Business Sale Terms
In the world of business, both retail and otherwise, it helps for employees and even management to have a solid understanding of basic terminology relating to sales. There is a plethora of sales-related terms floating around American offices, so breaking them down into simple categories can help expedite the learning, memorization and reference processes. Some example categories are transaction types, terms of sale and other commonly used miscellaneous sales terminology.
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Sales Transaction Terminology
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Cash transactions used to be the driving force behind most day-to-day buying and selling transactions for smaller items, with checks providing security for larger deals; however, in the modern business landscape, checks have lost much of their desirability except for the area of extremely big ticket items and as a method of monthly bill payment. Cash, on the other hand, is still accepted virtually everywhere, but in this current age of convenience, more consumers are opting to pay via either debit or credit cards. A debit transaction takes funds at real time -- or as close to it as possible -- directly from the customer's bank account to cover the purchase. In order to accept debit payments, retailers need to have a functional debit point of sale device, which varies in cost and may also allow credit card acceptance functionality. Payment by credit card offers consumers a similar level of convenience to debit cards, although a credit card is subject to purchase interest and might end up costing the customer more in the long term. An advantage to credit card transactions is that in the absence of a high-tech point of sale, the old carbon paper imprint and signature method of transaction processing provides a low-investment, low-tech alternative for smaller retailers looking to add an alternative to cash to their business sales transaction model.
Terms of Sale Explained
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The terms of sale set the framework for future dealings between the customer and the business and need to include the final price, method of payment used -- or deferred payment type if any -- and the taxes levied, if any are applicable. The receipt should also indicate the business's return policy, or in the absence of a return policy, clearly state that all sales are final. The receipt should also include any shipping information relevant to the purchase if the transaction is made from a remote location or online, rather than in a storefront. Taxes are a critical component to the terms for sale and may be levied on the federal, state or municipal level depending on the actual nature of the tax. It is illegal to evade taxes, therefore sales staff should make a concerted effort to account for all taxes due, or risk being left to pay them later out of the overall revenue.
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Common Promotional Sales Terminology
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A common term found in business promotional material is the acronym O.A.C. -- on approved credit -- and refers to the credit score check a business conducts to verify the profitability of extending credit, usually on expensive items, to a prospective customer. No money down is a promotional term used to describe an extension of consumer credit in which the customer does not need to pay for any of the initial purchase price. Typically, no money down promotions are targeted at the most reliable segment of possible customers and should be reserved for customers with more positive credit scores. Credit scores can be a confusing concept to the uninitiated. A low credit score, such as 300, indicates a negative credit history, and the highest possible score is a solid 850, a rate so high that most who could attain it would not be asking for store credit. Sit down with management to determine which credit scores merit which sales actions on the sales floor.
The Importance of Knowing Sales Terminology
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For the average working American, knowing basic sales terminology not only makes them a better informed consumer, it also serves as a simple but helpful employable skill. Knowing the sub language of the sales world may allow a job seeker to stand out in the eyes of a prospective client. From a management point of view, potential employees that know sales terminology will require less training and therefore less investment before they start turning a profit, making them a more attractive hire. Managers themselves need to know the basic terms relating to sales if only so they can make informed decisions about policy and correct problems that arise.
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References
- Photo Credit credit card and hand image by Warren Millar from Fotolia.com
