Transcript Chapter 16 Section 16.2
Marketing
Essentials
n
Chapter 16
Using Math in Sales
Section 16.2 Sales Transactions
Chapter 16 n Using Math in Sales 1
SECTION 16.2
Sales Transactions
What You'll Learn
The various types of sales transactions The math necessary to calculate sales checks Chapter 16 n Using Math in Sales 2
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.
Chapter 16 n Using Math in Sales 3
SECTION 16.2
Sales Transactions
Key Terms
cash sale debit card floor limit layaway on-approval sale cash on delivery (COD) sale return exchange allowance sales tax parcel post Chapter 16 n Using Math in Sales 4
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 Chapter 16 n Using Math in Sales 5 Slide 1 of 2
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 Chapter 16 n Using Math in Sales 6 Slide 2 of 2
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.
Chapter 16 n Using Math in Sales 7
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.
Chapter 16 n Using Math in Sales 8
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.
Chapter 16 n Using Math in Sales 9
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.
Chapter 16 n Using Math in Sales 10 Slide 1 of 2
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.
Chapter 16 n Using Math in Sales 11 Slide 2 of 2
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.
Chapter 16 n Using Math in Sales 12
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.
Chapter 16 n Using Math in Sales 13
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.
Chapter 16 n Using Math in Sales 14
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.
Chapter 16 n Using Math in Sales 15
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.
Chapter 16 n Using Math in Sales 16
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.
Chapter 16 n Using Math in Sales 17 Slide 1 of 2
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. Chapter 16 n Using Math in Sales 18 Slide 2 of 2
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?
Chapter 16 n Using Math in Sales 19
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.
Chapter 16 n Using Math in Sales 20
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 Chapter 16 n Using Math in Sales 21 Slide 1 of 3
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.
Chapter 16 n Using Math in Sales 22 Slide 2 of 3
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.
Chapter 16 n Using Math in Sales 23 Slide 3 of 3
16.2
A SSESSMENT
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?
Chapter 16 n Using Math in Sales 24
16.2
A SSESSMENT
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?
Chapter 16 n Using Math in Sales 25
Marketing
Essentials End of Section 16.2
Chapter 16 n Using Math in Sales 26