Best cash discount program and selling guides? Let’s Make Things Easier With an Example: A store sells baseball gloves at the price of $10 each. There’s a signage on the door that says, ‘We have a discount on cash payment while all credit card payments will be made on full price”. Now, if the payment is made via credit card, you will charge $10.5, which the customer will assume is the actual non-discounted cost of the gloves. Now let’s put this example in our previous 7 Eleven kind of store scenario. Here, we will have a 4% surcharge on credit card payment instead of $0.50 from the example because we are allowed to have a 4% charge max. So if the baseball gloves seller is doing $10k a month in credit card payments, we will tell him that instead of paying a $300 fee from your pocket, you put a 4% fee on credit card payments.
Examples of Surcharges? A variety of industries, such as the telecommunications and cable industries, regularly use surcharges to offset costs imposed on the business through federal, state, or local regulations. When regulations impose additional costs on the market, the business may adjust the surcharge instead of the price of the good or service. The fee is still being passed on to the consumer, but it is being done so in a more indirect way, through the surcharge. For example, a customer may see a regulatory recovery fee on a cable bill. The purpose of the regulatory recovery fee is to offset the burden on the cable provider for certain voice service fees imposed by various government entities. Another example of a cable surcharge is the fee to provide sports programming to the viewing market. In this case, the charge is to offset the premium the cable provider pays for the ability to broadcast the events.
Subscriptions are all about relationships. Customers are buying something once and then forgetting about; they are spending money on your product on a recurring basis. Whether it’s the beginning of the customer cycle, or throughout, you must build trust with your customers in order to successfully sell them your product/service, and to ensure retention and renewal. But how do you build trust? It begins with developing a rapport, asking questions and truly listening. You can connect with prospects on business-centric social media sites like LinkedIn. Make sure to follow-up and stay engaged. Show the customer you genuinely care.
What is cash discounting? Cash discounting is just like the name says. It is a discount you will get if you pay using cash. The merchant has to pay the processing fees of credit card if the customer chooses to pay with the credit card. So, the merchant will surely increase the price to recover the fees. Now, if the customer decides to pay via cash, there is no need to charge extra fees, right? So, they will get a cash discount. The cash discount is only applicable if the customer pays via check or cash. A cash discount is a great alternative to a surcharge. Continuing the example, if a surcharge is illegal then what will the merchant do? Well, they will simply increase the product price to 102 and offer a cash discount of 2. Now, if the customer pays using a credit card, they will have to pay 102 but if they pay using cash, they will only have to pay 100. The 2 bucks discount will be given here. See additional information at Best Cash Discount Program.
The way to do this is to gain permission to give an overview. Say something like, “I realize we’ve been working together for a few years, and we’ve never done a general overview so you know what we bring to the table. We have some major differences from our competitors in terms of offerings, and some new areas that I think could make a difference for you. At some point, do you mind if I give you the round-the-world overview?”