Marketing Indicator 2.11
Process the sale to complete the exchange.
Types of charges and discounts
associated with purchases.
 Credit card fee (percent of sales based on a sliding scale)
 Travel and entertainment cards are slightly higher than bank cards
 1.79% (MC/Visa) vs. 3.25% (Am Ex)
 Debit card fee (flat fee no matter how much purchase is)
 Purchase Discount – set amount of money that a business saves
on a specific order if the payment is made within a certain
period of time.
 Ex: A purchaser brought a $100 item, with a purchase discount term
3/10, net 30. If he pays within 10 days, he will only need to pay $97. If
not, the amount needs to be fully paid within 30 days.
 Bulk discounts – purchasing a large quantity and getting a
discount on the price
Tax Table
Sales Tax and Example
Your store ships products worldwide from one fulfillment center.
You must collect a 15% sales tax on orders shipped to geographical zone A and a
7% sales tax on orders shipped to geographical zone B. You do not need to collect
sales tax for orders shipped to other regions in the world. The following tables
summarize the taxes that must be collected:
Sales Tax Rates
Geographical
Zone
Tax Rate
A
15%
B
7%
Rest of World
0%
Shipping/Delivery Table
Shipping Charges and Example
 You must also charge shipping for orders shipped to geographical zone
A and geographical zone B. For shipments to addresses in geographical
zone A, shipping charges are $15, while shipping charges are $10 for
shipments to addresses 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
How do charges and discounts affect
the price of purchases?
 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
How does technology speed 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.
What is the impact of incorrectly
calculating charges/discounts?
 Drawer/register doesn’t balance
 Costs the retailer money
 May cost the retailer a customer
 Ex: Overcharging the customer
 Ex: Customer loses confidence in store, as the transaction wasn’t
correct
 Takes time to redo the sale/void out the previous transaction
 Books/accounting don’t reconcile
What is a special order?
The request of an item not
normally in stock or carried at a
store
How does accepting special orders
affect 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.
What is the criteria for accepting
special orders?
 Being able to locate the item and get it in a reasonable amount
of time (ie by when the customer needs it)
 20% or sometimes 50% deposit required
 Will the business make money on it? Or lose money on it?
What paperwork is needed to
process special orders?
 Ticket—outlining exactly what is ordered (color, size, model)
 Deposit money recorded on ticket
 Purchase order for vendor
 Sales receipt---paid in full
Why obtain specific information when
processing special orders?
 To insure retailer is ordering exactly what customer wants
 If wrong color or size is ordered, customer won’t be happy and
may not do business with the retailer anymore.
 Vendor may not take incorrectly ordered item back.
 Costs money for the retailer to ship back/replace (if can) or to
have at store and not sell.
How can selling skills be used in relation
to special orders?
 Ask customer open ended questions to determine their NEED
 If retailer doesn’t have what customer is searching for, offer
them the SOLUTION—find what they want by special order
 If retailer is seen as a solution finder for customer’s needs,
customer will be a repeat customer.
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
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
The importance of speaking
slowly and clearly when
processing telephone orders.
 Fast talk loses listeners
 Customers don’t catch what was said
 Mistake fast talk for insecurity or dishonesty
 Customers want to understand what you are saying
 Customers want to be sure you understand what they are
ordering
 You, want to be sure the order is processed completely and
correctly, for the COMPANY’S benefit
Why is accuracy necessary when
processing telephone orders in
selling?
 Inaccurate orders cost the company money
 The business wants the customer to get (and pay for) what they
want/order
 Otherwise, they will be lost forever as a customer
Procedures for processing
telephone orders.
 Intro
 Find need
 Recommend product/Upselling
 Overcoming objections
 Closing sale by
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Customer name/customer number
Phone number
Address
Catalog number, if they have one
Items they wish to purchase
Sales tax/shipping charges/total
Payment method
Arrival time (when they should expect the items)
Thank for business