dalecochoy on fri 7 feb 03
YEP
YEP
YEP
and
NOPE
I will NEVER take a credit card after a reduced price has been "dealt" and I
explain why. It has never cost me a sale. You are correct, most people don't
realize we pay a fee. I've actually had people argue about the fee because
they are using a debit card "that doesn't cost them anything", they think it
doesn't cost us either!
Regards,
Dale Cochoy
----- Original Message -----
From: "Eleanora Eden"
Subject: credit card sales
>
> This reminds me that one of the things I try very hard to remember is that
> if somebody tries to start haggling with me at a fair the first thing to
> ask is how the bill will be paid. So before any haggling starts I get it
> on the record that I am not talking about a credit transaction. If that
> comes up for debate I explain about the fees that I pay to do a charge
sale
> and that I won't discount a charge sale for that reason.
>
> I find generally that very few people who are throwing around their
> credit cards are aware that we are charged fees for that privilege.
Mostly
> I get reasonable responses.
>
> The other issue Carol raised is the "privacy" procedure which puts the
> seller in the adversarial position if there is a question later about the
> sale. For that reason I require a phone # with a charge slip. People do
> inquire about that and I explain that charge sales are not over til they
> are over and if there is any question later the only way I can contact the
> buyer is if I have gotten a phone # as the credit card company won't
> release any information to me. That also comes as a great surprise to
most
> customers.
>
>
> > In my part of the
> >world, one gets the price agreed upon first before pulling out the credit
> >card; let the merchant think cash until it's too late for him to add 3%.
>
> Eleanora
Lois Ruben Aronow on sat 8 feb 03
I consider the credit card fee to be part of the cost of doing
business. So does the IRS, as I include that cost as part of my
business expenses, along with postcards, clay, etc. =20
If the merchants fees are so high that they are breaking into your
profit, you might want to look for a better deal. I'm about to switch
to Costco, as they have a low fee and no monthly statement fee.
As for passing on the cost to your customers, I am pretty sure the
credit card company forbids you to do that. Try raising prices
instead to cover the cost.
>I will NEVER take a credit card after a reduced price has been "dealt" =
and I
>explain why. It has never cost me a sale. You are correct, most people =
don't
>realize we pay a fee. I've actually had people argue about the fee =
because
>they are using a debit card "that doesn't cost them anything", they =
think it
>doesn't cost us either!
>Regards,
>Dale Cochoy
>
--------------------------------------------
=46ine Craft Porcelain - New and Updated for 2003!!
http://www.loisaronow.com=20
dalecochoy on sat 8 feb 03
----- Original Message -----
From: "Lois Ruben Aronow" Subject: Re: credit card sales
I consider the credit card fee to be part of the cost of doing
business. So does the IRS, as I include that cost as part of my
business expenses, along with postcards, clay, etc.
Yes, that's true, the IRS does consider that a deductable cost. But, of
course, an IRS deduction ain't like having the money is it?
If the merchants fees are so high that they are breaking into your
profit, you might want to look for a better deal. I'm about to switch
to Costco, as they have a low fee and no monthly statement fee.
Actually my fees are lower than some, that's why I STILL stay with my bank
that holds all my other "stuff"
As for passing on the cost to your customers, I am pretty sure the
credit card company forbids you to do that. Try raising prices
instead to cover the cost.
Well, isn't "Raising your prices to cover the cost" EXACTLY the same as
passing your costs onto your customers?? Who suffers? The customers using
cash or checks! Who , may not buy because your costs are higher to cover the
credit card folks!
Remember how many gas stations used to have two prices, one for cash and
one for charge??
Lastly, if you want to take a credit card AFTER you've negotiated a DISCOUNT
with someone, that's up to you, not them or your bank!
Regards,
Dale
>I will NEVER take a credit card after a reduced price has been "dealt" and
I
>explain why. It has never cost me a sale. You are correct, most people
don't
>realize we pay a fee. I've actually had people argue about the fee because
>they are using a debit card "that doesn't cost them anything", they think
it
>doesn't cost us either!
>Regards,
>Dale Cochoy
Cindi Anderson on sat 8 feb 03
There are many people (and companies) who give "cash discounts". It seems
not right to me, for what is the difference between adding the cost of the
credit card, and discounting for cash? But I have looked and haven't been
able to find anything in the Mastercard/Visa agreements that says you cannot
give cash discounts. Plus, once you start haggling then all bets are off.
At that point you are making them "your best deal", and you have the right
to know your costs.
But I don't really understand why you don't give any discounts if people use
credit card. The cc fee is only 2-3%, and I would guess when people get a
deal they are getting more off than that. Seems to me you would just reduce
the discount?
Anyway I have always been curious about the legality of haggling. There are
laws that say you can't charge different customers different amounts for the
same things Companies usually get around by allowing discounts for volume
or other intantibles, or for "meeting comp" which is matching a competitive
bid. Not that anybody really cares about craftspeople selling things for
different prices, but I wonder if it is technically legal. Of course, I
can't figure out why it is legal to give discounts to seniors for the same
reason. Nor do I think it is fair, as there are many rich seniors and poor
young people.
Cindi
Fremont, CA
Eleanora Eden on sat 8 feb 03
In-Reply-To:
Mime-Version: 1.0
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This reminds me that one of the things I try very hard to remember is that
if somebody tries to start haggling with me at a fair the first thing to
ask is how the bill will be paid. So before any haggling starts I get it
on the record that I am not talking about a credit transaction. If that
comes up for debate I explain about the fees that I pay to do a charge sale
and that I won't discount a charge sale for that reason.
I find generally that very few people who are throwing around their
credit cards are aware that we are charged fees for that privilege. Mostly
I get reasonable responses.
The other issue Carol raised is the "privacy" procedure which puts the
seller in the adversarial position if there is a question later about the
sale. For that reason I require a phone # with a charge slip. People do
inquire about that and I explain that charge sales are not over til they
are over and if there is any question later the only way I can contact the
buyer is if I have gotten a phone # as the credit card company won't
release any information to me. That also comes as a great surprise to most
customers.
I once had a customer who charged a set of dishes to his business during
the summer and the next spring at tax time his accountant called me up and
contested the sale. I was able to contact the buyer and he was so
embarrassed he insisted on paying for them again by check. I tried to
explain that he had already paid by charge but he wouldn't hear of it. So
that event offset a lot of the other hassles in my business life where I
have gotten the shorter end of the stick.
> In my part of the
>world, one gets the price agreed upon first before pulling out the credit
>card; let the merchant think cash until it's too late for him to add 3%.
Eleanora
............
Eleanora Eden 802 869-2003
Paradise Hill Road eeden@vermontel.net
Bellows Falls, VT 05101 www.eleanoraeden.com
dalecochoy on sun 9 feb 03
Good post Cindi, you make some good points.
At my sales booth, and probably yours also, EVERYTHING is priced. Now, if a
customer wants to "haggle" then, as you say, all bets are off!
How much are they buying, are they a friend, are they a dealer, are they
snotty/rude, and, yes, are they using a CC.
You looked into MC/V info and saw nothing on "cash discounts" ? Well
Cindi...that's not up to Mastercard if you want to give a discount ( or
another word, "Have a sale".)
Re: CC fees. Add up ALL the little "gravy items" on your next bank
statement and you'll find the % you are charged goes up some with all their
gimmeee's.
As for Retail pricing and changing them. Most items have a "suggested
retail" which depending on the store can be boosted or lowered. If stores
are competitive ( Walmart, Kmart) pricing becomes quite a game. If Demand is
high or items hard to find , well, that's a different ballgame. Try buying
a bottle of water in Acapulco or, (this one really hits home to me) I
remember shopping for a new PT Cruiser for my wife and found dealers adding
HEAFTY tag-ons they called " Market Adjustments"!!! I had always thought the
sticker price couldn't be boosted. I was wrong. Maybe once that was so, but
now, they say "Suggested retail". BTW, I managed to beat that $2,500
rip-off with ONE CALL to the dealer chains consumer line.
Senior discounts...ah yes! Granted, MANY seniors are really
truggling.( Especially now that our 401K's are all 101K's) but those aren't
the ones usually buying expensive handmade art. I wish I could afford to
travel around the country in my motor home or jet off to Europe! Ha!
OK seniors, calm down now....I have my AARP card too! :>)
Regards,
Dale Cochoy
----- Original Message -----
From: "Cindi Anderson"
> There are many people (and companies) who give "cash discounts". It seems
> not right to me, for what is the difference between adding the cost of the
> credit card, and discounting for cash? But I have looked and haven't
been
> able to find anything in the Mastercard/Visa agreements that says you
cannot
> give cash discounts. Plus, once you start haggling then all bets are off.
> At that point you are making them "your best deal", and you have the right
> to know your costs.
>
> But I don't really understand why you don't give any discounts if people
use
> credit card. The cc fee is only 2-3%, and I would guess when people get a
> deal they are getting more off than that. Seems to me you would just
reduce
> the discount?
>
> Anyway I have always been curious about the legality of haggling. There
are
> laws that say you can't charge different customers different amounts for
the
> same things Companies usually get around by allowing discounts for volume
> or other intantibles, or for "meeting comp" which is matching a
competitive
> bid. Not that anybody really cares about craftspeople selling things for
> different prices, but I wonder if it is technically legal. Of course, I
> can't figure out why it is legal to give discounts to seniors for the same
> reason. Nor do I think it is fair, as there are many rich seniors and
poor
> young people.
>
> Cindi
> Fremont, CA
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