2. Types of charges and discounts
associated with purchases.
Credit card fee (percent of sales based on a sliding scale)
Travel and entertainment cards is slightly higher than bank cards
1.79% (MC/Visa) - 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
3. 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 Tax Rate
Zone
A 15%
B 7%
Rest of World 0%
4. 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 Shipping Rate
Zone
A $15
B $10
Rest of World $25
5. 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
6. 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.
7. 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
8. What is a special order?
The request of an item not
normally in stock or carried at a
store
9. 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.
10. 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?
11. 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
12. 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.
13. 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.
14. 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
15. 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
16. 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
17. 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
18. Procedures for processing
telephone orders.
Intro
Find need
Recommend product/Upselling
Overcoming objections
Closing sale by
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