CHAPTER 2
OPERATION OF THE SALES OUTLETS
As a Ship's Serviceman third class, you can expect to operate one of the sales outlets aboard ship. The sales outlets are part of the ship's store and include retail stores, vending machines, amusement machines, snack bars, and standard Navy clothing stores. The sales outlets are basically used to display and sell ship's store merchandise, except in the case of amusement machines where you are selling the use of the video game itself. The cash received from sales in these sales outlets is normally more than the original cost of merchandise, unless you are selling standard Navy clothing stock which is sold at standard prices. This additional cash is used to pay for expenses incurred in operating the activities of the ship's store. Any cash left after paying expenses is available for transfer to the recreation fund, which is used for the recreation of crew members aboard ship.

SHIP'S STORE
As mentioned earlier in chapter 1 of this training manual (TRAMAN), the S-3 division is part of the supply department and is manned by Ship's Servicemen. In a broad sense, the ship's store is the S-3 division because it includes all the activities that make up the S-3 division. This is why we commonly refer to the S-3 division as the ship's store operation. In chapter 1 of this TRAMAN, we mentioned that the supply officer is responsible for the overall operation of the supply department including the ship's store. On ships with junior Supply Corps officers attached, the commanding officer may designate them in writing to assume financial accountability and overall management for the ship's store. Once designated, this officer is referred to as the ship's store officer.

ESTABLISHING A SHIP'S STORE
A ship's store consisting of sales outlets and service activities will be operated on ships in commission (except submarines) to which an officer of the Supply Corps is assigned. Before establishing the ship's store, the commanding officer must report by letter the date the ship's store will begin operations to the Navy Resale and Services Support office (NAVRESSO). A copy of the letter should be forwarded to the ship's type commander and Fleet Accounting and Disbursing Center, Atlantic Fleet, by ships with service designator V and Fleet Accounting and Disbursing Center, Pacific Fleet, by ships with service designator R. Once this is done, the commanding officer may authorize any or all of the following activities to operate:

Sales Outlets
Retail store( s)
Vending machine( s)
Amusement machine( s)
Snack bar( s)
Standard Navy clothing store( s)
Service Activities
Barbershop
Laundry
Dry-cleaning plant
Operation of the ROM microcomputer and maintenance of automated ship's store records

The size of the ship's store operation varies from one ship to another. The size basically depends on the size of the ship, the number of customers served, the number of qualified Ship's Servicemen aboard, and the requirements of the commanding officer.

Precommissioned Ships
A ship's store may also be established on a precommissioned ship as long as the prospective supply officer has already reported aboard. Once the prospective supply officer is aboard, the prospective commanding officer may establish a ship's store in the same manner as commissioned ships, except the letter request must be sent via the ship's type commander.

Unauthorized Activities
Only those activities authorized by the com-manding officer may operate aboard ship. No sales outlet or service activity outside the ship's store operation is authorized and considered a concession. No commercial vendors should be allowed aboard to sell merchandise to the crew, under the agreement to pay a portion of the profits to the ship's store or receive payment for items sold by invoicing them through the ship's store. No officer, enlisted, or civilian can sell merchandise individually owned through the ship's store for personal profit or interest. Ship's store personnel working in the service activities cannot accept money or extra compensation for work performed.