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Using Math In Sales

Using Math In Sales. Marketing. Cash or Check Sale. Credit Card. Debit Card. Layaway. Cash on Delivery. On Approval. Which of the following most applies to you?. When you purchase something do you…… Pay cash Write a check Pay with a credit card Pay with a debit card

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Using Math In Sales

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  1. Using Math In Sales Marketing

  2. Cash or Check Sale Credit Card Debit Card Layaway Cash on Delivery On Approval

  3. Which of the following most applies to you? • When you purchase something do you…… • Pay cash • Write a check • Pay with a credit card • Pay with a debit card • How do people pay for transactions? • 41% Debit Card • 31% Credit Card • 23% Cash • 4.3% Check • Completing and recording the sale symbolizes the end of a business transaction.

  4. Sales Transactions • Types of transactions a cashier will encounter: • Cash sales • Debit/Credit Card • Lay-away (will-call) • On-Approval • Cash On Delivery (COD) • Other Responsibilities: • Returns • Exchanges • Allowances • Sales Tax • Shipping Charges

  5. Cash Sales • Cash Sales: • Customer pays with cash • Simplest type of sale • Cashier records sale in cash register, gives customer change & receipt, completes the purchase

  6. Check Sales 1a. Check Sales: • Customer pays for a purchase with a check • Every store has a specific policy about checks • Drivers License Required • Phone Number, Current Address, etc… • Some stores will not accept them • Whole Foods, Banana Republic, Gap, Ed Hardy • Check Fraud & Slows Down the Sales Process • If someone writes a bad check the business pays for it • If someone uses a stolen debit/credit card the bank pays for it

  7. Sales Transactions • Sales Check: Written record of a sales transaction • Basically a receipt • Must have strong math skills to complete • Date of transaction • Items Purchased & Price • Sales Tax • Total Due

  8. Filling Out a Sales Reciept • When calculating money, you always round up. Example if a pair of socks is 3/$13.99. Each pair costs $4.6633 but the customer would pay $4.67 because you can’t give .6637 of a penny.

  9. Date:____________ .71 + 1.90 + 7.46 + 6.57 = Subtotal Answer * .05 = Subtotal + Tax =

  10. Sales Transactions • Debit Card Sales: • Business must have Personal ID # (PIN) Pad Equipment • Customer who chooses Debit, enters pin #, terminal dials out to make sure enough money is in their account • If you have the money it is transferred to the merchants account • If not your transaction is denied • No signature is required • Businesses pay a flat rate to offer this option ($.59/sale) • Money is in merchant account immediately • Cheaper than credit, faster than check

  11. Debit Card Discount • Nice ‘N Easy • Exxon • IKEA • Arco

  12. Debit Card Sales

  13. Debit Card v. Credit Card

  14. Credit Card sales increase business sales by 40% • Credit card payment is crucial to internet sales • Businesses pay a fee every time a customer uses a credit card • Fees vary depending on how much is spent • Companies that handle a lot of credit transactions pay smaller percentage • Fees are usually between 1.79% for Visa & Mastercard • American Express fees are 3.25% • Stores may set limits on how much a customer can charge due to fraud concerns • Customer & Credit Card Company can sue if they feel you were negligent in transaction

  15. Sales Transactions • Lay-away: Removing merchandise from stock and keeping it in a separate storage area until the customer pays for it. • Also known as Will-Call • Customer makes a deposit on merchandise & then agrees to pay off the purchase in a set period of time • Customer receives the merchandise once they fully pay it off • If they don’t pay it off, merchandise goes back & store keeps deposit • On Approval Sales: Agreement that allows the customer to take merchandise home for further consideration • Store takes credit information upfront • Goods are either purchased or returned • Special privilege only available to regular customers

  16. Sales Transactions • Cash-On-Delivery (COD) Sales: • Transaction that occurs when a customer pays for merchandise at the time of delivery • Example: Pizza delivery • Sales Tax: A percentage fee placed by the government on the sale of goods and services. • Regressive tax • Rates differ from state to state • Alaska, New Hampshire, Delaware, & Oregon = 0% • Arizona is highest: 11.75% • Internet sales usually have no sales tax Source: http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States

  17. Returns: Merchandise brought back for a cash refund or credit • Exchanges: Bring merchandise back in exchange for something • Even exchange occurs when you bring back an item and exchange for the exact same thing • Some stores only offer in-store credit & not cash back • Allowances: A partial return of the sales price for merchandise that the customer has kept. • Usually occurs when merchandise is defective • Shipping Charges: Occurs when items are too bulky or are not available for pickup • Delivery charges are exempt from taxes • Cost of shipping depends on: • Service used (FedEx, UPS, Post Office, etc..) • Weight of shipment • Distance being sent

  18. 3.69 1.18 55.80 6.80 10.20 38.22 14.92 130.81 10.46 141.27

  19. 9.16 19.68 5.88 2.30 10.08 14.64 11.97 73.71 10.32 84.03

  20. Cash Registers Marketing

  21. 32 oz 12 oz 8 oz Cash Registers • Universal Product Code (UPC): A combination of bar code & number used to identify a product and manufacturer. • Every item sold has a different UPC symbol • Different Sizes of the same exact product have their own UPC symbol

  22. Cash Registers • Point –of- Sale: Cash Register combined with a computer. • Captures information about a sale so that is can be applied later • Commonly used to update inventory levels

  23. Cash Register • The Cash Drawer (till) • 10 compartment • 5 In Back • Far Back Left is empty • Left to Right • $20, $10, $5, $1 • $50 & $100 are underneath • 5 In Front • Left to Right • Far Left: Silver Dollars & Half-Dollars • $.25, $.10, $.05, $.01

  24. Cash Register • Giving Back Change: • $43.85 Product • $50.00 Amount Paid • Change: $6.15 • Change ($.10 + $.05) • $1.00 • $5.00 • POS System – Just read back amount owed. • “$6.15 is your change.” • Don’t need to count out because it is displayed for customer

  25. Assignment Go online to www.melissa1shaffer.weebly.com Answer the three questions posted:

  26. Purchase Orders, Invoices, and Shipping Chapter 16 Sec. 3

  27. Why do businesses prefer customers pay cash for purchases? • Money is automatic • They pay a fee for debit & credit cards • Checks bounce

  28. $330.00 * .07 = $23.10 $225.00 * .07 = $15.75

  29. John Smith 7150 E. 24th Street Yuma, AZ 85365 04/08/11 38760 6 3 $29.95 $89.95 Shirts $527.60 *.066 $31.66 2 36.95 $73.90 Belts Pair of Boots 125.00 2 $250.00 3 37.95 $113.85 Halters $527.60 +$31.66 $559.26 $527.60 .066% $31.66 $559.26

  30. Business to Business Sales • Much of the math done in business-to-business sales is for purchase orders or invoices

  31. Purchase Orders • To place an order, most companies prepare a purchase order (PO). • It is a legal contract between the buyer and the supplier. • It lists the quantity, price, and description of the products ordered. • It lists the terms ofpayment and delivery.

  32. Invoices • When filling an order based on a PO, a vendor will include an invoice with the delivered merchandise. • In addition to the merchandise total there are also places for sales tax, shipping charges, and the amount to be paid by the customer.

  33. Dating Terms • Dating terms state when a bill must be paid and the discount permitted for paying early. • Ordinary dating occurs when the dating terms are based on the invoice date. • Ex: 2/10, net 30 --- specifies the percentof discount permitted for paying early (2 percent), the number of days the buyer has to take advantage of the discount (10 days), and the number of days within which the invoice must be paid (30 days).

  34. Shipping • In retail sales transactions, shipping charges are not subject to tax. • Parcel Post – offered by the U.S. Postal Service • Cash on Delivery (COD) – the postal carrier will collect the amount due from the customer and forward it to the company • There is an additional charge for this • Express Mail services include Federal Express, UPS (United Parcel Service), and DHL Express.

  35. Delivery • Delivery terms are part of the selling arrangement negotiated between the buyer and the seller. • F.O.B. = Free On Board • F.O.B. destination – The ownership remains with seller until goods reach their destination. Seller pays costs. • F.O.B. shipping point – The buyer pays costs and is responsible for transit damages. • F.O.B. factory freight prepaid – The goods become the buyer’s property, but the seller pays for shipping. • F.O.B. destination charges reversed – The buyer pays but if goods are lost or damaged in transit, the buyer’s investment is protected.

  36. Due at 10:00 am

  37. .30 * $163.00 = $48.90 .05 * 64.00 = $3.20

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