2.11 Marketing Math Objective: Process the sale to complete the exchange.

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2.11 Marketing Math Objective: Process the sale to complete the exchange.

Transcript of 2.11 Marketing Math Objective: Process the sale to complete the exchange.

Page 1: 2.11 Marketing Math Objective: Process the sale to complete the exchange.

2.11 Marketing Math

Objective: Process the sale to complete the exchange.

Page 2: 2.11 Marketing Math Objective: Process the sale to complete the exchange.

Making Change

Simple Math!Subtraction

Bill Total = $18.95Customer has $20.00How Much Change?

Page 3: 2.11 Marketing Math Objective: Process the sale to complete the exchange.

Extensions

MultiplicationMultiply the number of units by the price per unit

12 Cans of Soda$0.50 per can12 x $0.50 = $6.00

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John Smith

7150 E. 24th Street

Yuma, AZ 85365

04/08/11 6 38760

3

2

2

3 Halters

Belts

Pair of Boots

Shirts $29.95

36.95

125.00

37.95

$89.95

$73.90

$250.00

$113.85

$527.60

Extensions and Subtotal

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Methods of payment for a sale

Cash or check SalesCredit CardDebit CardLayawayOn ApprovalCash On Delivery

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Cash or Check

• 23% of sales are cash• 4.3% of sales are check

• Cash is King:• Some stores will not accept checks• All stores have check policies

• License or ID • Phone Number• Bounced check charges

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Credit Card vs. Debit Card

Debit Card: Cheaper than Credit CardFlat Rate of $0.59

Faster than CheckMoney is transferred immediately

Some offer debit card discount

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Credit Card vs. Debit Card

Credit CardBusinesses pay a credit card fee

1.79% to 3.25% of the transaction

Stores may set charging limits

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Other Methods of PaymentCash-on-Delivery : (COD)Ex: Pizza Delivery

Lay-Away:Merchandise removed from stockCustomer leaves a deposit and makes payments

Merchandise received when paid off

On Approval:Customer takes merchandise on store credit

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Charges Affecting the Sale

DiscountsAllowancesSales TaxShipping Charges

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DiscountsReduction in sales pricesCalculated before sales tax

Special SalesCouponsCustomer Loyalty DiscountsGroup DiscountsBulk Sales Discounts

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Calculating the Discount

$30 item with a 22% discount

Multiply price by the discount percentage

$30 x 22% = $6.60 (Total Discount)

Subtract the total discount from the price

$30 - $6.60 = $23.40

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Allowances

A partial return of the sales price

Usually occurs when merchandise is defective

Calculated Like a Discount

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Sales Tax

Sales Tax: A percentage fee placed by the government on the sale of goods and services.

Sales Taxes are different per state and county

Alaska, New Hampshire, Delaware, & Oregon = 0%Arizona is highest: 11.75%

North Carolina =Mecklenburg County =

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Calculating Sales Tax

Multiply subtotal by the sales tax rate

$25 x 7.25% = $1.81

Add sales tax to the subtotal for sale total

$25 + $1.81 = $26.81

Page 16: 2.11 Marketing Math Objective: Process the sale to complete the exchange.

John Smith

7150 E. 24th Street

Yuma, AZ 85365

04/08/11 6 38760

3

2

2

3 Halters

Belts

Pair of Boots

Shirts $29.95

36.95

125.00

37.95

$89.95

$73.90

$250.00

$113.85

$527.60

$31.66

$559.26

$527.60 +$31.66

$559.26.066%

$527.60 *.066

$31.66

Bill total with tax included

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Shipping ChargesCharges for delivery of a productShipping charges are not subject to tax.

Shipping Charges are often paid by the consumer.

Shipping charges are calculated based on:Weight Item PriceGeographic ZonesLength of time to deliverCombination of 2 or more

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Shipping

Shipping charges are not subject to tax.

Shipping Charges are often paid by the consumer.

Shipping charges are calculated based on:Weight Item PriceGeographic ZonesCombination of 2 or more

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How do charges and discounts affect the price of purchases?

Increase the cost of items Cover credit card charges and frequent discounts

Retailers pass the charges or discount down to the customerAs an additional chargeRaise the original price of the item

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After the Transaction

ReturnsMerchandise brought back for a cash refund or credit Full payment returned

ExchangesMerchandise returned for something else

Even exchange: occurs when an item is exchanged for the exact same thing

Uneven Exchange: money may be owed or returned

Some stores only offer in-store credit & not cash back

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Technology in calculations

Speeds up processNo “in your head” or hand calculations

POS (point of sale) Computer make all of the calculations

Less time taken to double check figures.