Cash Discounts-Business Owners

[Zee09]

I haven't had cash in my hands from customers for about 20 years. They use cc's or PayPal.
I offered from 10-15% discounts on cash purchases over the years. No luck.
I have found the latest generation does not deal in cash and most are to lazy to send a letter.
Or they just don't have it.


Business owners etc... are you insulted when someone wants a cash discount????
Myself- I could kiss them but it never happens anymore... lol

Why am I asking? I'm thinking about asking for a cash discount for a situation I'm in but I'm gun-shy from
all of the nonsense I have had to endure from customers over the years. I tend not to stray from normal when
doing personal business. For now that's what I need to know- can give details latter, Thanks

 

[opus1]

It's possible they may offer you one before you ask?

I had that come up when I had to have my water heater replaced - the guy gave me a quote and said that was cash, and if I wanted to use a card he'd tack on 3.5% to cover the costs that the banks charge him to process cards.

 

[Onetor]

Zee09,

Cash rules! It's rare for a business to offer a discount for cash.

 

[skyactiv]

A younger generation bashing thread, go figure.
Your a fool to offer a 10-15% discount for cash because credit card fees are are not that high.
I'm sure self employed people who wanna cheat or not pay taxes prefer cash, drug dealers and hookers as an example.

 

[hatt]

I love getting cash discounts.

 

[Zee09]

Originally Posted by skyactiv
A younger generation bashing thread, go figure.
Your a fool to offer a 10-15% discount for cash because credit card fees are are not that high.
I'm sure self employed people who wanna cheat or not pay taxes prefer cash, drug dealers and hookers as an example.

What question did you answer???
This has nothing to do with credit card fees.

 

[bradepb]

I think he is asking which you are, drug dealer or hooker

 

[Zee09]

Originally Posted by bradepb
I think he is asking which you are, drug dealer or hooker

I guess he's of the generation we're all supposed to admire....

 

[Zee09]

Originally Posted by opus1
It's possible they may offer you one before you ask?

I had that come up when I had to have my water heater replaced - the guy gave me a quote and said that was cash, and if I wanted to use a card he'd tack on 3.5% to cover the costs that the banks charge him to process cards.

I understand that situation. most business people use the same spiel. They would be surprised to know that often their 1.95% merchant
account can at times cost them in reality 6-8% by taking a card. The business pays the tab for reward cards etc. Most businesses never
look at their statements to know this. I started taking credit cards in the late 70's...

My issue is this.....……


My mothers house needs a new well. It is $15K ( deep well with all plumbing etc. done by one firm)

I will have to pay it because she doesn't have the money....

I was thinking about offering him a cash deal for a discount.

I'm not expecting a big discount but $500 to possibly $1000 would be great.

 

[DoubleWasp]

Originally Posted by skyactiv
A younger generation bashing thread, go figure.
Your a fool to offer a 10-15% discount for cash because credit card fees are are not that high.
I'm sure self employed people who wanna cheat or not pay taxes prefer cash, drug dealers and hookers as an example.


This nonsense about trashing on people who use cash has got to stop. That cash is legal tender issued by our governments for all matters.

All of this anti-cash culture is about feeding the middle-men and nothing else.

Various companies push for a cash-free society because then they can turn up the fees on both ends. Remember when Bank of America wanted to start charging for debit cards? It's not a theory.

 

[Zee09]

Originally Posted by DoubleWasp
Originally Posted by skyactiv
A younger generation bashing thread, go figure.
Your a fool to offer a 10-15% discount for cash because credit card fees are are not that high.
I'm sure self employed people who wanna cheat or not pay taxes prefer cash, drug dealers and hookers as an example.


This nonsense about trashing on people who use cash has got to stop. That cash is legal tender issued by our governments for all matters.

All of this anti-cash culture is about feeding the middle-men and nothing else.

Various companies push for a cash-free society because then they can turn up the fees on both ends. Remember when Bank of America wanted to start charging for debit cards? It's not a theory.



I'm with you and no cash means control. It's also a way of keeping track on you.
Many fear internet spying. No cash means Uncle Sam is tracking you too!

 

[AZjeff]

OP, for what reason would you offer a 10-15% discount for cash? A check is just as valuable as cash and CC fees are what 2-4%? We ran a small retail biz for 20 years and never offered large cash discounts. The only reason I can think of is you have a high profit margin product and don't want to report all sales.

Let's try to keep evil corporate profits and increasing fees out of this, the OP is offering cash discounts and few take him up on it. Pretty simple.

 

[Virtus_Probi]

A gas station not too awfully far from where I live has a cash discount....last time I was in that area and needed gas, I used it.
The catch, of course, was that I had to walk in and give them cash before pumping...I wanted to fill up and dropped $40 off at the register.
When I came back in, there was a substantial line (all buying lottery tix) and a different cashier!
After waiting for all the lottery players (including people scratching tickets off and buying more with their winnings), I was sure the new cashier was going to tell me that nobody gave her any cash.
Everything was fine as the cashier who left had clued her in, but standing in line and worrying about my payment made that discount seem worthless.

 

[maxdustington]

The entire point of cash discounts is to avoid taxes. Here in Ontario, I think it's around 11%, so there is motivation to do things under the table.

My dad is a contractor and his clients always end up wanting extras. Occasionally, he will take a cash payment for these extras from good customers. This is on top of a taxed job.

The whole "cash is king" mentality where people act like they are carrying gold bars in their pocket and deserve a discount is so played out. It's just a negotiation tactic that has become less effective in 2019 where fewer and fewer people carry cash.

 

[EdwardC]

I always try to have cash on me. I'm in Chinatown a lot, and many of those restaurants have a 10-15% cash discount (sometime unadvertised, just have to ask). In addition, there are still some places that are cash only (we tend to like going to localnholes in the wall). I'll take 10-15% discount over the 1-5% CC rewards all day.

However, I don't know if I'd do the same thing for larger ticket/service items. I like the bit of protection the credit card companies offer.

I can't say I do this myself, but I've heard many stories about people getting small discounts just for asking. Say you're a veteran, you can ask for a veteran's discount, in your mother's case, maybe they have a senior discount.

 

[skyactiv]

Very good points made.
I have nothing against cash, I don't like tax cheats however.
I gotta wonder why someone who's self employed would offer a 10-15% discount for paying cash?
It's a good way to hide income and avoid paying taxes.
Very common for self employed people to do. Not saying you do it as you claim you haven't had cash in your hands for 20 years.

 

[Gimpy1]

We offer cash discounts. One of the biggest factors is that the Mexican Peso is volatile compared to the dollar. Here in Mexico cash is king. Credit cards and debit cards are still accepted but people are very weary about using them since id theft is very high, and unlike the US, banks here don't always give you your money back if its stolen due to fraud. If they do it can take up to 6 months to get it back. As for folks that bash cash customers, the reliance on electronic payments is fine, great, and dandy, wait until your account gets hacked and you accounts emptied, while yes you will get your money back, it is a royal PITA to deal with banks etc, and while your accounts are locked how are you going to pay for gas or groceries? Electronic transactions are vulnerable even if you take precautions, even the best defended accounts still get hacked. Cash gives you flexibility.

 

[Virtus_Probi]

Originally Posted by maxdustington
The entire point of cash discounts is to avoid taxes. Here in Ontario, I think it's around 11%, so there is motivation to do things under the table.
My dad is a contractor and his clients always end up wanting extras. Occasionally, he will take a cash payment for these extras from good customers. This is on top of a taxed job.
The whole "cash is king" mentality where people act like they are carrying gold bars in their pocket and deserve a discount is so played out. It's just a negotiation tactic that has become less effective in 2019 where fewer and fewer people carry cash.

When I worked painting houses, I always got a regular paycheck as well as a "tax free" check...along with a warning to not report the latter to the IRS.
I was a kid and didn't care at the time, but that would bother me now.

BTW, I always have cash on me and hate using CCs for small purchases...somebody messing with a debit card for a $2 purchase in front of me in line at 7-11 drives me insane, they always mess up their PIN or end up having no money in that account or whatever. I know that I'm old fashioned...

 

[The_Jeff]

There are some trades where you need the guy at 2 am because the system is your "life support". Leaky roof, dead furnace, no water, no electricity, all can be bad. If you have an established relationship and a rep for paying cash, they may easily decide to hook you up vs blowing you off when you need it most.

Even without a discount, this is something to consider.

 

[Zee09]

Originally Posted by AZjeff
OP, for what reason would you offer a 10-15% discount for cash? A check is just as valuable as cash and CC fees are what 2-4%? We ran a small retail biz for 20 years and never offered large cash discounts. The only reason I can think of is you have a high profit margin product and don't want to report all sales.

Let's try to keep evil corporate profits and increasing fees out of this, the OP is offering cash discounts and few take him up on it. Pretty simple.



To clear up the issue. I was going to offer the well driller cash...………

Next- I offer cash discounts. I'm a 100% mail order so it isn't physical cash. It is checks-all types, money orders etc.
I don't charge fees for cc's or PayPal etc. I absorb those.
The cash discount saves me 3.5% plus some other fees ( I'm paying the merchant fees)
Next I have a large base of customers I left behind. Old school people who never made it to the net or cell phones.
They won't do and don't do cc or PayPal.So I send out newsletters like the old days via the post. I give them a big discount trying to get them back.
And if they send me checks etc I don't have to visit the virtual terminal and print receipts etc.Plus I find that 10-15% pumps them up and they spend far more to get the deal.


I made a mistake offering promo codes several years ago for online orders ( the cc and Paypal buyers) I do it bi-weekly.
The problem is they will not buy now unless they get a promo code. Yes really. Must be like the BITOG M1 bunch.

I like getting letters in the mail now like the old days. Also I find those mail in order types to be more appreciative and I don't need to email them a tracking number.
Plus they often send in an order and they ask for custom parts. So It is a win-win for me and that discount is no loss.
I'm a one man operation-and most have known me since the 70's and the word gets out I'm still kicking and it brings back more old timers from the earlier days.