- - AGRICULTURAL CORE CURRICULUM - - (CLF1000) Core Area: AGRICULTURAL BUSINESS MANAGEMENT (CLF1550) Unit Title: SALES AND SELLING ____________________________________________________________________________ (CLF1551) Topic: AN INTRODUCTION TO SELLING Time Year(s) IN AGRICULTURE 2 hours 3 or 4 ____________________________________________________________________________ Topic Objectives: Upon completion of this lesson the student will be able to: Learning Outcome #: (*-*) - Describe the basic functions of selling in agriculture. (*-*) - Identify sales careers in agriculture. (*-*) - Discuss major advantages and disadvantages of a selling career. Special Materials and Equipment: References: Ditzenberger, R., & Kidney, J. (1986). SELLING: HELPING CUSTOMERS BUY (2nd ed.). Cincinnati, OH: South-Western Publishing. Miller, Larry E. (1979). SELLING IN AGRIBUSINESS. New York: McGraw-Hill. Resources: California Agricultural Teachers Association. (1991). CATA CURRICULA CODE. Available from: Agricultural Education Program, Career-Vocational Education Unit, California Department of Public Instruction, Sacramento, CA 94244 National FFA Foundation. (1991). FFA SELLING AND FUNDRAISING GUIDE (and Transparency Set). Available from: FFA Supply Service, P.O. Box 15160, Alexandria, VA 22309-0160. University of Missouri-Columbia. (1984). AGRICULTURAL BUSINESS SALES AND MARKETING: Instructor's Guide (Unit V: Sales and Selling. Available from: Instructional Materials Laboratory, University of Missouri, 22316 Industrial Drive, Columbia, MO 65202 Evaluation: Quiz by instructor TOPIC PRESENTATION: AN INTRODUCTION TO SELLING IN AGRICULTURE A. Selling is the transaction that occurs when someone exchanges services or goods for a valuable medium of exchange such as money. There is usually some form of persuasion involved. B. The functions of selling in the field of agriculture are: 1. Selling goods and services to farmers and ranchers a. This is the largest area of sales in agriculture. b. It includes both large and small retail agribusinesses. 2. Selling for farmers and ranchers (Note: Exceptions are farmers who sell direct to consumers.) a. Sell products direct to consumers b. Sell products direct to processors c. Sell products direct to wholesalers or distributors d. Sell products to retailers 3. Providing Information a. Salespeople in the field of agriculture provide information to retailers, wholesalers, consumers, farmers, and ranchers. b. They provide information regarding new technology, cost, availability, and operation. C. Agribusiness sales occupations are categorized in the following ways: 1. By what the buyer does with the product a. Wholesalers - sell to retailers b. Retailers - sell to consumers c. Consumers - use the product 2. By how the salesperson is paid a. Commission - a certain percentage of the sale price b. Straight salary - a set amount c. Combination - both salary and commission, usually a base wage plus commission 3. Miscellaneous categories of agribusiness sales occupations a. Tangible product sales, for example: 1) Machinery and equipment 2) Seed, feed and fertilizer 3) Agricultural chemicals b. Intangible products, services, for examples: 1) Equipment and machinery repair 2) Agricultural management consulting 3) Agricultural insurancep D. Opportunities in Agricultural Sales 1. Everything everyone owns was at one time sold by someone. 2. Some agriculture salespeople sell tangible products such as feed, fertilizer, flowers, and seed. 3. Other agriculture salespeople sell intangible items such as insurance, credit, and advertising. 4. There are 12 million salespeople employed in the United States; this is about 12 percent of the total work force. a. Seven million people are employed in retail sales. b. One and one half million are employed is wholesale sales. c. One and one half million people sell real estate, insurance, and financial services. d. There are half a million salespeople for manufacturers. 2. In 1986, the U.S. Department of Labor estimated that most sales jobs will continue to increase through 1995. 3. Types of Businesses that Employ Salespeople a. Retailers - Department stores, variety stores, discount stores, and specialty shops are types of retail stores. Retailers sell to the consumer. b. Wholesalers - Sell to retailers, other wholesalers, or industrial firms. c. Manufacturers - Sell products they have made to other manufacturers or directly to wholesalers or retailers. E. Agriculture Sales Positions 1. More than 48,000 job openings are expected yearly for agricultural college graduates, 32.4 percent (16,000 jobs) in the area of sales, marketing, and merchandising representation. (Source: Employment Opportunities for Colleges Graduates in Food and Agricultural Sciences. Higher Education Programs, U.S. Department of Agriculture, Washington, DC., December, 1990.) 2. An 18 percent shortfall of people to fill agricultural sales, marketing and merchandising positions is expected. 3. Example agricultural job titles used in sales, marketing, or merchandising include: a. Sales Clerk b. Account Executive c. Advertising Manager d. Commodity Broker e. Export Sales Manager f. Food Broker g. Forest Products Merchandiser h. Grain Merchandiser i. Grain Merchandiser j. Insurance Agent k. Landscape Estimator l. Market Analyst m. Purchasing Manager n. Real Estate Broker o. Product Representative F. Who is involved in selling in an agribusiness? __________________________________________________________ ACTIVITY: Ask the students to name the people in an agribusiness who are involved in selling. Emphasize the fact that whatever position people have in an agribusines, they are directly or indirectly involved in sales. __________________________________________________________ 1. Everyone contributes to sales in an agribusiness. a. All employees contribute to the overall image of a company. 1) Appearance 2) Attitude toward customers and the company 3) Personal character 2. Every job reflects on the quality of products or services provided by an agribusiness. For example, if quality products are sold but poor service is provided, customers will be lost. 3. Every employee helps make sales by doing the most efficient job possible so that products and services can be provided at the lowest possible cost. G. Advantages and Disadvantages of a Selling Career. __________________________________________________________ ACTIVITY: Ask the students what they feel the advantages are in selling as a career. Then ask them what they consider to be the disadvantages. __________________________________________________________ 1. Advantages of Selling as a Career a. Freedom to develop a personal style of selling b. Varied activities c. Meeting new people d. Providing goods and services for people's needs e. Salespeople are usually well-known in the community. f. Good salespeople can readily find jobs. 2. Disadvantages of Selling as a Career a. Salespeople sometimes work long hours. b. They have to deal with customer dissatisfaction or slow payments. c. Income often fluctuates, especially if it depends on commissions. d. Salespeople often have to work on weekends, evenings, and holidays. e. Salespeople sometimes have to be away from home for long periods of time. __________________________________________________________ ACTIVITY: 1. Invite a professional salesperson from an agricultural business to speak to the class concerning the nature of work in agricultural sales, preparation needed, and career opportunities for high school students. 2. Assign students to shadow an agricultural salesperson for one day and then write a brief report on the duties and responsibilities of that salesperson. __________________________________________________________ QUIZ #1 - AN INTRODUCTION TO SELLING IN AGRICULTURE 1. Give a definition of selling. The statements below are either true or false. Circle "T" if the statement is true; circle "F" if the statement is false. T F 2. The largest area of sales in agriculture is providing goods and services to farmers. T F 3. Salespersons are not sources of new technology. T F 4. Farmers selling their products directly to consumers are part of selling in agriculture. T F 5. Salespersons should be able to provide information on the operation of their products. T F 6. The service manager in an agribusiness has nothing to do with selling. Give two examples of how agribusiness careers are categorized under each of the three categories. 7. By what the buyer does with the product a) _______________________________ b) _______________________________ 8. By how the salesperson is paid a) _______________________________ b) _______________________________ 9. Miscellaneous categories a) _______________________________ b) _______________________________ 10. List two advantages of a sales career. a) _______________________________ b) _______________________________ 11. List two disadvantages of a sales career. a) _______________________________ b) _______________________________ QUIZ #1 - AN INTRODUCTION TO SELLING IN AGRICULTURE - INSTRUCTOR'S KEY 1. A transaction that occurs when someone exchanges service or goods for a valuable medium of exchange such as money. 2. T 3. F 4. T 5. T 6. F Any two of the following (or others as determined by instructor) 7. Retailer Wholesaler Consumer 8. Commission Straight salary Combination of commission and salary 9. Size or type of agribusiness Training Type of product sold 10. Freedom Meeting people Community prominence Varied activities Fulfilling needs Find jobs easily 11. Long hours of work Odd hours of work Away from home Dissatisfied customers Slow payments Fluctuating income 12/5/91 JL/sg #%&C