marketing indicator 2.11

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) - 3.25% (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

the purchaser will receive 3% off if he pays the amount within 10 days . If not, amount needs to be fully paid within 30 days.

• Bulk discounts – purchasing a large quantity & getting a discount on the price. Sam’s Club, Costco, BJ’s, etc.

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

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

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.