Marketing Mathematics
“A Basic Skill Needed in Any Business”
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What Kind of Mathematics Do We Use in Business???
Addition
Subtraction
Multiplication
Division
Fractions
Percentages
Identify situations in which the ability to add & subtract are required:
Cashier’s daily balance
Daily sales summary
Customer accounts
Sales checks
Counting $$$
Inventory
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Identify situations in which the ability to multiply & divide are required:
Bulk pricing
Ad time purchases
Average sales
Payment plans
Extensions
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Identify situations in which the ability to calculate percents & fractions are required:
Time cards
Markup
Discounts
Sales tax calculations
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Be able to Complete Sales Checks to 100% accuracy
Use of sales checks
Customer receipt
To determine commissions
Planning future purchases
Market research
Types of sales transactions
Cash/Check
Charge
Layaway
Billing information
Calculating of taxes
Delivery information
Discount
Cash on Delivery “COD”
Returns/Exchanges
Rules to completing a sales check
Fill in all necessary information
Be legible & accurate
Use in correct order
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Be able to use the count-back method of making change
Announce the dollar amount of the sale
Place bill on register plate
Repeat the amount tendered
Count the amount out of the register to yourself and then to the customer
Place money in the register properly
Place the receipt in the customer’s hand
Thank the customer
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Avoiding mistakes
Remain calm/focused
Be willing to start over
Do one transaction at a time
Never put bill in until finished
Enter information carefully
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Be able to place money in the cash drawer properly
The cash drawer arrangement
Placing money in the cash drawer
Bills are placed flat and facing the same direction
Fifties and above are placed under the register drawer
Maintain an adequate change fund
Ask for change in advance
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Be able to complete a charge sales transaction
Very similar to a regular sales check
Add customer account number and authorization code
First check the expiration date
Authorize account
Compare signature on receipt w/ signature on card’s back
Is everything legible?
Return the card to customer
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Be able to handle a check transaction
More difficult
Just like cash, but fraudulent checks are more plentiful
Your job is to prevent
Checks are called “sales drafts.” Drafts are orders to pay. In this case, you’re ordering
your bank to pay.
Checks are “negotiable instruments” meaning that they are transferable.
To transfer a check, it must be endorsed
There are special endorsements
“For Deposit Only”
“Pay to the Order”
Do not accept “Two-Party” checks
Check for the correct information on the check
Compare signature on check w/ what is on their picture ID.
Remember, if they can check your merchandise, you can check their checks.
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Be able to conduct a customer return transaction
Why do stores hate to do return transactions?
Because money is leaving the store instead of coming in!!!
Do store have to do returns?
No
Why do stores do returns?
Customer Trust & loyalty
What other options are available to a salesperson?
Exchange
Credit to their account
Gift certificate
Types of exchanges:
Even Exchange
Uneven Exchange
Return Polices:
Wrapping?
Receipt?
Length of time?
Sale item?
Damage?
What business forms must be changed:
Inventory
Commissions
Cash register balance
Income statements
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Be Able to operate a computerized cash register
Cash register purposes:
Calculate accurately
Provide customer receipt
Provide records for store
Display work to customer
Speed purchase
Cash security
Inventory records
Merchandise ordering
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Common cash register keys:
Operator’s key
–Locks the register
–Initiates reads
“X” read
“Z” read
–Indicates function
Keyboard:
–Receipt
–Receipt feed
–Journal feed
–#/NS
–“X”
–Item Corr.
–“C”
–“Retn MDSE”
–“R/A”
–“PO”
–“Chg.”
–“ST”
–“Doll Disc”
–“AT/TL”
No Sale
Extension
Corrections
Clear
Returns
Account Payment
Paid Out
Charge sale
Subtotal
Discount
Amt Tendered
–Date/No.
–Numeric keys
–Dept. keys
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Common cash register types:
Manual Key Entry
–Numeric keys
–Function keys
•Optical Scanning
–Uses wand to “read”
–UPC (Universal Product Codes)
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Be able to verify a “Change Fund”:
A change fund is the amount of $$$ an operator starts the day with
Amounts vary between $100 and $150 depending on customer habits & sales volume
The make-up depends on the prices charged by the store
Verify your change fund at the start of each day
“Buy change” during the day in advance of running out.
–Pennies = 50 = $ .50
–Nickels = 40 = $ 2.00
–Dimes = 50 = $ 5.00
–Quarters= 40 = $10.00
–Dollars = 25 = $25.00
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Be able to “Tally” the day’s sales & “balance” the register at day’s end
End the day by totaling the coin, currency, charge slips, & checks in the register
Subtract the change fund
Make allowances for returns, corrections, & paid out transactions
Compare the “tape” of the day’s transactions with your totals
Record “overage” or “underage”
Turn in “Tally”
Make change fund for tomorrow
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Be able to describe the role of banks in our business’ operations
Role of banks:
Security
Money Management.
Money substitutes:
Bank checks
Traveler’s checks
Drafts (Bank to bank
checks)
Money orders
Other services:
Deposit boxes
Counseling
Business
Personal
Accounts:
Savings
Terms:
Interest
Income
Payee
To Whom
Drawer
Writer of the check
Drawee The bank
Specialty terms:
Signature Authorization Card
Taxpayer ID
Deposit Slips
Fees
Interest
Cashier’s checks
Bank cards
Credit cards (Store vs.
Bank)
Loans
Real estate/Stocks &
Bonds
Community service
Checking