Customer Transactions

1. Customer Transactions Unit 5: Retail Agribusiness Sales Lesson: AS7

2. Objectives Lesson Objective: • After completing the lesson on customer transactions, students will demonstrate their ability to apply the concept in real-world situations by obtaining a minimum score of 80% on Customer Scenario Role-Plays. Enabling Objectives: • Role-play a positive and negative customer service scenario. • Create a sample invoice. • Complete an invoice and figure sales tax for business transactions.

3. Key Terms • Sales Tax • Tax Exempt

4. Last month a customer who owns a small 10-acre wooden lot purchased this 16- inch power chain saw. Today he comes to the store, claiming the chain saw has never worked properly. He says it was never sharp, the motor ran for a short time and died, the pull cord broke, and then it appeared the engine locked up.The customer paid $230.00 for the chain saw. The storeowner, Bob, is out of town for two weeks and asked that you make all service decisions. The product does have a 45-day parts and labor warranty that specifies “proper care” as criteria for the customer. Bob’s store policy is to always provide quality products and good service to maintain customer satisfaction!

5. Last week, Jeff came in and purchased a large pair of clippers to use to trim his dog. Today he returned the clippers complaining that they were too noisy, they scared the dog, they did not clip inside the dog’s ears, and his arm got tired before the dog was half clipped. The clippers being returned are clean and show no signs of use. After examining the box, it appears it can be easily resealed.

6. Shana Smith was in last week to purchase chemical for the thistles in the pasture she uses for grazing her and her husband’s registered Simmentals. She purchased 5 gallons of Curtail, a brand name broadleaf weed killer. After spraying for the thistles, she and her husband decided they were not going to graze the field, but would instead make hay on the 100 acres.All was good and well until Shana read in the newspaper that hay sprayed with Clopyralid cannot be composted. Clopyralid is one of the active ingredients in Curtail. Shana and her husband would now like the chemical and fertilizer company you work for to purchase the hay since they can no longer compost their hay.

7. Al purchases fundraising items for the local FFA chapter each year. This year was no exception, except for the fact that he ordered from a new FFA member. The one he normally orders from graduated, so he gladly accepted when another member came knocking on his door!Al ordered a mixed box of oranges and grapefruit, a package of beef sticks, a box of cheese, and a spotted poinsettia. The member he ordered from said he would deliver his items the first week of December.Al started getting concerned about his fundraising items when it neared the end of the first week of December. Finally, the next Monday his fundraising items were delivered! Al took inventory, and everything was there. However, once the FFA member left, he opened his box of fruit and noticed eight moldy pieces of fruit. Al made a phone call the next morning to the FFA advisor to see what he could do. Unfortunately, no more fruit was available since all items were supposed to be delivered the week prior. Al cannot get a replacement box.

8. Customer Relations

9. Customer Service in Retail • Friendly, greet the customer with something more than “How can I help you?” • Introduce yourself • Let customers know where you will be when they are ready for you to help them • If they are ready when you greet them, be ready to help them right then • Make eye contact • No gum • Do not point, but show them to what they are looking for • Compliment their purchase • Give your customer options • If you see something that would benefit, improve, or enhance their purchase, let them know • Live customer comes first, not a phone call • Correct answer is “I can find out for you,” not “I don’t know.” • Smile as customers leave and encourage them to come again

10. Invoices and Sales Tickets • Part of a good record keeping system • Assist in managing inventory • Record of customer purchases • Record of each transaction

11. Invoices and Sales Tickets Need to Contain… • Date of sale • Customer’s name and address • Complete description of article sold • Discounts, sales tax, and amount due • Method of payment • Any special instructions

12. Creating Electronic Invoices • Basic template are available using Microsoft office • http://office.microsoft.com/en-us/templates/basic-invoice-TC101877521.aspx • Microsoft Excel • Follow steps on next slides

13. Load Microsoft Excel and click "File" then "New" to open the "New Workbook" dialog box

14. Click on “Invoices” or “Microsoft Office Online”

15. Search through invoices available from basic forms to ones suited for more specific types of service

16. “Download” chosen invoice

17. Invoice is downloaded!

18. Sales Tax • Tax charged on purchase price of most goods • Made of state, county, and city sales tax • Business collects sales tax and sends money to state department of revenue

19. Tax Exempt • No sales tax is paid on exempt items • Item or status of purchaser may affect sales tax exemption • Production items • Usage of item • Sales for direct consumption • Tax exempt groups • Blanket certificate are on file to show tax exempt status for all purchases at that business • Unit certificate shows tax exempt status for specified purchase only

20. Using Checks Benefits Procedures Follow business policy for collecting checks Check date Compare dollar amount to written amount Check signature with name on check Make sure check is made out to business Ask for identification – Compare name and address on check Call manager if unsure Treat check as cash sale Stamp check for deposit only • Make record keeping easier • Cancelled check provides evidence of payment • Help reduce chance of loss or theft of cash • Convenient for customers

21. Using Credit Cards • Verify card • Check amount of purchase against credit limit • Check card against list of stolen cards • Check expiration date • Have customer sign credit card receipt • Compare with signature on the card • Give customer card and appropriate copy of receipt

22. Accepting Sales on Account • Check to see if customer has an account and that account is not over limit • Follow established policy concerning who can charge on customer’s account • Record complete description of charged item along with terms and conditions on sales ticket • Have customer sign sales ticket – Check signature • Give customer copy of sales ticket • Record sales ticket in proper ledgers at end of day • Follow up the transaction with normal billing procedures • Credit the account when payment is received

23. Conclusion • Good customer relations makes a customer more likely to come back in the future, and having a reputation for being fair and honest will help attract new customers. • Good record keeping involves having an organized system for invoices and sales tickets. These can serve as permanent records for business transactions and provide managers and customers information that will be needed in the future.

24. Last month a customer who owns a small 10-acre wooden lot purchased this 16- inch power chain saw. Today he comes to the store, claiming the chain saw has never worked properly. He says it was never sharp, the motor ran for a short time and died, the pull cord broke, and then it appeared the engine locked up.The customer paid $230.00 for the chain saw. The storeowner, Bob, is out of town for two weeks and asked that you make all service decisions. The product does have a 45-day parts and labor warranty that specifies “proper care” as criteria for the customer. Bob’s store policy is to always provide quality products and good service to maintain customer satisfaction!

25. Last week, Jeff came in and purchased a large pair of clippers to use to trim his dog. Today he returned the clippers complaining that they were too noisy, they scared the dog, they did not clip inside the dog’s ears, and his arm got tired before the dog was half clipped. The clippers being returned are clean and show no signs of use. After examining the box, it appears it can be easily resealed.

26. Shana Smith was in last week to purchase chemical for thistles in the pasture she uses for grazing her and her husband’s registered Simmentals. She purchased 5 gallons of Curtail, a brand name broadleaf weed killer. After spraying for the thistles, she and her husband decided they were not going to graze the field, but would instead make hay on the 100 acres.All was good and well until Shana read in the newspaper that hay sprayed with Clopyralid cannot be composted. Clopyralid is one of the active ingredients in Curtail. Shana and her husband would now like the chemical and fertilizer company you work for to purchase the hay since they can no longer compost their hay.

27. Al purchases fundraising items for the local FFA chapter each year. This year was no exception, except for the fact that he ordered from a new FFA member. The one he normally orders from graduated, so he gladly accepted when another member came knocking on his door!Al ordered a mixed box of oranges and grapefruit, a package of beef sticks, a box of cheese, and a spotted poinsettia. The member he ordered from said he would deliver his items the first week of December.Al started getting concerned about his fundraising items when it neared the end of the first week of December. Finally, the next Monday his fundraising items were delivered! Al took inventory, and everything was there. However, once the FFA member left, he opened his box of fruit and noticed eight moldy pieces of fruit. Al made a phone call the next morning to the FFA advisor to see what he could do. Unfortunately, no more fruit is available since all items were supposed to be delivered the week prior. Al cannot get a replacement box.

28. Oops! What’s That Going To Cost? • Jot down 3 problems that may arise from not handling transactions effectively and efficiently • Display these problems so they are visible for all to see • What is the outcome of these mistakes?

29. Exit Cards • What did you learn today about customer transactions? • What questions do you still have about customer transactions?