Sales are the activities associated with the sale or purchasing of products at a certain targeted rate. The sale of a product to someone on credit is called a sale. The term’sale’ is derived from the French word sale, which means payment. Sales figures for any company would be affected by the supply and demand of the products being sold. There are various other terms and concepts that are related to sales. Following is a list of some common ones:
Gross Sales refer to the total revenue an organization makes during a particular transaction. This figure includes both net sales and gross sales. Net sales refer to the total revenue an organization makes minus the total cost of good sold. gross sales refer to the total revenue an organization makes during a particular transaction. This figure includes both net sales and gross sales.
Marketing refers to the process by which a business sells its products to the buyer. Sales and marketing are two different processes. Professional selling is one type of sales. Other types of sales are consulting sales, advertising sales and promotional sales.
A sales transaction is a specific transaction between a seller and a buyer. The sale involves more than just the parties involved in the transaction. There are three major parties in any sales transaction: the buyer, the seller and the service provider or middleman. The buyer is the person that makes the sale; the seller is the person who makes the agreement with the buyer on price, the date and the terms of the sale; and the middleman is the institution that facilitates the transaction. The buyer and the seller are usually one in the same physical location, although sometimes a third party may also be involved in the transaction.
Net sales refer to those sales that do not include the price paid by the buyer for the product sold. This is referred to as gross sales. Net sales can include the price paid by the buyer for the product or services sold. The gross sales refer to the total of all the prices paid by the buyer for the services or products sold.
The marketing and sales functions of a business can result in the creation of new business and increased profits. If properly implemented, these two business functions can be the backbone for any good, profitable organization. There are many examples of successful organizations that started out as two separate companies but over time added marketing departments. It is important that any business incorporates both of these important business functions for success.