Run the Store Chapter 4. Winning Strategies The Eagles Nest is a school-based enterprise at...
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Transcript of Run the Store Chapter 4. Winning Strategies The Eagles Nest is a school-based enterprise at...
Run the StoreRun the Store
Chapter 4Chapter 4
Winning StrategiesWinning Strategies
The Eagles Nest is a school-based enterprise at Eldorado High School in Albuquerque, New Mexico. Eldorado has 2,200 students in grades 9-12. The store sells food items from local restaurants for breakfast and lunch and has sales of more than $250,000 each year. All 340 DECA members work a minimum of four weeks each year.
The Eagles Nest is a school-based enterprise at Eldorado High School in Albuquerque, New Mexico. Eldorado has 2,200 students in grades 9-12. The store sells food items from local restaurants for breakfast and lunch and has sales of more than $250,000 each year. All 340 DECA members work a minimum of four weeks each year.
In 2002, The Eagles Nest received a grant to purchase a new computerized cash register system. Items containing UPC codes were entered into the system by the student employees. All price changes are made on the computer and sent to the six cash registers in the school store. Coded products provides a detailed listing of the day’s sales, which enables better control of merchandise and facilitates ordering.
In 2002, The Eagles Nest received a grant to purchase a new computerized cash register system. Items containing UPC codes were entered into the system by the student employees. All price changes are made on the computer and sent to the six cash registers in the school store. Coded products provides a detailed listing of the day’s sales, which enables better control of merchandise and facilitates ordering.
In addition, the identification numbers for the entire student body were entered into the system. When the cashier scans a students identification, the student’s account information appears on the screen. After showing their id, students can put money on their accounts just like a debit system. They receive a detailed receipt showing their account balance.
The cash registers are linked to a computer that provides a menu of reports that can be used in planning, buying, and pricing. This detailed marketing information has greatly improved the operation of The Eagles Nest.
In addition, the identification numbers for the entire student body were entered into the system. When the cashier scans a students identification, the student’s account information appears on the screen. After showing their id, students can put money on their accounts just like a debit system. They receive a detailed receipt showing their account balance.
The cash registers are linked to a computer that provides a menu of reports that can be used in planning, buying, and pricing. This detailed marketing information has greatly improved the operation of The Eagles Nest.
Think CriticallyThink Critically
1. How can the data from the items sold be used in buying and pricing merchandise?
2. What are the advantages for both the store and its customers of the debit system used by the Eagles Nest?
3. How can the data from the new system be used to maintain inventory control?
1. How can the data from the items sold be used in buying and pricing merchandise?
2. What are the advantages for both the store and its customers of the debit system used by the Eagles Nest?
3. How can the data from the new system be used to maintain inventory control?
Run the StoreCash HandlingRun the StoreCash Handling
Chapter 4 Lesson 1Chapter 4 Lesson 1
Journal EntryJournal Entry
Date: 1/7/2010 Competencies:
8130. 8145.
Objectives: The student will identify the procedures for handling
cash, describe the different types of checks and explain the acceptance of credit and debit transactions.
Question: Why is knowing how to run a cash register and
handle money a serious responsibility?
Date: 1/7/2010 Competencies:
8130. 8145.
Objectives: The student will identify the procedures for handling
cash, describe the different types of checks and explain the acceptance of credit and debit transactions.
Question: Why is knowing how to run a cash register and
handle money a serious responsibility?
Open for BusinessOpen for Business
Correct handling of cash affects the store’s bottom line. If cash is handled correctly with no errors, profits will not be lost. If cashiers are careless or feel indifferent about the way they handle cash, checks and credit transactions, losses will be greater and profits will be less.
Correct handling of cash affects the store’s bottom line. If cash is handled correctly with no errors, profits will not be lost. If cashiers are careless or feel indifferent about the way they handle cash, checks and credit transactions, losses will be greater and profits will be less.
The Eatery is a school store that uses optical scanning to record sales transactions. The cashier passes the item over the scanner so that it can read the bar codes on the product packaging. Sometimes the system fails, and the data on the bar codes must be entered manually. The cashier must carefully enter the data from the bar code to make sure that there are no errors in the transaction. Incorrectly entering the data could result in overcharging or undercharging.
The Eatery is a school store that uses optical scanning to record sales transactions. The cashier passes the item over the scanner so that it can read the bar codes on the product packaging. Sometimes the system fails, and the data on the bar codes must be entered manually. The cashier must carefully enter the data from the bar code to make sure that there are no errors in the transaction. Incorrectly entering the data could result in overcharging or undercharging.
Think CriticallyThink Critically
What are some important things to keep in mind while handling cash, checks and credit transactions and serving customers?
What are some important things to keep in mind while handling cash, checks and credit transactions and serving customers?
Handling CashHandling Cash
Numerous factors can account for cash losses in the school store
Maintaining a well-organized cash drawer encourages efficiency and helps prevent mistakes when making change
Removing excess cash helps safeguard against loss from theft
Numerous factors can account for cash losses in the school store
Maintaining a well-organized cash drawer encourages efficiency and helps prevent mistakes when making change
Removing excess cash helps safeguard against loss from theft
The Cash RegisterThe Cash Register
The cash drawer is known as a till When a customer pays for an item, the
cash or check is placed into the till The two major reasons for using a cash
register are to keep an accurate record of sales and to provide a safe, convenient place to keep money and checks
The cash drawer is known as a till When a customer pays for an item, the
cash or check is placed into the till The two major reasons for using a cash
register are to keep an accurate record of sales and to provide a safe, convenient place to keep money and checks
Recording SalesRecording Sales
Electronic cash registers and point-of-sale terminals are two of the most common retail systems
Depending upon the type of register used you can key in information relating to departments, type of transaction, salesperson identification, customer and vendor profiles, inventory and much more
Electronic cash registers and point-of-sale terminals are two of the most common retail systems
Depending upon the type of register used you can key in information relating to departments, type of transaction, salesperson identification, customer and vendor profiles, inventory and much more
Tips for Handling CashTips for Handling Cash
Correct cash handling affects the bottom line
When handling cash you should Close the drawer after each transaction Maintain an organized drawer Follow proper change-making techniques Refuse to be rushed Make sure bills aren’t stuck together Count cash as many times as necessary
Correct cash handling affects the bottom line
When handling cash you should Close the drawer after each transaction Maintain an organized drawer Follow proper change-making techniques Refuse to be rushed Make sure bills aren’t stuck together Count cash as many times as necessary
Count-Forward Method for Making ChangeCount-Forward Method for Making Change The procedure for the count-forward
method for making change is as follows: Announce the amount of the sale clearly to
the customer Take the customer’s money and announce
the amount they give you Place the cash on the register Remove the change due from the cash
drawer, counting forward to yourself, using the smallest to largest coins first, then bills
The procedure for the count-forward method for making change is as follows: Announce the amount of the sale clearly to
the customer Take the customer’s money and announce
the amount they give you Place the cash on the register Remove the change due from the cash
drawer, counting forward to yourself, using the smallest to largest coins first, then bills
Repeat the sale to the customer
Count change back correctly to the customer, count coins first, then bills
Wait for the customer’s acknowledgement, and then place the tendered money into the cash drawer and close the drawer
Repeat the sale to the customer
Count change back correctly to the customer, count coins first, then bills
Wait for the customer’s acknowledgement, and then place the tendered money into the cash drawer and close the drawer
Check PointCheck Point
Name two ways to enter a purchase when operating a cash register.
Name two ways to enter a purchase when operating a cash register.
ChecksChecks Six types of checks are often used in
making a sales transaction, but only three are commonly accepted
Types of Checks Personal Checks Money Order Traveler’s Checks Payroll Checks Treasury Checks Business Checks
Six types of checks are often used in making a sales transaction, but only three are commonly accepted
Types of Checks Personal Checks Money Order Traveler’s Checks Payroll Checks Treasury Checks Business Checks
Personal ChecksPersonal Checks
A personal check is made payable to your school or school store
There are three parties involved in the writing of a check
You should obtain the customer’s photo ID and match the signature
You should accept a personal check for the amount of the sale only
A personal check is made payable to your school or school store
There are three parties involved in the writing of a check
You should obtain the customer’s photo ID and match the signature
You should accept a personal check for the amount of the sale only
Money OrderMoney Order
The money order is a form of payment that may be purchased from a bank, post office, or convenience store
Money orders should be made payable to your school
You should make sure that the person presenting the money order signs it and that the dollar amount printed does not exceed the stated limit
The money order is a form of payment that may be purchased from a bank, post office, or convenience store
Money orders should be made payable to your school
You should make sure that the person presenting the money order signs it and that the dollar amount printed does not exceed the stated limit
Traveler’s ChecksTraveler’s Checks
A traveler’s check is a special kind of check that is accepted almost anywhere in the world
Before accepting a traveler’s check you should ask for an ID
Then you should have the customer sign the check in your presence and compare signatures
A traveler’s check is a special kind of check that is accepted almost anywhere in the world
Before accepting a traveler’s check you should ask for an ID
Then you should have the customer sign the check in your presence and compare signatures
Check PointCheck Point
Identify the six types of checks used in making a sales transaction.
Identify the six types of checks used in making a sales transaction.
Accepting CreditAccepting Credit
Since 1950 credit cards have enabled consumers to buy now and pay later
Examples of credit cards include Visa, Mastercard, Discover and American Express
Another form of credit is the signature charge, which is an in-house credit extended to customer you know and trust
Since 1950 credit cards have enabled consumers to buy now and pay later
Examples of credit cards include Visa, Mastercard, Discover and American Express
Another form of credit is the signature charge, which is an in-house credit extended to customer you know and trust
Debit CardsDebit Cards
A debit card comes in the form of an automatic teller machine card that can be used like a credit card
When a customer uses a debit card, the funds are transferred directly from the customer’s bank account to the business.
A debit card comes in the form of an automatic teller machine card that can be used like a credit card
When a customer uses a debit card, the funds are transferred directly from the customer’s bank account to the business.
Check PointCheck Point
What is the difference between a credit card and a debit card?
What is the difference between a credit card and a debit card?
Check OutCheck Out1. Who is responsible for billing signature charge
customers? a. The school storeb. The bankc. The travel and entertainment companyd. None of the above
2. Money placed in the cash register is contained in a(n)a. Cash drawerb. Metal cash boxc. Tilld. Both A and C
1. Who is responsible for billing signature charge customers?
a. The school storeb. The bankc. The travel and entertainment companyd. None of the above
2. Money placed in the cash register is contained in a(n)a. Cash drawerb. Metal cash boxc. Tilld. Both A and C
3. Why should cashiers handle one change-making transaction at a time?
4. How would you handle the following sales transaction?
You are a cashier in the school store. A customer makes a purchase and uses a traveler’s check that has been endorsed (signed) twice before it is presented to you.
5. Why is it important to understand the count-forward method of making change even if your school store uses registers that automatically compute the change due to customers?
3. Why should cashiers handle one change-making transaction at a time?
4. How would you handle the following sales transaction?
You are a cashier in the school store. A customer makes a purchase and uses a traveler’s check that has been endorsed (signed) twice before it is presented to you.
5. Why is it important to understand the count-forward method of making change even if your school store uses registers that automatically compute the change due to customers?
Run the StoreBasic Housekeeping
Run the StoreBasic Housekeeping
Chapter 4 Lesson 2Chapter 4 Lesson 2
Journal EntryJournal Entry
Date: Competencies: Objectives:
The student will explain procedures for maintaining the cash drawer and discuss steps for proper store maintenance.
Question: Why are housekeeping tasks important in a school
store?
Date: Competencies: Objectives:
The student will explain procedures for maintaining the cash drawer and discuss steps for proper store maintenance.
Question: Why are housekeeping tasks important in a school
store?
Open for BusinessOpen for Business
As a strategy to monitor shortages and overages in the school store, students at Redford’s Market in Detroit use a cashier’s diary. The cashier’s diary is used to record each cashier’s time in and time out and the amount of money in the cash drawer when the cashier reports to work and goes off duty. This strategy also targets the time and the cashier’s name when a shortage or overage occurs.
As a strategy to monitor shortages and overages in the school store, students at Redford’s Market in Detroit use a cashier’s diary. The cashier’s diary is used to record each cashier’s time in and time out and the amount of money in the cash drawer when the cashier reports to work and goes off duty. This strategy also targets the time and the cashier’s name when a shortage or overage occurs.
When the cashier reports to work, he or she counts the opening cash fund and records that amount in the diary. The amount of the opening cash fund should be aligned with that of the last cashier on duty. There may be times when a shortage or overage shows. Finally, after closing, the cashier notes the time out and the amount in the cash drawer and records this information in the diary.
Create a cashier’s diary form that could be used in our school store.
When the cashier reports to work, he or she counts the opening cash fund and records that amount in the diary. The amount of the opening cash fund should be aligned with that of the last cashier on duty. There may be times when a shortage or overage shows. Finally, after closing, the cashier notes the time out and the amount in the cash drawer and records this information in the diary.
Create a cashier’s diary form that could be used in our school store.
Cash Drawer MaintenanceCash Drawer Maintenance
At the beginning of the workday, the cashier will start with an amount of money in the cash register called the
opening cash fund A business needs to be able to make
change for the first few customers
At the beginning of the workday, the cashier will start with an amount of money in the cash register called the
opening cash fund A business needs to be able to make
change for the first few customers
Opening ProceduresOpening Procedures
Count the coins and cash in the drawer by denominations
Record the total amount for each denomination on the cash drawer tally form in the Beginning column
Place coins and currency in the proper compartments
Add the denomination totals accurately Indicate whether the opening cash fund is
balanced
Count the coins and cash in the drawer by denominations
Record the total amount for each denomination on the cash drawer tally form in the Beginning column
Place coins and currency in the proper compartments
Add the denomination totals accurately Indicate whether the opening cash fund is
balanced
Daily Cash FlowDaily Cash Flow
As a cashier you must watch the cash drawer carefully during the day to be sure you have enough coins and currency available to make change
You should also avoid having large amounts of cash in the drawer
As a cashier you must watch the cash drawer carefully during the day to be sure you have enough coins and currency available to make change
You should also avoid having large amounts of cash in the drawer
Closing ProceduresClosing Procedures
At the close of the day, the cashier must account for the day’s sales and the money in the cash drawer
At the end of the day the cash in the register along with any opening cash can be reconciled to the sales on the tape
At the close of the day, the cashier must account for the day’s sales and the money in the cash drawer
At the end of the day the cash in the register along with any opening cash can be reconciled to the sales on the tape
Reconcile the CashReconcile the Cash
In the Ending Column, record the opening cash
Record the amount of sales for the day from the audit tape on the Add total sales line
Add the opening cash fund to the total sales. Record this amount on the subtotal line
In the Ending Column, record the opening cash
Record the amount of sales for the day from the audit tape on the Add total sales line
Add the opening cash fund to the total sales. Record this amount on the subtotal line
Count the coins, currency and checks in the drawer. Record the amounts on the appropriate lines
Add the total cash and checks. Record this amount on the total cash in the drawer line. This figure should be the same as the amount you recorded on the cash to be accounted for line
If the drawer has been proved (even), deduct the amount of your opening cash fund from the total cash in the drawer to obtain the amount of deposit
Count the coins, currency and checks in the drawer. Record the amounts on the appropriate lines
Add the total cash and checks. Record this amount on the total cash in the drawer line. This figure should be the same as the amount you recorded on the cash to be accounted for line
If the drawer has been proved (even), deduct the amount of your opening cash fund from the total cash in the drawer to obtain the amount of deposit
Check PointCheck Point
What factors determine the amount of the opening cash fund?
What factors determine the amount of the opening cash fund?
Store MaintenanceStore Maintenance
Make sure that the level of lighting in the store is neither too bright or too dim. Replace burnt out bulbs
Make sure that aisles are free of boxes and clutter to avoid safety hazards
Create signs in the store that tell customers where to find merchandise
Take a daily 10-15 minute tour around the store to ensure that the sales floor is ready for business
Make sure that the level of lighting in the store is neither too bright or too dim. Replace burnt out bulbs
Make sure that aisles are free of boxes and clutter to avoid safety hazards
Create signs in the store that tell customers where to find merchandise
Take a daily 10-15 minute tour around the store to ensure that the sales floor is ready for business
Make sure displays are clean, neat and well decorated to help attract customers
Empty hanger boxes if your store sells clothing
Vacuum or sweep the floor at the end of the workday
Dust shelves and clean mirrors, doors and display cases and racks
Straighten underneath the counters Straighten and label drawers
Make sure displays are clean, neat and well decorated to help attract customers
Empty hanger boxes if your store sells clothing
Vacuum or sweep the floor at the end of the workday
Dust shelves and clean mirrors, doors and display cases and racks
Straighten underneath the counters Straighten and label drawers
Clean around the gift wrap desk Spot mop areas that need it Organize the stock room to make merchandise
easier to locate Report any unsafe equipment or unsafe store
hazards Straighten and size clothing on racks or
merchandise in display cases
A pleasant retail environment will have a positive effect on customers and, in turn, on sales!
Clean around the gift wrap desk Spot mop areas that need it Organize the stock room to make merchandise
easier to locate Report any unsafe equipment or unsafe store
hazards Straighten and size clothing on racks or
merchandise in display cases
A pleasant retail environment will have a positive effect on customers and, in turn, on sales!
Check PointCheck Point
Why do most people return to the same stores to shop?
Why do most people return to the same stores to shop?
Check OutCheck Out1. What should the cashier do if he or she thinks that
an error has been made in counting change back to a customer?
a. Ignore the instinctb. Give the customer the excess changec. Take the change back and start overd. Tell the customer to have a nice day
2. If the opening cash fund is short or over, the cashier should
a. Report the discrepancy immediatelyb. Record the discrepancy on the cash drawer tally formc. Put a note in the cash drawerd. Both A and B
1. What should the cashier do if he or she thinks that an error has been made in counting change back to a customer?
a. Ignore the instinctb. Give the customer the excess changec. Take the change back and start overd. Tell the customer to have a nice day
2. If the opening cash fund is short or over, the cashier should
a. Report the discrepancy immediatelyb. Record the discrepancy on the cash drawer tally formc. Put a note in the cash drawerd. Both A and B
3. Describe the opening and closing procedures from a cashier’s perspective.
4. Explain how proper store maintenance can improve the retail environment and provide customers with a feeling of comfort, familiarity, and goodwill.
3. Describe the opening and closing procedures from a cashier’s perspective.
4. Explain how proper store maintenance can improve the retail environment and provide customers with a feeling of comfort, familiarity, and goodwill.
Run the StorePolicies and Procedures
Run the StorePolicies and Procedures
Chapter 4 Lesson 3Chapter 4 Lesson 3
Open for BusinessOpen for Business
The students at Western International High School in Detroit fully understand that the goal of managing a school store is to put operational plans into action. The plans that they have developed govern the day-to-day operations of their school store, Strictly Western. To ensure consistency in the store operation, a store policy manual was created and is distributed to each employee at the beginning of the school year.
The students at Western International High School in Detroit fully understand that the goal of managing a school store is to put operational plans into action. The plans that they have developed govern the day-to-day operations of their school store, Strictly Western. To ensure consistency in the store operation, a store policy manual was created and is distributed to each employee at the beginning of the school year.
School store employees must also participate in a two-week orientation where they receive training on all phases of store operations. At the end of the training period, employees are assessed on key concepts and must pass the test with at least 80-percent accuracy before working in the store
Create two policies that deal with using credit for a school store manual.
School store employees must also participate in a two-week orientation where they receive training on all phases of store operations. At the end of the training period, employees are assessed on key concepts and must pass the test with at least 80-percent accuracy before working in the store
Create two policies that deal with using credit for a school store manual.
Operating Policies and ProceduresOperating Policies and Procedures For the school store to operate smoothly,
policies and procedures must be established to ensure consistency in the way things are done and how people are treated
Policies are general statements of intent about how to run your store
Procedures refer to the processes or steps used for carrying out the policies
For the school store to operate smoothly, policies and procedures must be established to ensure consistency in the way things are done and how people are treated
Policies are general statements of intent about how to run your store
Procedures refer to the processes or steps used for carrying out the policies
Personnel and PoliciesPersonnel and Policies
Store Manager Opening and closing policies
Personnel Manager work schedules and training policies
Cashier Sales transactions and cash drawer policies
Sales Associate - customer service policies Bookkeeper - accounting system policies Visual Merchandiser - promotional policies
Store Manager Opening and closing policies
Personnel Manager work schedules and training policies
Cashier Sales transactions and cash drawer policies
Sales Associate - customer service policies Bookkeeper - accounting system policies Visual Merchandiser - promotional policies
Check PointCheck Point
Explain the difference between policies and procedures.
Explain the difference between policies and procedures.
Store Policy ManualStore Policy Manual
A school store manual should outline all of the critical information needed for work
It serves as a guideline of what is expected of every employee
A school store manual should outline all of the critical information needed for work
It serves as a guideline of what is expected of every employee
The manual should include: Mission Statement Hours of Store Operations Credit Policies Return Policies Customer Services Loss Prevention Safety Procedures Job Titles and Responsibilities
The manual should include: Mission Statement Hours of Store Operations Credit Policies Return Policies Customer Services Loss Prevention Safety Procedures Job Titles and Responsibilities
Employee evaluation and problem resolution procedures
Employee shopping procedures, including discounts, charges, and layaways
Standards regarding employee appearance and conduct
Career development and training
Employee evaluation and problem resolution procedures
Employee shopping procedures, including discounts, charges, and layaways
Standards regarding employee appearance and conduct
Career development and training
Developing PoliciesDeveloping Policies
1. Review your operational process2. Check the competition3. Ask customers for feedback4. Develop policy statements
The purpose of establishing policies is to simplify the daily operation of your store!
1. Review your operational process2. Check the competition3. Ask customers for feedback4. Develop policy statements
The purpose of establishing policies is to simplify the daily operation of your store!
Check PointCheck Point
What are the four steps you should follow when developing policies for your school store?
What are the four steps you should follow when developing policies for your school store?
Check OutCheck Out
1. ____ are the general statements of intent about how to run your school store.
a. Regulationsb. Rulesc. Operational plansd. policies
2. ____ refer to specific processes and steps.a. Rulesb. Policiesc. Regulationsd. procedures
1. ____ are the general statements of intent about how to run your school store.
a. Regulationsb. Rulesc. Operational plansd. policies
2. ____ refer to specific processes and steps.a. Rulesb. Policiesc. Regulationsd. procedures
3. Your school store does not have any policies in place to govern daily operations. Customers are asking a lot of questions, and your answers differ each day. How can you develop policies and procedures that will ensure consistency in operating your school store?
4. Make a list of operational policies that would be applicable to your school store.
3. Your school store does not have any policies in place to govern daily operations. Customers are asking a lot of questions, and your answers differ each day. How can you develop policies and procedures that will ensure consistency in operating your school store?
4. Make a list of operational policies that would be applicable to your school store.