1. Marketing Objective 2.11
Order Processing

2. Charges to the company associated with bank card purchases.
Credit card fee (percent of sales based on a sliding scale)
Travel and entertainment cards is slightly higher than bank cards
1.79% (MC/Visa) % (Am Ex)
Debit card fee (flat fee no matter how much purchase is)

3. Discounts for the customer associated with purchases
Purchase Discount – money that a business saves on a specific order if the payment is made within a certain period of time.
Ex: $100 item, with a
purchase discount term 3/10, net 30.
If he pays within 10 days, he pays $97. If not, the full $100 needs to be paid within 30 days.

4. Bulk discounts – purchasing a large quantity and getting a discount on the price

5. Customer Discounts AKA – “it’s on sale” KNOW*** how to calculate
Multiply the regular price times the discount rate
Rupp tip – subtract the discount from 100 and multiply
Example: $850 phone on sale for 25% off
= 75
$850 x .75 = $637.50
Let’s do another one

6. Sales Tax KNOW*** how to calculate: Take the item price
Multiply by sales tax rate. If 6% sales tax = multiply by .06
Different states and countries have different sales tax rates
Example:
$300 item x .06 = $18 in tax
Let’s do another one
Sales Tax Rates
Geographical Zone
Tax Rate A
15% B 7%
Rest of World 0%

7. Shipping Charges Let’s do another one ***KNOW how to calculate:
Take the weight of the item
Multiply by the rate
Example:
320-pound sofa; delivery rate $9.80 per 100 lbs
3.2 (for the 100) x 9.80 = $31.36 shipping
Let’s do another one
Shipping Rates
Geographical Zone
Shipping Rate per 100 lbs A
$15 B
$10
Rest of World
$25

8. Calculating TOTAL cost
$200 Prom Dress or Tuxedo – 15% off
Sales tax 6.5%
Alterations and Delivery $30
What is the total cost?

9. Let’s Calculate $200 x .85 = $170 Sales tax = $170 x .065 = $11.05
Garment – $170.00
+ tax $11.50
+ alterations $30.00
Total

10. GRAND TOTAL = $211.50

11. Charges and discounts affect the price
Can increase the cost of items, overall, to cover credit card charges and frequent discounts
Retailers want to make money, so they pass the charges/loss of revenue because of discount down to the customer
Consumer false sense of discount

12. Technology speeds up calculations of charges and discounts
Don’t have to figure “in your head” or by hand calculations of charges and/or discounts
Cash register/POS (point of sale) terminal/Register does it for you, so you don’t have to make change
Ex: $6.65 sale. You are given a $10 bill. How will you make change?
Lessens the time taken to double check figures.

13. Special Order
The request of an item not normally in stock or carried at a store

14. Special Orders Effect on Retailers?
Continue to meet customers’ needs and establish their loyalty
Time consuming to find the item, place, track, and deliver order
May lose money on an item if a price is quoted to a customer before the total cost (price, shipping, tax) is made aware to you---the retailer.

15. Processing Telephone Orders.
Talk slowly
Repeat what the customer has said
Write order
Confirm with customer what has been ordered
Upselling/Cross Selling
Payment Method
Expected Delivery Date
Thank for business