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9-20
59.
Melanie, a salesperson for printers and scanners, is sending a proposal for printers to the
home office of Helix Services in Cedartown. To convince the executives in Cedartown that
the local Vinson Mountain branch office needs the printers and copiers she is selling,
Melanie would most likely:
60.
Jorge is developing a presentation for a customer. He wants to show the customer how his
product will meet the prospect's needs and how it is different from the offerings of
competitors. Jorge is developing a(n):
61.
Salespeople can strengthen their presentations by showing the prospect that the cost of
the proposal is offset by added value; this process is called:
62.
Identify a common method of quantifying a solution for a customer.
63.
Sonya showed the office manager at Arunden Solutions how he could pay for the new
copier she was selling by bringing more of Arunden's printing jobs in-house, saving money
that had previously been spent on local printers. Sonya is using _____ to quantify the
solution.
64.
Jordan, the owner of a motorcycle firm, wants to reduce the cost of maintaining the
existing equipment of his firm. Joe, a salesperson, recommends a new type of equipment
to reduce the maintenance costs. The cost of the new equipment is $50,000, but it would
save Jordan $75,000 in total. If Jordan decides to purchase the new equipment, then his
return on investment will be:
65.
The _____ is the net profits expected from a given investment, expressed as a percentage
of the investment.
66.
Jay purchases new capital equipment at his motorcycle factory. The new equipment costs
$150,000, and the net savings he is likely to make is $75,000. Calculate Jay's return on
investment (ROI).
67.
By investing in a John Deere PowerTech engine for $3,200, a pallet manufacturer was able
to show a net savings of $500 in annual maintenance costs. Calculate the return on
investment for the engine.
68.
The profit margin on the sale of a good is 20 percent, and the selling price of the good is
$5,000. Calculate the cost of the good.
69.
The payback period:
70.
Jessica is investing in a capital equipment for her printing press. She wants to know how
long it will take for her investment to be returned in the form of savings. The new
equipment costs $600,000, and the maintenance costs of the new equipment will save her
$120,000 per year. The payback period is _____.
71.
Goodman Woodworks has recently purchased a new saw costing $14,000. Because of a
revolutionary new cutting blade, the new saw will not cause the veneer to splinter and will
make clean cuts. This will save the firm $1,200 each year, which goes in wastage.
Calculate the payback period for the $14,000 investment.
72.
Miguel sells high-end computers to clients in his neighborhood. The profit margin is 20
percent, and the cost of each unit of computer is $10,000. The selling price of each unit
must be:
73.
The _____ of an investment is the net value today of future cash inflows minus the
investment.
74.
A sportswear manufacturer usually keeps an average of 2,000 units of footwear in stock.
The total sale is 60,000 units. The inventory turnover is _____.
75.
The _____ is the return a buyer would have earned from a different use of the same
investment capital.
76.
The cost of a good is $1,500. A seller sells it at a markup of $500. The profit margin is:
77.
Tonya is a manager of a retail clothing store. A sales rep calling on her offers overnight
delivery on all re-orders at no extra shipping cost. This will allow Tonya to carry fewer
items in the store than earlier and save money by increasing her:
78.
Ramiro, the owner of a supermarket, decides to keep relatively high levels of inventory
even though it is expensive. Ramiro most likely thinks that the cost of _____ is greater than
the benefits of increasing his turnover rate.
79.
Fiona, the manager of a retail store, wants to know whether she is maximizing her return
on space investment. She will have to calculate the _____ for the area of the store.
80.
Which of the following is recommended as a good way to deal with the jitters when
making a sales presentation?
Short Answer Questions
81.
Why would a salesperson for a wholesale flower distributor give the prospective client a
bouquet of fragrant lilacs to smell and admire during his or her sales presentation?
82.
When making a sales presentation, why should a salesperson handle his or her product
carefully?
83.
What are handouts, and how can they be used in helping buyers retain information?
84.
What are electronic whiteboards?
85.
What is a simple definition of a salesperson's portfolio?
86.
Lily wants to make sure that her customers remember all the benefits of using her
company's water reclamation system long after her presentation is over. Which type of
visual aid should she use for this purpose?
87.
In developing a written sales proposal, one of the tasks of a salesperson is to provide a
description of the current situation in relation to the proposed solution. What is the
simplest method for quantifying this solution?
88.
Devon invests $750,000 in equipment for his steel firm. He calculates that this investment
would save his firm $150,000 in maintenance costs. Calculate the return on investment
(ROI).
89.
To solve a problem with a leaking refrigerator valve, a convenience store owner can either
replace the valve or continue to add more refrigerant to the system as needed. If he
chooses to replace the valve, how would you classify the money he was going to invest in
more refrigerant?
90.
Jay divides the annualized cost of goods at his firm by the average inventory at cost. What
is Jay calculating?
Essay Questions
91.
What is the simplest nonverbal communication a salesperson can use to create a sense of
product value?
92.
How can word pictures, stories, and humor be used to improve a sales presentation?
93.
What are the benefits of using visual aids in a sales presentation?
94.
Colleen is preparing a presentation for a potential donor for the new building being
constructed in her university. She is considering using visual aids in her presentation.
Which visual aids would be most appropriate for her audience?
95.
What determines the effectiveness of testimonials?
96.
Tarik is preparing a presentation for a hospital about his company's new linear accelerator
cancer treatment machine. Since the machine is large and expensive to bring in and
demonstrate, he is unsure which media to use in his presentation. Which visual aid would
be most appropriate for his needs?
97.
Other than reducing the chances that a product demonstration will fail, what other
considerations should a salesperson take into account when developing a demonstration?
98.
List and describe the parts of a written proposal.
99.
How could the owner of a movie theater calculate the profitability of buying a new self-
buttering popcorn machine today, rather than postponing the purchase?
100.
Discuss how the concept of opportunity cost can be used to quantify the solution during a
sales presentation.
