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Originally Posted by
Chris Exley
I understand that they have to pay a % of the total and a per transaction charge, but they should figure that into the prices that they have marked on their products.
Quote:
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Originally Posted by MJM
Ummm.....no, thanks. That'd mean higher prices for those who do pay cash. Perhaps a pricing model like many gas stations used to do - one price for cash, another (higher) for credit.
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Actually, you will probably find that most businesses will establish their gross margin based on the profit they hope to achieve on the sale of their product or service less overhead costs (rent, utilities, phones, advertising, financial costs of doing business, etc.) If an item retails for $20, and it costs you $9.50 to buy it to sell, the remaining $10.50 is where you pay all those expenditures. Hopefully, there is something left over and that is what we call profit
, and if none left over, that is called negative gain by marketing experts (we would call it a #$#%^ loss
).
To have a dual price scale for cash and credit sales would be an accounting nightmare.