@PerryHall said:
I wonder if these cash only places pay their full sales taxes and income taxes owed.
why do you think they dont take credit cards? It's not to save 2.9% (otherwise theyd just charge more). 100% tax dodging.
That's not entirely true. Raising prices lowers your competitive advantage in the market. This is especially true for low margin items. When I was running a private medical practice, reimbursements and allowed charges were mostly fixed by insurance companies and government. It might have been a 3% fee, but that 3% represented 6-7% of my profit. Other markets have different constraints on pricing too.
I do not accept your argument. What lowers your competitive advantage? Only accepting one form of payment.
Let the consumer decide how they want to pay, and with what fees.
Your view may assume rational and educated consumers. Higher prices (especially on low margin items) might well be a competitive disadvantage to some buyers. Lowest prices, with an extra fee for using credit, seems very reasonable, but probably cheeses off some potential buyers So does cash only, and so does slightly higher prices and no-fee credit accepted. I could go dig up some research, but too lazy^H^H^H^Hbusy right now...
100th pint of blood donated 7/19/2022 . Transactions with WilliamF, Relaxn, LukeMarshal, jclovescoins, braddick, JWP, Weather11am, Fairlaneman, Dscoins, lordmarcovan, Collectorcoins, SurfinxHI, JimW. God so loved the world that he gave his only begotten son, that who so believeth in him should not perish but have everlasting life.
I have a cash paying customer who regularly buys silver. With that, he barters for goods and services with any and all who want to transact that way. And many do.... so I'm told.
@PerryHall said:
I wonder if these cash only places pay their full sales taxes and income taxes owed.
why do you think they dont take credit cards? It's not to save 2.9% (otherwise theyd just charge more). 100% tax dodging.
That's not entirely true. Raising prices lowers your competitive advantage in the market. This is especially true for low margin items. When I was running a private medical practice, reimbursements and allowed charges were mostly fixed by insurance companies and government. It might have been a 3% fee, but that 3% represented 6-7% of my profit. Other markets have different constraints on pricing too.
I do not accept your argument. What lowers your competitive advantage? Only accepting one form of payment.
Let the consumer decide how they want to pay, and with what fees.
It was suggested that you could just raise prices to cover the 3%. @brycem simply pointed out that you don't always have the ability to raise prices 3%. How could you possibly argue that being 3% higher than your competitors would not be bad for business?
@PerryHall said:
I wonder if these cash only places pay their full sales taxes and income taxes owed.
why do you think they dont take credit cards? It's not to save 2.9% (otherwise theyd just charge more). 100% tax dodging.
That's not entirely true. Raising prices lowers your competitive advantage in the market. This is especially true for low margin items. When I was running a private medical practice, reimbursements and allowed charges were mostly fixed by insurance companies and government. It might have been a 3% fee, but that 3% represented 6-7% of my profit. Other markets have different constraints on pricing too.
I do not accept your argument. What lowers your competitive advantage? Only accepting one form of payment.
Let the consumer decide how they want to pay, and with what fees.
Your view may assume rational and educated consumers. Higher prices (especially on low margin items) might well be a competitive disadvantage to some buyers. Lowest prices, with an extra fee for using credit, seems very reasonable, but probably cheeses off some potential buyers So does cash only, and so does slightly higher prices and no-fee credit accepted. I could go dig up some research, but too lazy^H^H^H^Hbusy right now...
I haven't seen ^h in years. I've wanted to use it but feared no one was left who understood vi.
100th pint of blood donated 7/19/2022 . Transactions with WilliamF, Relaxn, LukeMarshal, jclovescoins, braddick, JWP, Weather11am, Fairlaneman, Dscoins, lordmarcovan, Collectorcoins, SurfinxHI, JimW. God so loved the world that he gave his only begotten son, that who so believeth in him should not perish but have everlasting life.
I take cash, credit, debit, and PayPal/Venmo in my business (which happens to be coins) since it is my reasoning that I am getting money from you one way or another. Never had issues.
DORAN COINS - On Facebook, Instagram, X (formerly Twitter), & www.dorancoins.net - UPCOMING SHOWS (tentative dates)- 10/8/2023 - Fairfield, IL, 11/5/2023 - Urbana, IL., 12/3/2023 - Mattoon, IL.
@ricko said: @jmlanzaf.... Interesting... I have not run into that here where I live in NYS...I deal mostly in cash when buying locally and have not had a single refusal. Well, one pizza place did not want a $50 bill... claimed too many counterfeits around... but I had $20 bills to pay with.... Not much Covid issues here. Cheers, RickO
Hey Ricko, I have a friend that's been in the tool sales and repair business on LI for 40 years. He said his business has gone from all cash to debit and credit cards even for $5 and $10 purchases over the last ten years or so. This is pre-Covid so it's not a byproduct of the pandemic. Even when I go into 7-11 I see people paying for a cup of coffee with a debit card. A sign of the times and the trend towards a cashless society.
I've read of some places that accept only CCs in order to reduce the amount of employee theft when cash is taken.
@pursuitofliberty said:
Considering cards cost 2.9% for most vendors (at least), and the always present possibility of charge backs ... and you are face-to-face, why would they want too?
Why? Because people are willing to spend more, and can use it as a means to finance a large purchase.
Studies show that people spend 20% more when using credit cards. It's one of the reasons people argue for using cash when buying.
Ya, buying with cash and buying with plastic activates different parts of the brain. Paying with credit activates pleasure centers and paying with cash or debit does not. Those who earn 3-6% on "points" but spend 20% more are fooling themselves, usually.
I pay with a CC as much as possible, but it doesn't necessarily follow that I spend 20% more foolishly.
My shop takes credit cards... Goodness, if we didn't a pretty substantial amount of sales would be lost. Most of our bullion deals are cash or check, but some will pay the 3% to use a card.
@BAJJERFAN said:
I pay with a CC as much as possible, but it doesn't necessarily follow that I spend 20% more foolishly.
There are three kinds of people- those who are good with numbers and those who aren't.
One of my neighbors is one of those who steadfastly refuses to get a CC. The trick is for YOU to manage the card and not let the card manage you.
This is true. It's tricky if you go on vacation or "go shopping". In those cases, restraint is necessary. But it is a no-brainer to use a CC for routine expenses which you have to pay anyway: cell phone, cable/internet, insurance (if they let you), groceries, etc.
I went to a restaurant for lunch a few months ago. Unbeknownst to me they don’t accept cash and I didn’t have my wallet with me. I told them I would come back later and pay them. I wound up getting a free meal.
@skier07 said:
I went to a restaurant for lunch a few months ago. Unbeknownst to me they don’t accept cash and I didn’t have my wallet with me. I told them I would come back later and pay them. I wound up getting a free meal.
Are you really that dishonest? Remind me not to buy any coins from you.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
@skier07 said:
I went to a restaurant for lunch a few months ago. Unbeknownst to me they don’t accept cash and I didn’t have my wallet with me. I told them I would come back later and pay them. I wound up getting a free meal.
Are you really that dishonest? Remind me not to buy any coins from you.
Oops. The restaurant told me that coming back was unnecessary and lunch was on them.
@skier07 said:
I went to a restaurant for lunch a few months ago. Unbeknownst to me they don’t accept cash and I didn’t have my wallet with me. I told them I would come back later and pay them. I wound up getting a free meal.
Are you really that dishonest? Remind me not to buy any coins from you.
Oops. The restaurant told me that coming back was unnecessary and lunch was on them.
It sounded like you didn't come back to pay them as you promised and was now bragging about it. Thanks for the clarification.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
@skier07 said:
I went to a restaurant for lunch a few months ago. Unbeknownst to me they don’t accept cash and I didn’t have my wallet with me. I told them I would come back later and pay them. I wound up getting a free meal.
Are you really that dishonest? Remind me not to buy any coins from you.
Oops. The restaurant told me that coming back was unnecessary and lunch was on them.
It sounded like you didn't come back to pay them as you promised and was now bragging about it. Thanks for the clarification.
exactly! I was ready to start whaling on @skier07 (virtually whaling, of course)...
100th pint of blood donated 7/19/2022 . Transactions with WilliamF, Relaxn, LukeMarshal, jclovescoins, braddick, JWP, Weather11am, Fairlaneman, Dscoins, lordmarcovan, Collectorcoins, SurfinxHI, JimW. God so loved the world that he gave his only begotten son, that who so believeth in him should not perish but have everlasting life.
I pay with a CC as much as possible, but it doesn't necessarily follow that I spend 20% more foolishly.
Hopefully not. The average is 20%. Some do better, some worse. A few well-disciplined people manage it well, but there is no denying that most people have less insight into their subconscious decisions than they realize.
Whether it’s cost, risk mgt, cash flow needs, etc,, LSC’s don’t take credit cards. Many things like bullion are low spread, move it fast material. They want cash money not some BS like Cards.
Deal with it, bring adequate cash. They don’t care what you think about it neither do I if they won’t pay me cash at shows. Some player off the bourse does not set my business policy.
@Cougar1978 said:
Whether it’s cost, risk mgt, cash flow needs, etc,, LSC’s don’t take credit cards. Many things like bullion are low spread, move it fast material. They want cash money not some BS like Cards.
Deal with it, bring adequate cash. They don’t care what you think about it neither do I if they won’t pay me cash at shows.
>
>
Who are you speaking to? OP wanted to know if 'no cards' was common for LCS. Apparently common but not universal, as shown here:
100th pint of blood donated 7/19/2022 . Transactions with WilliamF, Relaxn, LukeMarshal, jclovescoins, braddick, JWP, Weather11am, Fairlaneman, Dscoins, lordmarcovan, Collectorcoins, SurfinxHI, JimW. God so loved the world that he gave his only begotten son, that who so believeth in him should not perish but have everlasting life.
@jmlanzaf said:
Studies show that people spend 20% more when using credit cards. It's one of the reasons people argue for using cash when buying.
Spend 20% more? You must know different coin collectors than I do. I've watched them walk away from a show upon finding out there was a $1 charge for admission.
@jmlanzaf said:
Studies show that people spend 20% more when using credit cards. It's one of the reasons people argue for using cash when buying.
Spend 20% more? You must know different coin collectors than I do. I've watched them walk away from a show upon finding out there was a $1 charge for admission.
That's not a coin study. It's a general study of shopping behavior. There are a number of studies, some showing as much as 80+% higher purchases in certain situations (college student, game tickets).
@jmlanzaf said:
Studies show that people spend 20% more when using credit cards. It's one of the reasons people argue for using cash when buying.
Spend 20% more? You must know different coin collectors than I do. I've watched them walk away from a show upon finding out there was a $1 charge for admission.
That's not a coin study. It's a general study of shopping behavior. There are a number of studies, some showing as much as 80+% higher purchases in certain situations (college student, game tickets).
Which is why I advised and assisted my young-adult children to auto-pay e.g. internet or cell phone bill via credit card, but use it only for emergencies otherwise. Builds credit score, encourages prudent spending habits.
(Another poster recommended this credit card approach as well...)
100th pint of blood donated 7/19/2022 . Transactions with WilliamF, Relaxn, LukeMarshal, jclovescoins, braddick, JWP, Weather11am, Fairlaneman, Dscoins, lordmarcovan, Collectorcoins, SurfinxHI, JimW. God so loved the world that he gave his only begotten son, that who so believeth in him should not perish but have everlasting life.
Comments
Your view may assume rational and educated consumers. Higher prices (especially on low margin items) might well be a competitive disadvantage to some buyers. Lowest prices, with an extra fee for using credit, seems very reasonable, but probably cheeses off some potential buyers
So does cash only, and so does slightly higher prices and no-fee credit accepted. I could go dig up some research, but too lazy^H^H^H^Hbusy right now...
Gosh! Gee wizz! I wonder the same thing. 🤔
I have a cash paying customer who regularly buys silver. With that, he barters for goods and services with any and all who want to transact that way. And many do.... so I'm told.
It was suggested that you could just raise prices to cover the 3%. @brycem simply pointed out that you don't always have the ability to raise prices 3%. How could you possibly argue that being 3% higher than your competitors would not be bad for business?
I haven't seen ^h in years. I've wanted to use it but feared no one was left who understood vi.
Vi, rot23, Usenet, unix... ☺️
I take cash, credit, debit, and PayPal/Venmo in my business (which happens to be coins) since it is my reasoning that I am getting money from you one way or another. Never had issues.
Yet they blithely walk around the shows with whatever they have purchased.
I've read of some places that accept only CCs in order to reduce the amount of employee theft when cash is taken.
I pay with a CC as much as possible, but it doesn't necessarily follow that I spend 20% more foolishly.
There are three kinds of people- those who are good with numbers and those who aren't.
My shop takes credit cards... Goodness, if we didn't a pretty substantial amount of sales would be lost. Most of our bullion deals are cash or check, but some will pay the 3% to use a card.
My YouTube Channel
One of my neighbors is one of those who steadfastly refuses to get a CC. The trick is for YOU to manage the card and not let the card manage you.
This is true. It's tricky if you go on vacation or "go shopping". In those cases, restraint is necessary. But it is a no-brainer to use a CC for routine expenses which you have to pay anyway: cell phone, cable/internet, insurance (if they let you), groceries, etc.
I went to a restaurant for lunch a few months ago. Unbeknownst to me they don’t accept cash and I didn’t have my wallet with me. I told them I would come back later and pay them. I wound up getting a free meal.
Are you really that dishonest? Remind me not to buy any coins from you.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Oops. The restaurant told me that coming back was unnecessary and lunch was on them.
It sounded like you didn't come back to pay them as you promised and was now bragging about it. Thanks for the clarification.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
exactly! I was ready to start whaling on @skier07 (virtually whaling, of course)...
Hopefully not. The average is 20%. Some do better, some worse. A few well-disciplined people manage it well, but there is no denying that most people have less insight into their subconscious decisions than they realize.
Whether it’s cost, risk mgt, cash flow needs, etc,, LSC’s don’t take credit cards. Many things like bullion are low spread, move it fast material. They want cash money not some BS like Cards.
Deal with it, bring adequate cash. They don’t care what you think about it neither do I if they won’t pay me cash at shows. Some player off the bourse does not set my business policy.
>
>
Who are you speaking to? OP wanted to know if 'no cards' was common for LCS. Apparently common but not universal, as shown here:
Spend 20% more? You must know different coin collectors than I do. I've watched them walk away from a show upon finding out there was a $1 charge for admission.
That's not a coin study. It's a general study of shopping behavior. There are a number of studies, some showing as much as 80+% higher purchases in certain situations (college student, game tickets).
Some discussion here
https://www.nerdwallet.com/article/credit-cards/credit-cards-make-you-spend-more
Which is why I advised and assisted my young-adult children to auto-pay e.g. internet or cell phone bill via credit card, but use it only for emergencies otherwise. Builds credit score, encourages prudent spending habits.
(Another poster recommended this credit card approach as well...)