Re: [ST] Cash purchasers

[JES_VFR <jes_vfr@xxxxxxxxxxx>]

At 02:29 PM 7/10/2007, you wrote:
> > The fees charged to a business for using a credit card machine cut
> > into the profit on a deal and are based a transaction ratio (total
> > dollars to number of transactions) so the merchant would rather have
> > 50 purchases a week for $9,000 than 2 totaling $18,000.
> >
>
>My credit card merchant bank charges me $10 every month regardless of
>whether I accept any credit cards that month or not.
>
>For transactions in person where I run the card  they charge about
>1.6%. For phone or internet orders it goes up to about 3.5%. Each
>transaction also gets charged 25 cents for a transaction fee.
>
>So using your example, I'd rather have 2 sales totaling $18,000,
>because not only did I make $9k more in sales, I would have save $12 in
>transaction fees.
>
>My original point though is that the agreement with the credit card
>companies stated that if I agreed to accept their credit card I had to
>accept it for all purchases. I couldn't set a minimum or maximum
>purchase amount. I also couldn't tack on a extra fee if the customer
>wanted to pay with a credit card.
>
>I have to question a business owner who would choose to possibly lose a
>sale because they're going to lose about 1.6% of the transaction. How
>much are they going to spend on marketing to find the replacement
>customer?
>
>Matt Knowles - Ferndale, CA -
>http://www.knowlesville.com/matt/motorcycles

Well, I can only tell you what was I told.
I was just a part's guy so I did not get to set or review the real 
policies that we had with the merchant banks.

As for marketing, they did not really care enough about that. The 
owners were very narrow minded and overly profit driven.

ex. A mother (and rider, as well as a repeat customer) purchases a 
brand new dirt bike for her daughter and three days after they take 
delivery, the bike appears to have fouled a plug. The bike happens to 
be missing the factory plug wrench so the mother brings the bike in 
to get the plug changed. The service writer, puts the order into the 
system as a "check and advise, no start evaluation" and then charges 
an hour for that as well as full markup for the new plug and 
replacing the factory wrench (even though the wrench was ordered as a 
'We Owe' in the deal). Total cost ($168.00 plus sales tax). The woman 
complains to the owner and they "graciously" agree to drop the cost 
of the wrench and to give her a "free" spare plug.
Then they all stared at her in confusion as she cursed them all out and left.
To the SM and the owners that was good business because it make a 
great profit.

Everyone else in the store thought it was beyond stupid.

Now you can see why I don't work there anymore.

JohnS
A Dragon Ascending
"Forging my body in the Fires of my Will"


_______________________________________________
Triumph Sprint ST/RS mailing list
Send list posts to ST@xxxxxxxxxxxxxx
Change your list options at www.Triumphnet.com