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  • Skeptical
    replied
    Originally posted by merk
    Its not only the fact that stores are charged a rate for accepting credit cards, but what about all the overheads for accepting cash?

    Sorry, id prefer to use a piece of plastic, working in retail over the years, cash gets pretty annoying. Cash insurance, cash pickup, cashing up at the end of every night, risk of employees stealing it.

    Its a double ended sword there dude.
    Do you realize how much taxes businesses get away from paying when they accept cash? Not legal but easy to get away with... and in fact many do.

    Leave a comment:


  • merk
    replied
    Originally posted by Skeptical
    Something about these "check" cards really bother me. The credit card company basically has zero risk but still charges the merchant a 2-3% discount rate, for something I pay with basically what is CASH upfront.

    Prices go up for the consumer as a result.

    No thanks. If I have the $ with me I'll pay with cash and say "screw the bastard banks".
    Its not only the fact that stores are charged a rate for accepting credit cards, but what about all the overheads for accepting cash?

    Sorry, id prefer to use a piece of plastic, working in retail over the years, cash gets pretty annoying. Cash insurance, cash pickup, cashing up at the end of every night, risk of employees stealing it.

    Its a double ended sword there dude.

    Leave a comment:


  • Dean C
    replied
    Well i'm 18 so that's good to hear but i don't really want credit. I just want the card lol

    Leave a comment:


  • kdog316
    replied
    if you have a parent and your under 18 then they can get you a checking account and i think you can get a cc with a parent sig and yes visa or debit card that works like a cc also can be used on paypal thats what i do.

    Leave a comment:


  • rockergrrl
    replied
    Can't send it?

    Are you in the US? (can't remember right now if you are or not).

    I know I don't have a CC oh my paypal account, and I can send money.

    I know if you don't have anything attached to your account, you can receive and not send money out.

    With most credit cards, you have to be 18 in order to get one... and then half the time its hard as heck to get one when you're 18 (I know it was for me -- and I had a job that paid $2000+ month at the time). And when I finally got one, it only had a $500 limit on it.
    Last edited by rockergrrl; Thu 17th Apr '03, 2:38pm.

    Leave a comment:


  • Dean C
    replied
    Wow i'm in a situation now where i haven't got a CC and just found out on paypal that you can accpet money with a bank account but not send it - which i feel so stupid for not realising...

    What is the age on a VISA card and can it be used on paypal?

    - miSt

    Leave a comment:


  • kdog316
    replied
    i use my debit card which also works like a credit card its cool and its from wells fargo it come directly out of my checking account so i can use the card for paypal to

    Leave a comment:


  • Wayne Luke
    replied
    Those profit margins are after all associated costs. They don't reflect the markup on the product which is often times is 100% or more of the average wholesale item cost.

    For example, one of the things I sell is specialty incense. It costs me $1.50 for 100 - 11inch sticks. I then turn around and sell those stick for $1.00/12. That is over an 800% markup. Even if I sold it for $1.00/20, that is over a 300% markup. However, when I add in advertising, rent, utilities, shipping, taxes, etc... It comes down to about 25% profit.

    Other things that I sell, I can't mark up as much. For example we also sell a variety of books on Conscious Living, Wellness and Metaphysical subjects. These cost me 60% of the retail price and since their prices are predetermined by the publisher, I have to sell them at list price or below. By the time expenses are deducted, I am only making 2-3% profit on them.

    However, the books bring people into the store and while they are there, they buy $10-15 worth of Incense, some candles, maybe some tea and a pendant. So while I don't make money really on the books, the other items make up for it and I make a 5-20% profit on the sale.

    To be honest, credit card fees don't add up to a lot of the costs of running the business. For me, it is less than $150.00 a month all together. My electric bill is higher than that. Would, I prefer to not pay any fees at all? Sure I would but it is just another cost of doing business in the modern world.

    Leave a comment:


  • Skeptical
    replied
    Wayne, what you've just said I have no doubt is true. However, that doesn't address the fact that a change in profit margins across different product markets, can and will result in some change in the overall pricing. Sure the discount rate is not much in the grand scheme of things for some, but it still is something. For example, in many businesses the profit margin is 10% or even less (supermarket profit margins are somewhere in the 5% I believe). For these guys a change in 1.5-3% can mean quite a difference.

    Leave a comment:


  • Wayne Luke
    replied
    The changing of production costs will not necessarily change the cost that someone pays for an item. It is about what the market will pay and the availability of an item.

    A companies main goal is to strengthen its bottom line and to reward its stock holders. Their only concern to consumers is when they start buying somewhere else.

    I actually happen to live in a state where it is illegal to charge different prices for an item whether the customer uses cash or credit cards on most products. It includes offering cash discounts. Also, since I have been involved in a physical retail store for the last two years as a co-owner, I can tell you that the fees charged for accepting credit cards are nothing in the entire scheme of things. When we added the ability to accept credit cards and debit cards with the Mastercard and Visa logos, sales increased 400% overnight versus accepting cash and checks only. When we added American Express which has a higehr discount rate, sales increased another 75% overnight. The higher volume of sales more than accounts for any additional cost related to the item and prices did not go up because of the new services.

    A much bigger hit in the store's finances where the increases in heating and electrical costs, rising rent (rose 5% a year) and the continually rising cost of supplies. Because of those issues, if one of our suppliers would lower our wholesale cost for an item, the price in the store would stay the same. If we got items at a super steep discount, we might have a quick sale of one to three days but that is it and not on every item. We also sold books and they never went on sale no matter what our cost for them was because books are the most expensive thing to stock for a small retailer.

    As a retailer, I personally don't care how you pay for your purchases. Cash, Checks, Credit Cards it is all the same to me. I only care about making a minimum amount of sales per day to stay in business.

    Leave a comment:


  • stanmxl
    replied
    Originally posted by Skeptical
    Are you telling me that if the cost to produce 19-inch LCD monitor were to go from $300 a piece down to $200 a piece (just throwing out hypothetical numbers), the retail market pricing of them wouldn't go down in response?
    It would not. It's a question of marketing, supply and demand and other market factors including inflation and the needs of the company's profits.

    I will, however, ask someone that I know that for sure has a more educated answer and I will then relay my findings here.

    Leave a comment:


  • phill2003
    replied
    Originally posted by Wayne Luke
    You don't know much about how the retail business operates.

    Once a price goes up past a certain threshold, it never drops below it.
    well i work in out local tesco's and everyay there are at least 100 price reductions, some 1 or 2 pence but some 10-20 pence.. however there are always just as many price increases by the same margine...



    we also send "spys" to morrisons just up the road on a weekly basis to buy a shopping list from different departments to see what they charge for the same things..

    if when we get back we find that say a 2.5kg bag of white potatoes happen to be 5 pence cheaper we will lower the price straight away and put an a4 sized POS (point of sale) stating that we are cheaper..

    this is done for everything if the price is the ame or higher at morrisons it stays the same..these decreases only last a week then the price is put back...

    i work on the produce department and last summer carrots were 11p a pound as it got to winter they peaked at 45p a pound they went up 20p in one week..

    but the thing is its morrisons that do this as well there staff actually have a clip board when they come to our shop and dont buy anything..but we chuck them out when we catch them

    what i'm trying to say is although you think they load the prices they are alreay being upped anyway and the cc purchases dont affect them all that much if at all.. i would also think that a company the size of wallmart would be able to tell the cc company how much they were going to pay them i know tesco do..

    thanks or reading this
    phill

    oh and sometimes tesco accept a loss on products to give the customer a better deal granted its not for long but it does happen..

    Leave a comment:


  • Skeptical
    replied
    Originally posted by Wayne Luke
    You don't know much about how the retail business operates.

    Once a price goes up past a certain threshold, it never drops below it.

    Even if you look at how Wal-Marts "Rollbacks" (if you live in the United States) are done, you would realize how much they are not saving people. When they decide to rollback the prices on a product, they raise them the day before. When the rollback is instituted, the price is "lowered" to what it was 2 days before, sometimes the rolled back prices are more than it was previous to the rollback procedure.
    Your example is flawed. It in no way addresses the changing profit margin that would occur should the discount rate be decreased toward zero. Your example of Walmart's pricing is one of marketing, not one of changing profit margins.

    If you knew anything about economics, you'll know about market equilibrium and its effects on pricing. When profit margins change, the pricing equilibrium moves to compensate. This is done not out of voluntary ultruism by the sellers, but instead forced by a healthy competitive market.

    Are you telling me that if the cost to produce 19-inch LCD monitor were to go from $300 a piece down to $200 a piece (just throwing out hypothetical numbers), the retail market pricing of them wouldn't go down in response?

    Perhaps there might not be a 1:1 proportional change in pricing as a result, but there will be a proportional change nevertheless (in a healthy competitive market of course).

    Leave a comment:


  • Wayne Luke
    replied
    Originally posted by Skeptical
    Yes, but imagine if more people paid by cash, market prices would drop a bit.

    I'm always happy though, to use merchants that give me a 2-3% discount when I pay by cash. Not very many of them, but there are some.
    You don't know much about how the retail business operates.

    Once a price goes up past a certain threshold, it never drops below it.

    Even if you look at how Wal-Marts "Rollbacks" (if you live in the United States) are done, you would realize how much they are not saving people. When they decide to rollback the prices on a product, they raise them the day before. When the rollback is instituted, the price is "lowered" to what it was 2 days before, sometimes the rolled back prices are more than it was previous to the rollback procedure.

    Leave a comment:


  • Skeptical
    replied
    Originally posted by orca
    Well, the 2-3% are already in the prices if you pay here in Switzerland. So if you pay cash, you actually pay 2-3% more...Means the store earns that.
    Yes, but imagine if more people paid by cash, market prices would drop a bit.

    I'm always happy though, to use merchants that give me a 2-3% discount when I pay by cash. Not very many of them, but there are some.

    Leave a comment:

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