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a using a search engine d typing an email address

b logging on e automatic logging off

c registering with an ISP f surfing and trying to enter a particular website

2. Find expressions in B opposite with the following meanings.

1. traditional shops (two possibilities)

2. selling on the Internet (two possibilities)

3. where you put your items before you purchase them

4. physical delivery of goods to Internet customers

5. how many times a web page is viewed

3. What type of e-commerce are the following? Choose from B2B, B2C, or B2G.

1. Private individuals can rent a car without going through a call centre.

2. The city is looking for construction companies to build a new airport. There are hundreds of pages of specifications you can obtain from the city authorities.

3. Car companies are getting together to buy components from suppliers in greater quantities, reducing prices.

4. Small businesses can get advice about wages, taxation, etc.

5. Members of the public can buy legal advice from law firms.

6. It can seem very convenient, but if you’re out when the goods you ordered arrive at your house, you’re in trouble!

Do you use email? Do you surf the Internet?

Do you shop on the Internet? What are the advantages and disadvantages? Do you have any experience of B2B or B2G?

Sales and costs

A sales meeting

Sales 1

Sales describes what a business sells and the money it receives for it. Denise van Beek of Nordsee Marine is having a sales meeting with her sales team:

‘Our sales figures and turnover (money received from sales) in the last year are good, with revenue (money from sales) of 14.5 million euros, on volume of 49 boats. This is above our target of 13 million euros. We estimate our sales growth next year at ten per cent, as the world economy looks good and there is demand for our products, so my sales forecast is nearly 16 million euros for next year. I’m relying on you!’

Sales 2

Here are some more uses of the word ‘sale’:

a make a sale: sell something b be on sale: be available to buy c unit sales: the number of things sold d Sales: a company department

e A sale: a period when a shop is charging less than usual for goods f The sales: a period when a lot of shops are having a sale

Costs

The money that a business spends are its costs:

• direct costs are directly related to providing the product (e.g. salaries).

• fixed costs do not change when production goes up or down (e.g. rent, heating, etc.).

• variable costs change when production goes up or down (e.g. materials).

• cost of goods sold (COGS): the variable costs in making particular goods (e.g. materials and salaries).

• indirect costs, overhead costs or overheads are not directly related to production (e.g. adminstration).

Some costs, especially indirect ones, are also called expenses.

Costing is the activity of calculating costs. Amounts calculated for particular things are costings

Margins and mark-ups

Here are the calculations for one of Nordsee’s boats:

• selling price = 50,000 euros

• direct production costs = 35,000 euros

• selling price minus direct production costs = gross margin = 15,000 euros

• total costs = 40,000 euros

• selling price minus total costs = net margin, profit margin or mark-up = 10,000 euros

The net margin or profit margin is usually given as a percentage of the selling price, in this case 20 per cent.

The mark-up is usually given as a percentage of the total costs, in this case 25 per cent.

a money received from sales (2 expressions)

1 figures

2	forecast
3	growth
4	revenue
5	target
6	turnover
7	volume

b sales aimed for in a particular period

c the number of things sold

d increase in sales

e statistics showing the amount sold

f sales predicted in a particular period

27.2 Match each use of the word ‘sale’ with the correct meaning (a-f) from B opposite. 1

1. didn’t pay the full price for these shoes. I bought them in a sale.

1. mean the Christine who works in Sales, not the one in Accounts.

People queued all night for the beginning of the January sales.

The model will go on sale in the UK from next March.

Nothing is more satisfying to salespeople than making a sale.