chapter 16 using math in sales 1 marketing essentials chapter 16 using math in sales section 16.2...

Chapter 16 Using Math in Sales 1

Marketing EssentialsMarketing Essentials

Chapter 16 Using Math in Sales

Section 16.2 Sales Transactions


SECTION 16.2SECTION 16.2

What You'll LearnWhat You'll Learn

The various types of sales transactions

The math necessary to calculate sales checks

Sales TransactionsSales Transactions


SECTION 16.2SECTION 16.2 Sales TransactionsSales Transactions

Why It's ImportantWhy 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.



Key TermsKey Terms

cash sale

debit card

floor limit

layaway

on-approval sale

cash on delivery (COD) sale

return

exchange

allowance

sales tax

parcel post



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

Retail Sales

Slide 1 of 2



Retail Sales

As a salesperson or cashier, you will also be dealing with:

returns

exchanges

allowances

sales tax

shipping charges

Slide 2 of 2



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.



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.

Debit Card 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.

Credit Sales



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.

Getting Credit Authorizations

Slide 1 of 2



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.

Getting Credit Authorizations

Slide 2 of 2



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.

Recording Credit Sales



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.

Obtaining Payment



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.

Layaway 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.

On-Approval Sales



A cash on delivery (COD) sale is a transaction that occurs when a customer pays for merchandise at the time of delivery.

COD Sales



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.

Slide 1 of 2



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.

Returns, Exchanges, and Allowances

Slide 2 of 2



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?

Refund Slip



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.

Sales Tax



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

Shipping Charges

Slide 1 of 3



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.

Shipping Charges

Slide 2 of 3



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.

Shipping Charges

Slide 3 of 3


16.2 ASSESSMENTASSESSMENT

Reviewing Key Terms and Concepts1. 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?


16.2 ASSESSMENTASSESSMENT

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?


Marketing EssentialsMarketing Essentials

End of Section 16.2

chapter 16 using math in sales 1 marketing essentials chapter 16 using math in sales section 16.2...

Documents

sales section

sales transactions cash

credit sales slide

sales clerk

sales jobs

debit card sales slide

credit card sales layaway

greater proportion of