved in each process. Some of
the Basic Working Processesare as follows:

Measuring
Measurement is important in establishing the right proportion of parts in relation to other parts
that make up the whole project. There are various tools used in measuring depending on the material
being measured.
Here are some of the measuring tools:
a. Use a ruler, a zigzag rule, or a push-pull rule for measuring metal, wood or any material of
this type. These gadgets measure the length and the width of the material.

b. Use a T-square for measuring squareness of materials like wood or metal. For measuring
fabric or any material of this type, use a tape measure or a yardstick.

c. Use measuring spoons and cups or a glass measuring quart for measuring powder
or liquid.

There are two standard units of measurement being used in Industrial Arts. These are
the
English System and the Metric System.
The English System makes use of inches and yards, while the Metric System makes use of
centimeters and meters.
The proper technique in measuring means accuracy in making good condition products.
Techniques in measuring include the following:
 Be sure that measuring instrument is in good condition so it can measure accurately. There
should be no bent, folded, or torn part that would affect the accuracy of the measurement.
 Know where to start and place your measuring instruments exactly on the starting point when
measuring.
 Stretch the measuring instrument without pulling it. See to it that it is in a straight
position and that it extends exactly at the point where it should end.
 Read the numbers accurately and record it.
Cutting
Cutting affects the workmanship of a product or project. Proper cutting leads to fine smooth
edges and flawless ends. Tools are used in cutting are the saw, scissors, and metal and wire cutters.
The saw is one of the most frequently used tools for cutting. Here are the steps in the proper way to
saw:
 Prepare the type of saw according to the type of wood.
 Measure and mark the part to be cut.
 Position the wood before cutting.
 Use your index finger as guide in sawing. Position yourself also before sawing.
 Move the saw from top going down. Execute a gentle pressure at the beginning to
ensure
penetration of the teeth on the wood.

Carving
Carving is forming a design by cutting. It is one of the processes involved in woodworking.
The tool commonly used in carving is the chisel. Use mallet in driving the chisel – this will prevent
damage to the chisel’s handle.

Here are the steps in the proper use of chisel:

 Hold the chisel firmly with your right hand.
 Position the chisel on the surface of the wood.
 See to it that the sharp edge of the chisel is pointed at the part of the wood being carved.
 Apply just enough pressure in driving the chisel into the wood.
 Remove the broken wood carefully to avoid splint getting into your fingers.
 Smoothen the surface using the same chisel.

Assembling of Parts
In assembling parts, there are two processes that you can use:
a. Nailing – use proper size of nails for specific wood sizes to be assembled. This way, you can
attain project fitness.
b. Gluing – some parts of a project need to be assembled by means of glue. Use the proper glue
for wood assembly, the drying time of the glue should be followed to have good results.

Smoothening
Smoothening is the process of removing lints and rough edges on wood. This gives
the surface of the wood a very fine texture. Tools used for smoothening are sandpaper and a hand
plane.
Sandpaper also comes in varying textures that is from rough to fine.

Here are the steps in using sandpaper:

 Check if there are holes and cracks on the wood after using the plane.
 Put filling in the hole and cracks then allow to dry.
 Prepare a small piece of wood and wrap the sandpaper around the wood.
 Position the wood with sandpaper on the surface of the wood to be smoothened.

Finishing
This is a process of applying materials like paint, varnish, and coloring materials to improve
the appearance of the project.

A good project is done when one has the interest and the knowledge of doing it. When one
has the interest, he/she tends to be more patient and tries his/her best to make the project with the best
quality. Nothing can be more rewarding than finishing a project you are proud of, something you can
share with your friends and loved ones with much appreciation.

Health and Safety Practices While Working

 Have all materials and tools needed before working. Arrange them in one place.
 Wear appropriate clothes.
 Wear gloves and mask if needed.
  Know how to handle each tool and how to use it properly.

Proper Care and Storage of the Tools and Machines

Proper care of tools and materials is part of establishing good working habits besides
extending the life of the tools. Here are some of guidelines to follow in the care of tools
and materials:
 Clean the surroundings and dispose of trash properly after work.
 Sort out tools used and store them according to kind.
 Keep excess materials in a separate place for future use.
 Apply machine oil on metal tools to avoid rust.
 Tools with blades must be kept sharp always and stored with care.

This is an example on how to make a project plan for a certain project:

Fiber Craft Decor

I. Project : Abaca Heart Fan

II. Objectives:
a. Acquire firsthand experience in decorating an abaca fan
b. Apply creativity and skill in decorating the fan
c. Observe correct use of tools and materials

III. Project Design:

IV. Tools and Materials Needed:

1. Medium-sized abaca heart shaped
2. Fan
3. Nylon lace
4. Centipede trimming
5. Muslin material
6. Nylon string
7. Glue sticks
 8. Wire no.24
9. DE 1/8 ribbon
10. Rosebuds
11. Gold teardrops
12. Glue gun

V. Procedure:
1. Glue the nylon lace to the side of the fan using the glue gun. Shirr or make small
pleats of the lace as you glue around.
2. Glue the centipede trimming on the nylon lace.
3. Fold muslin material three times resembling a come. Glue both ends of the cone.
Make 4 cones.
4. Glue each cone at the center of the fan (at the base of the handle). Glue all four cones
arrange like a fan.
5. Make ribbon bows with three loops each. Secure the center with wire. Then glue this
at the top of the cone. Do this for all four cones.
6. Cut the stem of one rosebud and glue this to the ribbon.
7. Cut a one-inch nylon string. Glue the gold teardrop at one end of the nylon string.
Make 5 gold teardrops.
8. Glue the end of the nylon strips with the teardrop under the ribbon.

FORMATIVE ASSESSMENT

Now, it is your turn to try these out! These 15-item formative assessment aims to help you
practice the skills you have acquired from the module. It will further help you master the concepts
and skills, thus prepares you for the summative assessment.

Directions: Write TRUE if the statement is correct, and FALSE if the statement is wrong:

1. Wood works which include the manufacture of lumber, furniture, wood carvings,
and other wood decors.
2. General industries refers to ceramics, graphic arts, and electrical works.
3. Other type of crafts include toy crafts, plastic crafts, and bookbinding.
4. Crafts are good sources of income as well as productive hobbies for young and old
alike.
5. The two standard units of measurement are the English System and Metric System.
6. The scissor is one of the most frequently used tools for cutting.
7. Measurement is important in establishing the right proportion of parts in relation to
other parts that make up the whole project.
8. Varnishing is the process of applying materials and coloring materials to improve
the appearance of the project.
9. Carving wood is one of the processes involved in woodworking.
10. The tool usually used in carving is the mallet.

Directions: Enumerate at least five (5) Basic Processes in Project Making:

11.
12.
 13.
14.
15.

Note: After answering the 15 items, check your work by comparing your answers to
the answer key at the end of the module. For items which are incorrectly answered, try
working on them again until you will get the correct answer.

SUMMATIVE ASSESSMENT

At this point, you are now ready to take the summative assessment for module 1. Place your
answers on a sheet of bond paper.

Directions: Think of an Industrial Art Project that would help solve the present problem of our
country. Prepare a project plan with your own handicraft project. Follow the format below.

Sample Project Plan Sheet

Type of Project
Name: Grade:
Date:
I. Project:
II. Objectives: _

III. Project Design:

IV. Tools and Materials Needed:
V. Procedure:

CONGRATULATIONS! YOU HAVE COMPLETED MODULE 1!

Formative Assessment (Answer Key)

1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. TRUE
6. TRUE
7. TRUE
8. TRUE
9. TRUE
10. FALSE
11. Measuring
12. Cutting
13. Carving
14. Assembling of Parts
15. Finishing
Smoothening
 St. Paul University Philippines
Tuguegarao City, Cagayan 3500

BASIC EDUCATION UNIT

PAASCU LEVEL III ACCREDITED
ISO CERTIFIED

DYNAMIC INSTRUCTIONAL PLAN

(SPECIAL EDITION)

MODULE 2: ESTABLISHING A COOPERATIVE AND RETAIL MERCHANDISING

INTRODUCTION
Cooperatives are very popular all over the country because they give numerous benefits to the
members. Especially in this time of economic stringency, the help that cooperatives extend to
the
members provide economic relief.
Retailing in the Philippines as a micro type of business organization is popular in many towns
and cities. Many individuals and families, with a substantial amount of money to be used as capital,
go into this business. This type of business may become the chief means of livelihood which can help
boost the economy of low-income and middle-income families.

OBJECTIVES:
This module is designed for you to:
1. acquire basic knowledge in cooperative and retail merchandising;
2. identify the different ways in establishing a cooperative; and
3. enumerate the different sources of merchandise and the classification of retail store.

LESSON PROPER/DISCUSSION
In this module, we will be dealing with two topics: the first one is cooperative, and the second
one is retail and merchandising. Let us proceed to the first one. Cooperative is one type of business
organization that is usually found in factories, schools, business and industrial
companies, government agencies, and even in local communities.

What to Know About a Cooperative

1. It is a business group formed by the members of the company or agency where it is organized.
2. It is owned by its members who contributed amounts of money which they used to buy shares.
3. Each share has a specific value.
4. A member can buy one or more shares depending on the rules of the organization.
5. The shares, when put together, become the capital fund of the organization.
6. The type of business the cooperative will go into depends on the needs of the members.
7. The cooperative is usually managed by Board of Directors, elected by its members.
8. Profit earned is divided among its members depending on the number of shares owned
by each.
9. Rules and regulations of the cooperative are formulated and decided upon by all
members through the Board of Directors.
10. Each member is entitled to one vote regardless of his/her shares in the organization.

Composition of a Cooperative
1. The Members
The members of the cooperative have the following duties and responsibilities:
a. Exercise the right to vote and choose the messengers of the Board of Directors who
shall directly manage and operate the organization.
b. Meetings are held to update members for current issues that affect its members.
c. Patronize and support the organization, its mission and vision, as well as its products
and services.
 d. Consult any of the members of the Board of Directors on problems related to
membership, privileges, benefits, rules, and other pertinent matters.
e. Observe and allow the way the appointed manager and staff run the organization.
f. Suggest improvements and possible solutions to problems that may be offered to
management.

2. The Board of Directors

This is the ruling body of the organization whose primary responsibility is to promote and
protect the interest and welfare of all members of the organization. The board has
four committees, each with specific duties and responsibilities. They are as follows:

a. Committee on Membership
Takes care of all activities pertinent to membership from application to
membership from application to screening, admission into the organization, and
orienting members of the organization, and how they can exercise their privileges and
responsibilities.

b. Committee on Finance
Takes care of the finances of the organization. From expenses to profit, credit,
and dividends. Assesses the overall financial status of the organization within a given
period.

c. Committee on Purchasing
Takes care of the merchandise sold by the organization. It makes surveys on
goods and prices and looks into commodities that are highly in demand by members of
the cooperative. It makes decisions on what to buy, where to buy, how much to buy,
and at what price is most reasonable for every good.

d. Committee on Education
Takes care of educating its members through seminars, conferences, and other
information dissemination strategies. Generally, the percentage of earning goes
to education purposes. There are even scholarships awarded to deserving students
who are children of the members.

Types of Cooperative
These are different types of cooperative in the Philippines:
1. Consumer’s Cooperative
2. Producer’s Cooperative
3. Retailer’s Cooperative
4. Credit Unions
5. Industrial Cooperative
6. Cooperative Marketing

Of these types, the most popular found in factories, industrial and business companies are the
consumer’s cooperative and the credit unions. Based on the survey of families, the priority resources
that they need in their day-to-day living are goods, merchandises, and money. Some
cooperatives function both as consumer and credit organization. This means that the members
can buy their commodities at the end cooperative stores at lower prices. They can also secure
loan in the cooperative in times of need. There are companies with cooperatives functioning
purely as credit unions. Members can secure loan at a very minimal interest for a period of time.
There are, however, guidelines on how, when, and how much a member can borrow.

Guiding Principles in Governing Cooperatives

The National Cooperative Administration lays down the following principles governing the
cooperative organization:
  Membership is open to all employees of the company or agency where the
cooperative is being put up; or to all citizens in a community or locality where it is
organized.
 Democratic participation is practiced where every member exercises control on
the
formulation and implementation of rules and regulation of the organization.
 Allocation of funds for promotional and educational work is made.
 Commodities are sold on cash and not on credit basis. This allows immediate return of
capital. This is necessary, when capital funds are limited.
 Trading is based on market prices. Commodities are sold at current prices. In some
cooperatives, commodities can be sold lower than the current prices to attract more
sales from its members.
 Profit gained by the cooperatives is returned to the members on a limited basis. The
greater the amount of purchase made, the greater the profit. The lesser the amount of
purchase made, the lesser the profit.
 Reserved funds are necessary for future expansions and other provisions that need to
be met. There is a fixed percentage (%) of the profit that is kept for this purpose.

Cooperatives, as a whole, provide a good number of benefits and gains to its members.
However, some disadvantages, met by some cooperatives, are the company policies and
control. Moreover, if the officers of the organization are dishonest or unworthy, or do not possess
skills in management, these can lead to the failure of the organization. However, unlike the retail
store which is owned independently by one or two persons or by a family, the
cooperative is owned independently by one or two persons or by a family, the cooperative is owned
by a group of people with varying interests, beliefs, and backgrounds. As such, there is more
ease and independence in making decisions in a retail store. However, a personal interest of
cooperative officials can sometimes lead to the failure of the organization.

Managing the Cooperative Store

A cooperative store is like a sari-sari store that sells goods that the members need.
Its operation is taken care of by a store manager. In a cooperative store, the store manager may
be a
member of the Board of a member of the organization, or they can hire an outsider provided that the
expertise in running a store is rich and commendable. Important decisions must be made on
the
following:

1. Buying the Merchandise for Sale

The basic guide in purchasing is buying the right quantity of merchandise at the right
time, at the right place, and at the right price.
The right quantity means how much of the merchandise should be bought at one time. This is
influenced by movement of goods from the store to the consumer. There are merchandises that sell
fast and there are those that sell slowly. An inventory of goods done in a weekly or monthly basis can
tell which good sell fast and which sell slowly. As a rule, buy in greater quantity those that are in
demand and buy less when the demand is low. Consider also the storage capacity of the store.
The right time means at what part of the year or month or day it is best to buy the
merchandise. The right time depends on the nature of the merchandise whether it is perishable, such
as fruits and vegetables, raw meat and fish, or non-perishable, such as dry goods, canned goods, and
others.
The right place means the best place to buy the merchandise, take into consideration
the quality of goods; availability of goods in bulk, convenient and accessible location; and the price
is comparatively lower.
The right price means the cost paid for merchandise is comparatively lower than in
other
markets. It may not necessarily be the cheapest but the most reasonable, considering the quality of the
merchandise.

2. Ways of Buying the Merchandise

a. Buying directly from manufacturers or producers – generally, goods are cheaper
when bought from the primary source, such as farmers or factories.
 b. Buying through a middleman – goods bought in bulk stores, such as those in Divisoria,
falls under this type. Wholesaler in this place are actually middlemen who make
the purchase from factories and producers then sell them as a wholesale or retails.
c. Consignment – merchandises are placed in the store through arrangement with a
wholesaler, producer, or manufacturer. When the merchandise is sold, it is then paid to the
consignee, with the store earning a percentage of the profit.

3. Guides in Purchasing
a. Find out if the price is reasonable. Make comparisons, conduct surveys, consult those
who are knowledgeable.
b. Examine the merchandise before buying.
c. Check if the products are of correct weight and quality. Short weighing or wrong counting
can mean less profit or losses.

4. Preparing an Inventory or List of Merchandise

Have an inventory book that records all purchases: date, quantity, specifications. This
will help you keep track of how much merchandise comes in and how much goes out. This
information helps in accurate counting.

5. Arranging the Merchandise in the Store

The store must be well-cleaned, well-ventilated, and well-painted to create a
comfortable, spacious, and attractive setting. In displaying the merchandise in shelves, similar
items should be arranged together, properly labeled, and with corresponding price tag
in place. Shelves should be regularly inspected and replenished with new stocks to
give an impression of fullness. It is a must that a price tag be placed in every type of
merchandise in compliance with the Price Tag Law.

6. Accounting
The computation and recording of the financial transactions of the store must be in
order. This will determine whether the store is earning or losing. For proper
accounting, a record of day-to-day sales, inventory of goods, record of expenses, debts, and
cash on hand is needed. A statement of income is prepared on a weekly or monthly basis, or
depending on the size of the store and the bulk of buying and selling of goods.

Retail Merchandising

Retailing is the selling of merchandise, goods, or commodities to the consumer – the

end user. The consumer, thus, represents you and me, family, and the community.

Forms of Retailing
 Retailing in stores with specific locations such as sarisaristore, a grocery store located in the
ground floor of a house or a building.
 Retailing in the market stalls – these are stalls found in the wet and dry sections of the market.
 House-to-house retailing – peddlers go from house to house, carrying their merchandise,
mostly in big cartons or boxes.
 Travelling stores or stores on wheels – these move from place to place, selling their
merchandise mostly in big cartons or boxes.

Primary Purposes of Retailing

1. The retailers try to meet the basic needs of consumers, such as food, clothing, medicine, and
others, by providing the supplies through a convenient method of purchasing.
2. To make a profit. Retailing is a form of livelihood. Some people depend on it to earn a living.
When profit is gained, the retailer is able to continue operating his business.
Sources of Merchandise
In order to make a good profit, the retailer must know how and when to buy his/her
merchandise. Knowledge of the sources enables him/her to choose the most trustworthy, reliable, and
honest supplier. Most retailers get their supply from the following:
1. Planters – these are big and small farmers who sell their crops directly to the wholesalers or
retailers, depending on the quantity of harvest. Retailers who buy products directly
from
planters find them cheaper than from those sold by wholesalers or middlemen.
2. Manufacturers – these are the producers of processed products, such as soap, canned goods,
bottled goods, dry goods, textiles, and many others.
3. Wholesalers – small-store owners who cannot buy merchandise in big quantities from
manufacturers usually get their supply from wholesalers.
4. Middlemen – these are sellers who buy from manufacturers, planters, or wholesalers and, in
turn, sell the merchandise to the retailers. Unlike the wholesaler with a permanent store, some
middlemen go directly from retailer to retailer taking orders and delivering these orders.

Classification of Retail Stores

Retail stores are classified according to the following:

1. As to goods sold
a. The general merchandise or sarisari store generally found in towns or barrios.
b. The specialty or one-type stores, such as shoe stores, school supplies, hardware, drugstore,
etc.
c. The department store which is composed of different sections, such as men’s
articles, women’s articles, cosmetics, toys, shoes, etc.

2. As to method of selling
a. Travelling stores or stores on wheels – besides the pushcarts, calesas, jeepneys,
trucks, etc., there are also house-to-house peddlers who travel on foot.
b. The cash-and-carry stores like supermarkets and department stores.
c. The self-service stores like fast foods and supermarkets
d. Automatic vending machines which contain items like cola and fruit drinks, sandwiches,
candies, chocolates, and coffee. They are mostly found in business establishments
and
schools.

3. As to ownership
a. Independent stores – these are owned and operated by a single owner. Small stores and
groceries are mostly independent stores.
b. Company stores – these are owned by a group, a partnership, or by individual families.
The company is operated by group of officers – examples are manufacturing,
mining, industrial, and insurance companies.
c. Corporations – these are owned by different individuals who buy shares or stocks which
serve as the capital fund, and is run by a Board of Directors. Individuals who own a major
percentage of the formulation of the corporation policies and decisions.
d. Cooperatives – these are owned, managed, and patronized by its members. The members
are, therefore, the owners and the customers of the store. Consumer’s cooperatives
are found mostly in factories, companies, schools, government agencies, and in
local communities.

FORMATIVE ASSESSMENT

Now, it is your turn to try these out! These 15-item formative assessment aims to help you
practice the skills you have acquired from the module. It will further help you master the concepts
and skills, thus prepares you for the summative assessment.

Directions: Write TRUE if the statement is correct and FALSE if the statement is wrong:
1. A type of business organization found in factories, government agencies, or
in
locality is the cooperative organization.
 2. A cooperative is a business group formed by the members of the company or agency
where it is organized.
3. Rules and regulations of the cooperative are formulated and decided upon by one
member only.
4. “At cost” means prices are higher than the current prices compared to prices of other
stores outside of the company or locality.
5. Cooperative movements aim toward helping people who help themselves, especially
those receiving low salaries and wages.
6. Membership in the organization is exclusive to all employees of the company
or agency.
7. Commodity is sold on cash and on credit basis.
8. A cooperative store is like a wholesale store that sells commodities needed every
day by the family.
9. Reserve funds are necessary for the future expansion and other provisions that need
to be met.
10. The cooperative lends money at higher interest rates than agencies outside.
11. The basic guide in purchasing is buying at the right quantity of merchandise at the
right time, at the right place, and at the right price.
12. There are companies with cooperatives functioning purely as credit unions.
13. The right price means the cost paid for merchandise is comparatively lower than in
other markets.
14. Rules and regulations of the cooperative are formulated and decided by the Board
of Directors alone.
15. The members of the cooperative has the right to vote and choose the members of
the Board of Directors.

Note: After answering the 15 items, check your work by comparing your answers to
the answer key at the end of the module. For items which are incorrectly answered, try working on
them again until you will get the correct answer.

SUMMATIVE ASSESSMENT

At this point, you are now ready to take the summative assessment for module 2. Place your
answers on your notebook.

Directions: Enumerate what is being asked in the question.

1 – 4. If you are given the chance to have a retail store, what classification of retail stores as to
ownership would you choose? Why? How will this benefit you, others and the community?

5 – 8. What type of retail store as to method of selling will you recommend in your community to
help our present problem on social distancing? Why?
9 – 12. With your knowledge in the different sources of merchandise, how will these help you as
future businessman/ businesswoman? Cite examples.

13 – 15. Why do you have to learn the topic on “ESTABLISHING A COOPERATIVE AND
RETAIL MERCHANDISING” as early as grade 6? Give at least three reasons.

CONGRATULATIONS! YOU HAVE COMPLETED MODULE 2!

Formative Assessment (Answer Key)

1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
6. TRUE
7. TRUE
8. TRUE
9. TRUE
10. FALSE
11. TRUE
12. TRUE
13. TRUE
14. FALSE
15. TRUE
 St. Paul University Philippines
Tuguegarao City, Cagayan 3500

BASIC EDUCATION UNIT

PAASCU LEVEL III ACCREDITED
ISO CERTIFIED

DYNAMIC INSTRUCTIONAL PLAN

(SPECIAL EDITION)

HELE 6 –INDUSTRIAL ARTS

MODULE 3: PUTTING UP A RETAIL STORE AND SELLING THE MERCHANDISE

INTRODUCTION
Success of a retail store depends on how the owner starts and operates it. It requires skills and
hard work in order to make the business profitable. Retailing involves buying the merchandise from a
primary or secondary source such as producers or manufacturers, and wholesaler, and
middlemen. The merchandise is then displayed in the retail store for the sale to the consumer – the
end users.

OBJECTIVES:
This module is designed for you to:
1. identify the different guidelines in an efficient store set-up;
2. enumerate the different requirements of a retail business; and
3. explain the different ideas on buying and selling the merchandise.

LESSON PROPER/DISCUSSION

In the previous module, you have learned about the cooperative and retail merchandising. In
this module, you will learn how to put up a retail store and how to buy and sell the merchandise.
Putting up a retail store is a business venture and of course there are requirements to meet to be able
to start and operate one.

Requirements of a Retail Business

1. Capital – the businessman should have enough money to put up all the physical facilities and
other needs of the store to be able to start one. The capital can come from individuals or
family savings; from mortgage of family properties; or from loans secured from banks or
individual financiers. The amount of capital depends on the estimate expenses to be spent for
the business. This would include putting up one’s own store or renting a store space; store
facilities such as cabinets, shelves, containers, counters, cash register, and others; services
such as light water, and personnel; and the merchandise itself.
2. A strategic location where customers can have an easy access to the store – a strategic
location is where there are many potential customers either in a residential area or in a
commercial district.
3. A store space, a house, or a building where the store can be put up – the store should have a
good display of items to be sold and these should be easily seen by people who pass by the
store.
4. Adequate lightning and ventilation – this gives a store cheerful and refreshing look. Good
lightning allows the customers to see the merchandises well. Good ventilation provides for
good breathing and avoids the feeling of discomfort and suffocation.
5. General cleanliness –this includes the floor, walls, and ceilings; outside surrounding of the
store; the fixture; and the merchandise. It also includes the salesperson that has direct contact
with the customers.
6. Effective Advertising – good quality merchandise, reasonable if not lower prices, good
service, and good location are the best means of advertising the store. Sign boards and
billboards also help promote the store.
 7. Availability of merchandise which people in the locality need – the merchandise should be
sold at prices afforded by the customers.
8. Well-trained salesperson that are honest, intelligent, trustworthy, and cheerful can provide
good service to customers.
9. A competent manager does not only know his merchandise, but knows how to deal with his
employees, and customers as well – he/she can go a long way toward making the business a
success. The manager must be intelligent, knowledgeable, trustworthy, patient, and must
possess good human relations skill.
10. Technical Knowledge – this includes knowledge of the merchandise, the business trends and
conditions, marketing, advertising, basic accounting, and other business transactions.

Setting Up the Retail Store

In setting up the store, start with its physical layout. Remember that the goods to be sold
should be attractively arranged and with the full view of the customers. An efficient and attractive
layout can attract customers and increase the sales.

The following are guidelines in an efficient and attractive set-up:

1. Keep walls and ceilings free from cobwebs, writings, dirt, or posters.
2. Place the display within eye-level as much as possible.
3. Construct shelves that are not more than 7 feet in height.
4. Place a price tag on every item. If this is not possible especially in small stores, it is more
practical to post a price tag on the edge of the shelf where the merchandise is located. This is
why similar goods should be grouped together so the placing of price tags is easy.
5. Place all related goods together on the shelves. For instance, all bottled goods together, all
canned goods together, all spices and condiments together, etc. , both inside and out
6. Fill all shelves with merchandise. This gives an impression of abundance of stocks.
7. Keep the store, both inside and out, clean and orderly.
8. Place the counter high enough for customers to talk freely and conveniently with the
salespersons.
9. Cover the raw and cooked foods with transparent screen to protect them from flies.
10. Make sure that the store is well-lighted and the floors are clean and free of boxes, baskets, and
old fixtures.
11. Keep the merchandise free from dust, cobwebs, and other dirt to give impression of freshness.

Buying the Merchandise

The retailer must develop a sound buying and selling program for his/her retail store to ensure
profit and good service. The buying program of the retailer should be based on the principle: Buy
goods that will meet the needs and satisfaction of the consumers or buyers. When the retailer buys his
merchandise for his/her store, the first question in his/her mind is: what does my customer need?
With this in mind, the retailer can now make a careful study of the merchandise he/she thinks
is in demand. The list can be made from the stock of information he/she has taken from the different
sources, such as:
1. Inquiries made by his/her sales clerk to customers.
2. Stock record which shows the items that are easily sold out.
3. The sales of the different items and the merchandise with the highest sales.
4. A customer survey conducted by the store itself or by other agencies concerned with customer
demand.
5. Merchandise most often sold by competitors. This suggests that there is a great demand for
that merchandise.
6. Information from manufacturers and wholesalers with direct contact with other retailers.

Sound buying means that the retailer buys his/her goods from the right sources with the right
quantity and quality at the right time and at the right place.

The right source means a reputable or established manufacturer, producer, or wholesaler. The
right sources can be trusted upon and has honesty and integrity.
 The right quality is usually dictated by price. High quality merchandises are bought at higher
prices than the low quality ones. Depending on the buying capacity of the customer, the retailer can
adjust and buy the right quality that his/her customers can afford. The main idea, however, should be
reasonable quality at a reasonable price.

The right quantity depends on how much is needed by the customer at one time or at a certain
period of time. The lifespan of merchandise determines the amount of stock to buy.
The right time enables the retailer to buy goods when there is a great supply from manufacturers,
producers, and wholesalers. Usually, an abundant supply can lower the prices especially when the
demand is low. Proper care and storage is important to preserve the quality of the merchandise.

A competent retailer should be a competent buyer. Besides, being honest, patient, and aggressive,
he/she must have a knowledge of the business, how it operates, and other changing conditions in the
business market. He/she must know the characteristics or qualities of merchandise and where to buy
them. Lastly, he/she must be able to predict market trends and prices.

Selling the Merchandise

Harry Simon, a veteran salesman, says, “Salesmanship is the art of selling.” It is selling using
one’s knowledge, enthusiasm, and persuasion. It is an art that requires knowledge of the product and
the consumer, good human relations, and traits like patience, enthusiasm and courtesy.
Success in selling depends largely on the salesperson. If the salesperson is a poor one, the
store manager should train him/her to become good.

Generally, there are four qualities that make a good salesman. They are as follows:
1. Good Health
The salesperson must be physically and mentally fit to carry out his/her duties. He/she
should come to work fresh and cheerful always. He/she must observe good health
practices such as adequate rest and sleep, exercise, and follows an adequate diet.

2. Good character
Traits that make good salesmanship include initiative (working without being told);
cheerfulness (facing customers with a smile); courtesy (treating each customer with
due respect); honesty (does not cheat on employer and customer); aggressiveness (can
easily persuade a customer to buy); and self-control (does not easily yield to anger or
frustration when faced with problems).

3. Adequate knowledge related to his/her work

The salesperson should be at least a high school graduate to ensure a background of
General education in all fields: language, mathematics, health, music, science, history,
and current events. This knowledge allows him/her to communicate well with the
customers, coworkers, and employer.

4. Pleasing Personality
A pleasing personality can easily attract people. In retailing, it can easily attract
customers.

Duties of the Salespersons

A salesperson must be wee-oriented on his/her duties and should carry them out well. His/her
goal is to make a sale always. Specifically, his/her duties include:
1. To sell goods of the best quality possible
2. To sell goods at the most reasonable price
3. To be honest, courteous, and straightforward in his/her dealings
4. To give the most satisfactory service to the customer
5. To ensure the rules “Customer is always right” and “First come, first serve” and to treat them
fairly
 The dictum, “The customer is always right,” must always be observed. Every customer,
young or old, rich or poor, must be treated fairly with respect and attention until such is waived
because of misbehavior and scandalous acts.
As a routine, any customer who comes in the store is greeted by the salesperson with “Good
! (morning, afternoon, or evening), followed with “What can I do for you
Ma’am/Sir?” then the salesperson presents/ takes the items asked for. He/she answers queries
about the item. When the transaction is completed, the salesperson says “Thank you
Ma’am/Sir,” “Please come again!.” And “Have a nice day.”

Computing the Price of the Merchandise

The profitability of the store is greatly affected by the pricing of the merchandise. There are
several components of a price. These are as follows:
1. Cost – refers to the part of the price that covers the merchandise. It is also the amount paid for
the merchandise.
2. Mark Up – refers to the additional expenses involved in selling the good such as
transportation, taxes, and others.
3. Profit – refers to the amount added to the item cost.

Below is an illustration of the price components.

Computing for the Selling Price

FORMATIVE ASSESSMENT

Now, it is your turn to try these out! These 15-item formative assessment aims to help you
practice the skills you have acquired from the module. It will further help you master the concepts
and skills, thus prepares you for the summative assessment.

Directions: Enumerate what is being asked in the question:

Enumerate the Requirements of a Retail Business:

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Directions: Encircle the letter of the correct answer.

11. Capital in business is .
a. property which can be sold to cash
b. loan from a bank or individual financier
c. merchandise and stock to be sold
d. money to finance the store, merchandise, and services
12. The first requirement in putting up a retail store is .
a. good location
b. capital
c. store space or building
d. stocks
13. The primary aim of retailing is .
a. profit
b. self-satisfaction
c. meeting the needs of people
d. service and profit
14. Attractive arrangements of merchandise within full view of the customer refer to
the
store’s .
a. attractive layout
b. physical layout
c. efficient layout
 d. merchandise layout
15. What is meant by strategic location?
a. a marketplace
b. a residential district
c. a place easily reached by customers
d. a commercial district

Note: After answering the 15 items, check your work by comparing your answers to
the answer key at the end of the module. For items which are incorrectly answered, try
working on them again until you will get the correct answer.

SUMMATIVE ASSESSMENT

At this point, you are now ready to take the summative assessment for module 3. Place your
answers a sheet of paper.

Directions: Justify what is being asked in the question. (5points each)

1. How does a retail store contribute to the economy of the family, the community, and the
country?

2. What is the meaning of the dictum “The customer is always right,”? When is it not followed?
Cite situations when the store manager or a salesperson decides that the customer is not
always right.

3. What is the meaning of “Sound buying”? Cite an example

CONGRATULATIONS! YOU HAVE COMPLETED MODULE 3!

Formative Assessment (Answer Key)

1. Capital
2. A strategic location where customers can have an easy access to the store
3. A store space, a house, or a building where the store can be put up
4. Adequate lightning and ventilation
5. General cleanliness
6. Effective Advertising
7. Availability of merchandise which people in the locality need
8. Well-trained salesperson that are honest, intelligent, trustworthy, and cheerful can provide
good service to customers.
9. A competent manager does not only know his merchandise, but knows how to deal with his
employees, and customers as well
10. Technical Knowledge
11. d
12. b
13. a
14. a
15. d