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Re: Am I being bold or stupid need help in my thinking?


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Posted by Buzzman72 on July 21, 2015 at 08:35:07 from (74.137.30.162):

In Reply to: Am I being bold or stupid need help in my thinking? posted by northeast puller on July 21, 2015 at 03:44:22:

So...what percentage of profits is the cost of taking the credit cards? I'm asking the question this way because, in my eyes, that's the fair way to increase prices. If your costs per credit card transaction pencil out to 4% of those transactions, what percent of sales are credit card vs. cash?

Just like the electric bill or the gas bill going up, the costs associated with accepting credit cards is simply a cost of doing business. It goes against your bottom line. The guy buying a $1 item pays toward your light bill the same way a guy with a $300 order pays toward your light bill...cash OR credit. The guy with the $1 item may not "use" much of your time and electricity, but he still pays.

Offering a discount for cash may also create a "perception" problem with customers. They may think you're having trouble paying your bills, and need cash to get out of a jam. That can be a negative perception, in these days of folks gambling away entire businesses at casinos and wasting their lives using illegal drugs. Just had a local garbage collection company go belly-up when the owner was arrested on drug charges, AND had been seen losing large sums at the local casino. And of course, right before the end he was offering a discount to customers who paid in cash.

just something to think about.


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