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achieve the purposes of the ships store. You will
have the responsibility for making certain that
ships store personnel follow the necessary regula-
tions and procedures. You must maintain your
ships store operation on a legal basis as well as
on a sound financial one.
Authorized Patrons
According to guidelines set forth in the NAV-
SUP P-487, ships store and clothing stock may
be sold for cash to the following persons:
. Officers and enlisted personnel on board
for duty as ships company
l Officers and enlisted personnel on board
for active duty for training or passage en route
to duty that includes Air Force, Army, Coast
Guard, Navy, and Marine Corps
l Passengers,
including foreign service
personnel of the United States en route to duty,
National Oceanographic and Atmospheric Ad-
ministration personnel, and Public Health Service
personnel
. Accredited United States technicians
(military or civilian) who are actually embarked
or assigned on board in an official capacity
Sales to members of the armed services and other
persons listed in the last two paragraphs above,
who are not actually on board, are authorized in
remote areas provided there is no armed services
exchange in the area. All authorized patrons may
buy items for themselves, for their dependents,
or for gifts, but they cannot buy for resale or
exchange in barter with other persons. Only per-
sonnel authorized to wear the Navy uniform may
buy distinctive items of the uniform.
You should make certain the above regulations
are contained on the price list posted at the store.
Also, the regulations (the authorized patron sign)
should be posted in a conspicuous place near the
cash register. With the regulations posted, it is
easier for the store operator to explain the situa-
tion. You must see that regulations concerning
authorized customers are strictly followed. The
ships store and Navy exchange privileges are
valuable and must be protected. The regulations
concerning various miscellaneous types of
authorized sales, such as to survivors of marine
disasters, official government organizations,
foreign governments, and merchant ships, are
contained in the NAVSUP P-487 and are dis-
cussed in the Ships Serviceman 3 & 2, module
2. You should consult these publications for
details.
Hours of Operation
To accomplish the purposes of the ships store,
you should try to have the store open the max-
imum amount of time possible. Generally, you
should try to provide at least 42 sales hours per
week when the ship is underway and 20 sales hours
per week while the ship is in port. Within these
recommendations you should still have enough
time to get breakouts done.
To provide good service, the store must be
open the maximum amount of time possible to
make sure all personnel have an opportunity to
make their purchases. Of course, it is the com-
manding officer who has the final approval of the
ships store hours.
As a leading Ships
Serviceman, however, you should examine the
hours of operation of the retail outlet. After
careful observation, decide if the hours are
satisfactory and desirable. If they are not,
recommend a change to the ships store officer.
The approved hours should be written and signed
by the commanding officer and posted promi-
nently. Use the hours of operation decals so the
operating hours are visible from the outside of
the store.
Pricing and Marking of Merchandise
Besides helping the ships store officer con-
cerning the hours of operation, you may also be
called upon to help decide on a pricing policy.
Here again the wishes of the commanding officer
must be known, as the commanding officer may
have some strong personal opinions.
The NAVSUP P-487 does not prescribe any
maximum or minimum markup on individual
items of stock. Profits must be sufficient to cover
markdowns below cost, surveys, costs incurred
in operating the service activities, and other
operating expenses. However, there is a ceiling
placed on net profitsthey cannot exceed 15 per-
cent of the cost of retail sales. Any profit
generated above this limit is considered to be
excess. You must turn excess profit over to the
General Fund. The use of the 15 percent markup
is recommended by NAVRESSO.
You should consider the profit objectives of
the ships store. How much money does the com-
manding officer expect for welfare and recreation
6-7
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