Vocabulary

Key Terminology

Purchase that offers an optimal combination of delivery, price, quality and other benefits in meeting a buyer's specific need.

Buy One Get One (BOGO) is a common discount term. This promotion can be applied in two ways: There’s buy one get one free or buy one get the 2nd item % off.

Your break-even point is the point at which total earning/income equals total costs or expenses. At this point there is no profit or loss - in other words, you 'break even'.

The Goods and Services Tax (GST) in Australia is a value-added tax on the supply of goods and services. In Australia, the GST is levied at a flat rate of 10% on most goods and services, apart from the GST-exempt items (which include basic necessities such as milk and bread).

GST-inclusive implies that the price of a good or service includes tax. The tax is not separately charged from the customer. Thus, GST-inclusive means that GST is included in the price of the product.

When an article is sold for less than what it costs , we say that there is a ‘loss’. When the selling price is equal to the cost price, then there is neither profit nor loss.
Loss = Cost Price – Selling Price

Multi-buy promotions (i.e., “2 for the price of 1”) is a good option if you want to clear your inventory. The success of multi-buys largely depends on the types of products that are bought/sold.

Multi-save promotions include offerings like:

Conditional promotions on the other hand, include:

The percentage off deal (e.g. “20% off” or “50% off”) is one of the most popular — and effective — types of promotions.
Percentage discount = discount retail price× 100%.
Profit or Loss per cent = [(Total Profit/Loss) / Cost Price] x 100

Pre-GST means that the price of a good or service does not include tax. Tax is separately charged over and above the price of the product. The term ‘plus taxes’ is used in many cases to indicate that the cost presented is pre-GST.

When an article is sold for more than what it costs, we say that there is a ‘profit’ or gain.
Profit = Selling Price – Cost Price

Unit pricing is a labelling system that allows you to compare prices when buying groceries. By using standard units of measurement you can easily compare the prices of products, regardless of their size or brand. Unit pricing means you do not have to make complicated calculations to work out which product offers you the best value.

An alternative to “percent-off” deals, this promotion involves discounting items by a flat dollar amount (e.g., $5 off or $20 off).

When solving financial problems, students should be encouraged to write a few key words on the left-hand side of the equals sign to identify what is being found in each step of their working, and to conclude with a statement in words.
Students' understanding may be increased if they write calculations in words first, before substituting the appropriate values, e.g. percentage discount = discount retail price × 100%
In calculating any percentage change, the increase or decrease is expressed as a percentage of the first value. Buying comes before selling , thus, profit or loss is expressed as a percentage of the buying price ( i.e., the cost price ) and not of the selling price.
Students may need assistance with the subtleties of language used in relation to financial transactions, e.g. the difference between '$100 has been discounted by $10' and '$100 has been discounted to $10'.
The difference between the GST-inclusive price, the pre-GST price, and the amount of the GST itself should be made explicit.

References:

*https://www.vendhq.com/blog/sales-promotion/

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