Presentation on theme: "Marketing Indicator 2.11 Process the sale to complete the exchange."— Presentation transcript:
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 & 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) Purchase Discount – set amount of money business saves on specific order if the payment made within 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, amount needs to be fully paid within 30 days. Bulk discounts – purchasing a large quantity & getting a discount on the price
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
Tax Table Sales Tax and Example OHIO SALES TAX EXERCISE WORKSHEET + TAX TABLE
Shipping/Delivery Table Shipping Charges and Example WORKSHEET + CHART
Alteration Charges How to read & calculate from a chart WORKSHEET
How does technology speed up calculations of charges and discounts? Dont 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 dont 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 doesnt balance Costs the retailer money May cost the retailer a customer Ex: Overcharging the customer Ex: Customer loses confidence in store, as the transaction wasnt correct Takes time to redo the sale/void out the previous transaction Books/accounting dont reconcile