Marketing Indicator 2.09 Process the sale to complete the exchange.

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

Types of Retail Sales  Cash sales include cash or checks  Debit cards are bankcards or ATM cards – funds are withdrawn from the customers checking _______________  Visa, _______________, American Express, and _______________ are examples of credit cards

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

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!

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

Procedures for processing telephone orders. 1.Get Customer name/customer number 2.Phone number 3.Address 4.Catalog number, if they have one 5.Items they wish to purchase – IMPORTANT CHECK AVAILABILITY 6.Sales tax/shipping charges/total 7.Payment method 8.Arrival time (when they should expect the items) 9.Thank for business

Calculating Sales Tax  10% = _________ .10  3 ½ % = ___________ .035  Subtotal Tax Rate $ X 5 ¼ % = Amount of tax Amount of Tax = $ = Total Sales Total Sales =

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 $ $6.00 = $ x $ 5.00 = $15.00 $ $15.00 = $80.00 $80.00 x.075 = $6.00

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

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

Shipping/Delivery Table Shipping 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. Shipping Rates Geographical Zone Shipping Rate A$15 B$10 Rest of World$25

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

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 = $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 = $121.01