Sales Application Questions 1. Many companies offer customers various discounts from their normal or list price to entice them to buy. Discuss the main types of discounts offered. 2. Should the salesperson mention a discount at the beginning, middle, or end of a sales presentation? Why? 3. It cost a company $6 to manufacture a product that it sold for $10 to a wholesaler who sold it to a retailer for $12. A customer of the retailer bought it for $24. What was the markup on selling price for each member of this product's channel of distribution? 4. Determine the markup of a product that costs your customer $1 with the following potential suggested resell prices: $1.25,$1.50, $2. How much profit would the wholesaler or retailer make selling your product at each of the three suggested resell prices? 5. Assume you sell hardware supplies to grocery, drug, and hardware retailers. Tomorrow, you plan to call on the Real Hardware chainyour largest customer. To reach your sales quota for this year, you must get a large order. You know the purchaser will buy something; however, you want him to purchase an extra amount. Furthermore, you know the company is 120 days overdue on paying for what you shipped months ago, and your company's credit manager will not ship more merchandise until the company pays the bill. How would you handle the sales call? Include in your answer where you would discuss the overdue-bill problem in your sales presentation. Also include what you would do if the buyer said, "I haven't paid for my last order yet! How can I buy from you today?" 6. List and define five commonly quoted types of prices. what percentage the cost of the product has been reduced as in situation (a) explain what type of discount is used, (b) determine by situation. a. Bustwell Inc., a regional business computer firm, is attempting to sell a new computer-operated gasoline pump meter to a convenience store chain, Gas 'N' Go. The device will help reduce gasoline theft, give an accurate record of each sale, and aid in $45,000. The Gas ' N ' Go chain owns 43 store high. The cost of each computer is $1,000, but you could sell Gas 50 computers for Doubt Security Products, you believe your extensive line of a beak-ins in the past three months. As a salesperson for Noan appointment with the manager at the Storage B line of alarm systems and locks could benefit the warehouse greatly. You make that the warehouse currently uses poor-quality locks and bearly next week. During your preparation for the sales call, you discover consisting of 150 Sure-Bolt deadbolt locks (for the company's security system. You plan to offer the manager a security package system costing $5,000. The terms of the sale are 2/10, a pativis 150 private storage rooms) at a price of $10 each, and a new alarm alone were changed to 5/10, net 30 (and the locks remained 2/10, would the total cost change if the terms of the alarm system Bin takes 25 days to pay for the purchase? c. You are a salesperson for Madcap Arcade Games, selling video games and pinball machines. A local business wants to open an arcade and would like to buy a new game about every two weeks. A new game costs $3,000. You can offer a 5 percent discount (an end-of-year rebate) if at least 25 games are purchased from you during the next year. What will the discount be in dollars? d. The XYZ company is having its year-end sales push. As a salesperson for XYZ, a manufacturer of consumer goods such as toothpaste, shampoo, and razor blades, you have been instructed to give a "buy 11 , get 1 free" discount to half of your accounts. The remainder of your accounts, because of their small volume, are offered 10 percent off all purchases. Compare the two situations. Which is the better deal