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Marketing Essentials

Marketing Essentials. n Chapter 16 Using Math in Sales. Section 16.2 Sales Transactions. SECTION 16.2. Sales Transactions. What You'll Learn. The various types of sales transactions The math necessary to calculate sales checks. SECTION 16.2. Sales Transactions. Why It's Important.

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Marketing Essentials

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  1. Marketing Essentials nChapter 16 Using Math in Sales Section 16.2 Sales Transactions

  2. SECTION 16.2 Sales Transactions What You'll Learn • The various types of sales transactions • The math necessary to calculate sales checks

  3. SECTION 16.2 Sales Transactions Why It's Important • Although cash is used for payment in many transactions, an ever-greater proportion of sales involves the use of debit cards or credit cards. Understanding how to handle such sales will be necessary on many sales jobs, and this section explains how it is done.

  4. SECTION 16.2 Sales Transactions Key Terms • return • exchange • allowance • sales tax • parcel post • cash sale • debit card • floor limit • layaway • on-approval sale • cash on delivery (COD) sale

  5. SECTION 16.2 Sales Transactions Retail Sales • As a salesperson or cashier, you will handle several types of sales transactions such as: • cash • debit or credit card sales • layaway (or will-call) sales • on-approval sales • COD sales Slide 1 of 2

  6. SECTION 16.2 Sales Transactions Retail Sales • As a salesperson or cashier, you will also be dealing with: • returns • exchanges • allowances • sales tax • shipping charges Slide 2 of 2

  7. SECTION 16.2 Sales Transactions Cash Sales • A cash sale is a transaction in which the customer pays for his or her purchase with cash or a check. • Cash payment Record the transaction on the register, give the customer change and a cash register receipt, and wrap or bag the purchase. • Check payment Policies vary, but you will probably have to check the customer's identity.

  8. SECTION 16.2 Sales Transactions Debit Card Sales • When a customer uses a debit card the amount of the purchase is debited (or subtracted) from his or her bank account. • The customer slides his or her card through a device that reads its magnetic strip. • Once the sale is totaled, the customer enters a personal identification number. • The sale is approved (or rejected) electronically. • The customer receives a receipt.

  9. SECTION 16.2 Sales Transactions Credit Sales Credit cards, such as Visa, MasterCard, American Express, and department store or oil company cards, make it easier for people to shop. In many businesses, credit card sales are processed electronically, giving the business quick access to funds.

  10. SECTION 16.2 Sales Transactions Getting Credit Authorizations The floor limit is the maximum amount a salesperson may allow a customer to charge without getting special authorization from a manager or credit department within the store. Slide 1 of 2

  11. SECTION 16.2 Sales Transactions Getting Credit Authorizations To approve a charge for a sale, most businesses use electronic credit authorizers (often integrated into POS systems). With electronic credit authorizers, a sales clerk swipes the card, inputs the amount of the sale into the device, and waits for electronic approval or disapproval. Slide 2 of 2

  12. SECTION 16.2 Sales Transactions Recording Credit Sales With credit card sales, you will have to know how to complete credit card sales checks. The math is identical to the cash transaction. There are usually three copies of the sales check: for the customer, the retailer, and the credit card agency. Many businesses record credit sales electronically.

  13. SECTION 16.2 Sales Transactions Obtaining Payment Credit card sales checks for charges to bank cards (Visa, MasterCard, etc.) may be deposited into the bank, like checks, with a special deposit slip. Sales checks for most other cards must be sent to the issuing company for payment.

  14. SECTION 16.2 Sales Transactions Layaway Sales With layaway, or will-call, merchandise is removed from stock and kept in a separate storage area until the customer pays for it. The customer makes a deposit on the merchandise and agrees to pay for the purchase within a certain time period.

  15. SECTION 16.2 Sales Transactions On-Approval Sales • On-approval sale is an agreement that permits a customer to take merchandise (usually clothing) home for further consideration. If the goods are not returned within an agreed-upon time, the sale is final.

  16. SECTION 16.2 Sales Transactions COD Sales A cash on delivery (COD) sale is a transaction that occurs when a customer pays for merchandise at the time of delivery.

  17. SECTION 16.2 Sales Transactions Returns, Exchanges, and Allowances • A return is merchandise brought back for a cash refund or credit. • An exchange is merchandise brought back to be replaced by other merchandise. • An allowance is a partial return of the sale price for merchandise that the customer has kept, usually because of a defect in the merchandise. Slide 1 of 2

  18. SECTION 16.2 Sales Transactions Returns, Exchanges, and Allowances • Returning an item for a replacement that is priced the same is an even exchange. • If the original item is priced more than the new item, refund the difference to the customer, including tax. • If the original item is priced less, the customer pays the difference, including tax. Slide 2 of 2

  19. SECTION 16.2 Sales Transactions Refund Slip Most businesses give customer refunds or exchanges under certain circumstances. Why would the store insist the customer have a sales receipt before giving a refund? If you owned a retail store, what would be your refund policy?

  20. SECTION 16.2 Sales Transactions Sales Tax A sales tax is a government fee placed on the sale of goods and services. These rates differ from state to state and combine local and state charges. Sales tax does not apply to wholesale goods.

  21. SECTION 16.2 Sales Transactions Shipping Charges • Shipping charges are generally exempt from sales tax, so they are added after the sales tax has been calculated. There are several options for shipping merchandise, including: • parcel post • express mail Slide 1 of 3

  22. SECTION 16.2 Sales Transactions Shipping Charges Parcel Post Costs depend on the service, weight of the parcel, and shipping distance. Parcel post is a good option if your customer is willing to wait for delivery. When you ship COD, the postal carrier will collect the amount due and forward it to your company. Your company must prepay the shipping charges. Slide 2 of 3

  23. SECTION 16.2 Sales Transactions Shipping Charges Express Mail This is a fast, more expensive delivery service provided by the U.S. Postal Service and other companies. Costs are based on the weight of the package and the distance. Slide 3 of 3

  24. ASSESSMENT 16.2 Reviewing Key Terms and Concepts • 1. How is a credit card sale different from a debit card sale? A will-call sale? An on-approval sale? • 2. What is the difference between a return and an exchange? • 3. Kim is considering the purchase of a new guitar for $950, plus $24 shipping. The state sales tax is 8 percent. How would Kim go about figuring the total purchase amount?

  25. ASSESSMENT 16.2 Thinking Critically • People have suggested that as more buyers use debit cards, checks will become obsolete. Do you think this is likely? Why or why not?

  26. Marketing Essentials End of Section 16.2

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