Marketing Indicator 2.09

1. Marketing Indicator 2.09 Process the sale to complete the exchange.

2. Sales transactions include: • Cash or sales check • Debit card sales • Credit card sales • Layaway sales • On approval sale • Cash-on-delivery (COD) • PayPal

3. Types of Retail Sales • Cash sales include cash or checks • Debit cards are bankcards or ATM cards – funds are withdrawn from the customers checking _______________ • Visa, _______________, American Express, and _______________ are examples of credit cards

4. What is a special order? • The request of an item not normally in stock or carried at a store

5. Procedures for processing special orders. • Ticket is created (special order form, layaway form, open order form, special order form, purchase order form) • Deposit (normally 20% or 50%) is recorded on the ticket • Order printed so retailer can process purchase with the correct vendor • Setup inventory item with correct barcode information, after the product is added to the purchase order system. • Item is flagged for open/special order • Customer is called to let them know order is in • Paid for, account marked paid, receipt given, item given to customer • NEVER GIVE AWAY a customers special order!

6. What is the nature of telephone orders in selling? • Instant communication • Customers calling on impulse • Have sudden need and want need filled • People buy where they feel comfortable • Give them that feeling when they call • Smile • Must talk to the person as you do to someone in person • Must be in control—ask the questions • Must be polite and courteous—not pushy and aggressive • Must have information to share with the potential customer

7. Procedures for processing telephone orders. • Get Customer name/customer number • Phone number • Address • Catalog number, if they have one • Items they wish to purchase – IMPORTANT CHECK AVAILABILITY • Sales tax/shipping charges/total • Payment method • Arrival time (when they should expect the items) • Thank for business

8. Calculating Sales Tax • 10% = _________ • .10 • 3 ½ % = ___________ • .035 • Subtotal Tax Rate $267.82 X 5 ¼ % = Amount of tax Amount of Tax = $14.06 267.82+ 14.06 = Total Sales Total Sales = 281.88

9. Completing a Sales Transaction 2 running shorts at $32.50 each 3 pair of socks at $5 each Tax is 7.5% 2 x $32.50 = $65.00 3 x $ 5.00 = $15.00 $65.00 + $15.00 = $80.00 $80.00 x .075 = $6.00 $80.00+ $6.00 = $86.00

10. Completing a Sales Transaction • The extension is the result of multiplying the number of units by the cost per unit • Add item amounts • Calculate sales _________ and total

11. Calculate Markdowns • Markdowns are the most common type of price change. • Markdowns are used as a tool to stimulate sales, dispose of slow moving/discontinued merchandise, meet competitors’ prices and increase customer traffic. MARKDOWN (MD) = RETAIL PRICE X MD% $25 = $100 X 25% FINAL SELLING PRICE = RETAIL PRICE – MD $75 = $100 - $25

12. Shipping/Delivery TableShipping Charges and Example • You must also charge shipping for orders shipped to geographical zones. • For Example: shipments addressed in geographical zone A, have a shipping charge of $15, while shipping charges are $10 for shipments addressed in geographical zone B. The rest of the world is subject to $25 shipping charges.

13. Shipping Charges • How much should be charged to ship a 45-pound package to Puerto Rico from North Carolina based on the delivery chart above? • $61.25 • How much should be charged to ship a 4-pound package to California from Utah based on the delivery chart above? • $8.25

14. Shipping Charges • A 350-pound shipment is sent by motor freight at a rate of $10.60 per 100 pounds.  What are the shipping charges? • 350/100 = 3.50 • 3.50 x 10.60 = $37.10 • A 486-pound shipment is sent by motor freight at a rate of $12.45 per 50 pounds.  What are the shipping charges? • 486/50 = 9.72 • 9.72 x 12.45 = $121.01