MNvending Posted March 22, 2017 Posted March 22, 2017 I'm setting up 2 tier pricing on all of my machines with eports and am wondering how other people tell the customers about it. Do you put a sticker on there explaining that there is a 10 cent up charge on all cashless purchases, or do you not worry about it? I don't think it's a real big deal and I'm sure the majority of people wouldn't even notice or really care most of the time, but I think people should know how much they're being charged and I don't want to look shady when people do notice. The processing fees are damn near another sales tax fee so I definitely want to address it.
AngryChris Posted March 22, 2017 Posted March 22, 2017 The correct way to explain the price difference is that you are offering a 10 cent discount on cash transactions. I'm no lawyer, but it is supposedly illegal to charge more for card transactions. Nothing is illegal about a cash discount though. You can get two-tier pricing stickers. I chose to keep my prices the same for cash or credit.
lacanteen Posted March 22, 2017 Posted March 22, 2017 You must disclose the charge with a decal on the front of the machine. Chris, you are missing out on a lot of dimes.
Southeast Treats Posted March 22, 2017 Posted March 22, 2017 EPorts usually come with a two-tier pricing sticker inside the box as I recall. LA, you are correct; but I add readers to get more business and don't want to run off the customers who object or just don't understand, so I eat the difference. I like that a little better than eating stales anyway!!
lacanteen Posted March 22, 2017 Posted March 22, 2017 Most customers don't even notice. Our daily 2-tier collection is 2.4% of the total sales in machines with credit card readers.
MNvending Posted March 22, 2017 Author Posted March 22, 2017 I don't like the idea of adding 10 cents, but it's kinda crazy when you look at all the cashless sales for the past year and realize how much you paid in processing fees. Some locations are doing about 50% cashless purchases, so when you add in commission, sales tax, processing fees, and the 8 dollar monthly charge for the eport your not making much on the cashless sales. I feel like that should be addressed.
AngryChris Posted March 22, 2017 Posted March 22, 2017 I should have disclosed that I raised most prices by 5 cents when keeping a 1-tier price and adding credit card acceptance.
lacanteen Posted March 22, 2017 Posted March 22, 2017 57 minutes ago, duiman said: I don't like the idea of adding 10 cents, but it's kinda crazy when you look at all the cashless sales for the past year and realize how much you paid in processing fees. Some locations are doing about 50% cashless purchases, so when you add in commission, sales tax, processing fees, and the 8 dollar monthly charge for the eport your not making much on the cashless sales. I feel like that should be addressed. That's what the dime is for. It pays your transaction fee and a portion of the monthly.
MNvending Posted March 22, 2017 Author Posted March 22, 2017 1 minute ago, lacanteen said: That's what the dime is for. It pays your transaction fee and a portion of the monthly. I understand that. I was just stating why I think it's necessary to adjust for the fees.
MNvending Posted March 22, 2017 Author Posted March 22, 2017 2 hours ago, lacanteen said: You must disclose the charge with a decal on the front of the machine. Chris, you are missing out on a lot of dimes. What does your decal say, and where do you get it? I have the one that Chris was talking about but I think it's kind of misleading.
MNvending Posted March 23, 2017 Author Posted March 23, 2017 Thanks for your help I really appreciate it.
tc vending Posted March 23, 2017 Posted March 23, 2017 I use two tier pricing. I already pay the sales tax on the item they can pay to use their card and they do all the time.
Southeast Treats Posted March 24, 2017 Posted March 24, 2017 Well I was not looking for it but I ran into the situation today that relates to two-tier pricing. I was meeting with a new account (currently served by a large national company that is not providing good service), and the current machines have two-tier pricing at 0.10 cents. The account contact and a random employee who was in the break room both commented on the upcharge negatively; the employee stated that "we tell everyone not to use a credit card because of that charge". I run into that attitude quite a bit. Leaves me to wonder if the dime makes up for sales lost to people choosing to quietly not make a purchase... maybe it's just a Florida thing, too much sunshine but not enough paycheck...
AngryChris Posted March 24, 2017 Posted March 24, 2017 I think a lot of people simply hate fees so much that they would rather pay 85 cents without a fee than pay 90 cents with their card for an item that only costs 80 cents with cash.
PHX1 Posted March 24, 2017 Posted March 24, 2017 1 hour ago, AngryChris said: I think a lot of people simply hate fees so much that they would rather pay 85 cents without a fee than pay 90 cents with their card for an item that only costs 80 cents with cash. Most of the time 5 Cents is not enough to cover processing fees, I would recommend doing 10 cents
AngryChris Posted March 24, 2017 Posted March 24, 2017 31 minutes ago, PHX1 said: Most of the time 5 Cents is not enough to cover processing fees, I would recommend doing 10 cents I think you misunderstand me. If I normally charge 80 cents for an item and my customer would like credit cards installed, then I sway them to allow me to raise the price of the item to 85 cents to cover ALL transactions, cash or credit. So, I get an extra 5 cents for cash or credit. You only get 10 cents from card sales.
joshnosh Posted March 24, 2017 Posted March 24, 2017 This is an AGE thing. Anyone under 40 doesn't event think twice about using a credit card, even if they know it is going to cost more
MNvending Posted March 24, 2017 Author Posted March 24, 2017 2 minutes ago, joshnosh said: This is an AGE thing. Anyone under 40 doesn't event think twice about using a credit card, even if they know it is going to cost more I definitely agree josh.
pocketjax Posted March 24, 2017 Posted March 24, 2017 I read and gain a lot of insight here but rarely feel the urge to comment until now. We added card readers to our mix a year ago and I would say it has had a very positive effect on our business. I started our business 17 years ago buying a small route (6 drink and 6 snack machines) and we now have 2 full vending routes and an ocs route as well. We struggled the first few years until I made a decision to stop letting our customers dictate our practices. We then set our pricing structure and we raise prices periodically to offset rising cost of goods etc. Your vending route is a business and you should run it like a business as being profitable is the most important factor . There are always going to be people that complain about price and fees but they complain about everything else in their life as well. So when i had the decision to eat the fees or pass them on i didn't hesitate for a second. My 2 cents JJ
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