Credit Card Payments

[kodydog]

We keep very close tabs on our overhead and costs. Each product price is calculated with material costs, admin costs, manufacturing costs, shop overhead costs and yes CC costs.
Mojo

Mojo, my business is very different than yours because ours is all local and yours is nation wide. I can see how you would lose business if you didn't accept credit. We don't and I can't think of a time we have lost a customer because of our policy of cash or check. Extra points for using credit cards is a nice perk, Rose and I use this advantage ourselves but our customers seem to have a "whatever" attitude.

And speaking of gouging, We made an order for thread. Price was too good to be true. They told us a certain color was on back order and would not ship for several months. Rose told them to ship the colors they had in stock and we would reorder later. Several days later the order came as promised. And the next day the back ordered thread arrived. This created double shipping. Which of course turned a great deal into an average deal. Yes I was kinda pissed.

[sofadoc]

We don't and I can't think of a time we have lost a customer because of our policy of cash or check.

I have several commercial accounts that give me their CC number to keep on file. The split second that I shoot the last staple, I run their card (even before I tell them it's ready). Beats the hell outta sending them an invoice and waiting up to 45 days for a check to come through snail mail. 

Do I charge an extra fee for accepting credit cards? Technically, no.....BUT.....merchant fees are factored in to my prices.

As for residential customers. I'm absolutely positive that I get paid a lot quicker by accepting CC's. I don't get all those excuses for delaying pick-up.

And CC users are far less likely to haggle over price.

Besides, if I don't take their CC, that nice furniture store down the street will. 

[MinUph]

I have to say I believe more business is done because I accept cards. It is just an educated guess.

[SteveA]

When I was just out of HS - I worked briefly for an upholsterer who had a big enough store that he could sell furniture.  Like Doc - he had beds but also inexpensive lines of furniture.  He became wealthy from none of that commerce - his key to success was he sold furniture to folks who could not afford to pay up front and had no CC.  He would finance them - He would charge a vig and they would pay him monthly with interest.  One day a week he would go collect - I would drive him and he'd run in and collect his fees.  Sometimes while he was in the house the folks would order more furniture and he'd come running out for the books.   The customers loved him because he trusted them and no one else would. Yes credit works and boosts sales for sure
SA

[sofadoc]

He became wealthy from none of that commerce - his key to success was he sold furniture to folks who could not afford to pay up front and had no CC.  He would finance them

We had guys here that made a nice living toting their own notes. But that was before CC companies started passing them out like candy. Back in the day, a person had to be pretty far above the poverty line to merit a credit card. So for many people, their only choice was to find a place that offered in-store charge accounts.

I remember buying our wedding rings from a credit jeweler. That was 40 years ago. Only 3 more payments and those babies are all ours!

A small retail business owner who handles his own financing doesn't stand a chance nowadays. Even though he would probably charge a MUCH more honest interest rate.

[gene]

"A small retail business owner who handles his own financing doesn't stand a chance nowadays."

Too many people work hard at ripping off others as a way of life. Too many people live with an entitlement mentality and have no sense of responsibility to pay off their own debts.

A person can't pay their bill but they have money for drugs, tattoos, junk food, tickets to concerts, and guns. Who wants to go to some crooks house, or government housing project, and try to collect money?

gene

[SteveA]

We're closing in on 40 years and I don't wear a wedding ring - just a watch and a crucifix - never wore any kind of ring.  Her's cost $ 90.00 39 years ago. Only two more payments ! 
Two years ago after putting on a few pounds it was tight on her finger so she put it on a bracelet - the bracelet broke and both items were lost and no clue where.  This year a week before our anniversary she was going through her closet and on the floor were the two pieces of jewelry.  She's since back to her goal weight and the ring fits again.  It was the least expensive piece of jewelry I ever gave her but the only piece that can't be replaced.
SA 

[kodydog]

Going out on a limb here but what did y'all do before you started accepting credit cards. Cash or check, right? At some point you decided to add the convenience of accepting credit cards. And for this "convenience" on a $1000 order you get to pay the credit card company $30. I'm guessing if you made a policy of charging that to the customers invoice more would pay with cash or check. Cash is always my favorite. Am I missing something?

[sofadoc]

Cash is always my favorite. Am I missing something?

Again, my reasons for accepting CC's are:

1) Get paid quicker
2) Customer doesn't haggle over price

I'm positive that second bullet point has MORE than compensated for my CC fees over the years.

I'm also finding that many of my customers don't even own a checkbook any more. And they would be reluctant to go to their bank and draw out a large sum of cash for the sole purpose of paying me.

I only have about 20 checks left from a checkbook that I got over 10 years ago. On average, I write less than one check a year.
I would feel naked with less than $1000 in my wallet. I pay cash everywhere I go. But that means that I have to hang on to every little receipt. People are becoming more and more dishonest by nature nowadays. When I pay cash, that money has a mysterious way of vanishing into thin air.

[SteveA]

Not to forget most folks get points or cash back when they use the card - some want that toaster and it doesn't matter how much they spend to get a gift as long as they get points.  Did any of you save the coupons in cigarette Raleigh packs for example ?  Who cared about their health  - instead save up the coupons for a transistor radio. 
It doesn't matter how you get paid as long as you provide all the choices -  and I can't speak for the rest of you but in case anyone from sales tax or income tax is monitoring - I don't accept cash
SA

[sofadoc]

I have a lot of customers that will ask "Is it cheaper if I pay (wink-wink) cash?"
I gladly accept cash. But I don't offer any type of discount (such as forgetting about the sales tax).

It's funny how aware people are of CC fees now. Yet back in the day, they blindly paid extra at the grocery store for the privilege of saving those stupid Green Stamps.

As a kid, I saved those Raleigh coupons from my grandfather's cigarette packs. And yup, got me a transistor radio. My grandfather swiped it from me and traded it for a fifth of whiskey.

[gene]

I saved Green Stamps from the grocery store when i was a litle kid. No one wanted them so I took them. My mom got the books for me and every week I got the stamps after she went grocery shopping and I stuck them in the books. I would spend hours going through the catalog. I had my eye on that canoe.

After many years of collecting the Green Stamps, my mom took them all away from me so my older sister could get something she wanted from the catalog.

gene

[kodydog]

And yup, got me a transistor radio. My grandfather swiped it from me and traded it for a fifth of whiskey.

After many years of collecting the Green Stamps, my mom took them all away from me so my older sister could get something she wanted from the catalog.
gene

Old people are mean!

[Mojo]

We have a mobile RV Tech company that we use for repair work on customer coaches. They only accept checks and cash.
I often wonder just how much business they leave on the table.

We have some customers when they are in for plate installs pay cash, one this week wrote a check but most prefer using a CC.
We would have went bankrupt if we only accepted cash or checks and not CC's. It is just to hard when you are dealing with customers all over the USA.

Green stamps ? Geeesh. You guys are old....:)

Mojo

[SteveA]

I thought most here are around pay phone old ?
SA