Everything costs money when you run a business. You need to consider all of those things when setting a price. Cash has more overhead, so a surcharge for another payment method makes no sense.
True, everything costs money when you run a business.
But for small businesses (usually the kind that charge a surcharge), I question the statement that cash has a higher overhead than EFT/credit cards. Maybe I’m thinking small, and just expect a cafe owner (for example) to just deposit cash at an ATM on their way home - rather than pay for an Armaguard lock-up etc.
I normally estimate the break-even point at half an hour of the manager’s wage since that’s how long it takes to count down 2 registers and go to the bank.
extra insurances costs to cover cash being stored, staff theft, robbery with staff being held at knife point, need to arrange change so a bank visit is necessary for that etc etc
Even medium businesses that deal with large items.
An industrial reseller may purchase an engine, lathe or other component from a wholesaler/importer and then onsell to an industry.
2% of a $50k sale is still $1000.
Agreements are made on tenders where the differences are fractions of a percent and an extra months credit.
That will either eat into margins or if the bloke down the road offers it at $49k, cost the sale!
In which case, maybe there are too many resellers.
There is no such thing as goodwill any more.
Everything costs money when you run a business. You need to consider all of those things when setting a price. Cash has more overhead, so a surcharge for another payment method makes no sense.
True, everything costs money when you run a business.
But for small businesses (usually the kind that charge a surcharge), I question the statement that cash has a higher overhead than EFT/credit cards. Maybe I’m thinking small, and just expect a cafe owner (for example) to just deposit cash at an ATM on their way home - rather than pay for an Armaguard lock-up etc.
I normally estimate the break-even point at half an hour of the manager’s wage since that’s how long it takes to count down 2 registers and go to the bank.
extra insurances costs to cover cash being stored, staff theft, robbery with staff being held at knife point, need to arrange change so a bank visit is necessary for that etc etc
Even medium businesses that deal with large items.
An industrial reseller may purchase an engine, lathe or other component from a wholesaler/importer and then onsell to an industry. 2% of a $50k sale is still $1000.
Agreements are made on tenders where the differences are fractions of a percent and an extra months credit.
That will either eat into margins or if the bloke down the road offers it at $49k, cost the sale!
In which case, maybe there are too many resellers. There is no such thing as goodwill any more.