Does it make since for "Mom & Pop" operations to not take credit cards
95- manlypoetryman
- 1733 posts
- Joined: 7 months ago
- Hubs: 91
- Fans: 246
In the world today...just about everyone is packing plastic.
Does it make sense for a small "Mom and Pop" store operation to do cash business only...in these times?
Example: There are many old, small business restaraunts in the area I work. I finally made it to one of them and discovered they only take cash or check (? check for food...from just anyone...is very old school...unless you are paying a check verification service. This particular store had no sign saying they had a check verification service.)
Now...I know Point of Sale systems take at least 3% off the top for your sale. But...how does that compare to a sale that is lost for good. The chances for me to have cash in hand...enough for a good lunch...and for me to remember that now I can go eat at that place...are very slim. So, that particular business has more or less lost a customer...for all time. As a business manager...the thought of losing potential customers and/or new clients...scares me more than losing a 3% off my total profit.
Any thoughts by fellow business persons out there?
91- Jeffrey Neal
- 377 posts
- Joined: 2 months ago
- Hubs: 23
- Fans: 92
Not only do the processors take their percentage off the top, my understanding is that most of them also charge for the purchase or leasing of the actual machine and potentially other fees. Many of the payment processing services that sell to small businesses are a bit shady. Perhaps this one got scammed already?
You are correct in that they are limiting their potential customers somewhat, but if it costs them more than they bring in from cards, it's a simple business decision to make.- 95
- manlypoetryman
- 1733 posts
- Joined: 7 months ago
- Hubs: 91
- Fans: 246
Jeffrey Neal wrote:
Not only do the processors take their percentage off the top, my understanding is that most of them also charge for the purchase or leasing of the actual machine and potentially other fees. Many of the payment processing services that sell to small businesses are a bit shady. Perhaps this one got scammed already?
You are correct in that they are limiting their potential customers somewhat, but if it costs them more than they bring in from cards, it's a simple business decision to make.Good way to look at it. I get the being "Burnt" once thing...could stop a small business from playing with credit cards. I guess I've always been approached by big banks for a POS system. They were willing to set-up and do installation...at no charge...to get a piece of the action. However, there were fees if you needed a POS machine replaced/ and or repaired. And probably some other incidental surcharges. So, you make a good point about any additional fees. Still...how many sales are they losing per day...to not have credit card sign posted in the window?
89- prettydarkhorse
- 1993 posts
- Joined: 2 months ago
- Hubs: 83
- Fans: 170
manlypoetryman wrote:
In the world today...just about everyone is packing plastic.
Does it make sense for a small "Mom and Pop" store operation to do cash business only...in these times?
Example: There are many old, small business restaraunts in the area I work. I finally made it to one of them and discovered they only take cash or check (? check for food...from just anyone...is very old school...unless you are paying a check verification service. This particular store had no sign saying they had a check verification service.)
Now...I know Point of Sale systems take at least 3% off the top for your sale. But...how does that compare to a sale that is lost for good. The chances for me to have cash in hand...enough for a good lunch...and for me to remember that now I can go eat at that place...are very slim. So, that particular business has more or less lost a customer...for all time. As a business manager...the thought of losing potential customers and/or new clients...scares me more than losing a 3% off my total profit.
Any thoughts by fellow business persons out there?hi manly,,,hmm they could have at leats post a note outside their establishement to let people know about it!
see youve got a new tractor, its bigger now, YAY!
82- Cagsil
- 4782 posts
- Joined: 2 months ago
- Hubs: 42
- Fans: 136
Yes, it makes sense.
- 91
- Jeffrey Neal
- 377 posts
- Joined: 2 months ago
- Hubs: 23
- Fans: 92
manlypoetryman wrote:
Good way to look at it. I get the being "Burnt" once thing...could stop a small business from playing with credit cards. I guess I've always been approached by big banks for a POS system. They were willing to set-up and do installation...at no charge...to get a piece of the action. However, there were fees if you needed a POS machine replaced/ and or repaired. And probably some other incidental surcharges. So, you make a good point about any additional fees. Still...how many sales are they losing per day...to not have credit card sign posted in the window?
I don't know...was the food good?
I can't think of a place off the top of my head that doesn't accept cards, and I'd be in a similar boat as you if I found that out after finishing a meal. The way barbecue is around here, though, some of these places have a loyal, almost cult following, and would probably get on just fine without the cards. Jeffrey Neal wrote:
Not only do the processors take their percentage off the top, my understanding is that most of them also charge for the purchase or leasing of the actual machine and potentially other fees. Many of the payment processing services that sell to small businesses are a bit shady. Perhaps this one got scammed already?
You are correct in that they are limiting their potential customers somewhat, but if it costs them more than they bring in from cards, it's a simple business decision to make.Yes there is a monthly fee for the service &/or equipment. Maybe they feel this is one of many monthly expenses they cannot afford.
97- thranax
- 2058 posts
- Joined: 18 months ago
- Hubs: 43
- Fans: 304
Yes it makes sense, people can rip them off with credit cards and they don't have much recourse if it happens. This way, the cash is in hand no problem!
~thranax~- 95
- manlypoetryman
- 1733 posts
- Joined: 7 months ago
- Hubs: 91
- Fans: 246
prettydarkhorse wrote:
manlypoetryman wrote:
In the world today...just about everyone is packing plastic.
Does it make sense for a small "Mom and Pop" store operation to do cash business only...in these times?
Example: There are many old, small business restaraunts in the area I work. I finally made it to one of them and discovered they only take cash or check (? check for food...from just anyone...is very old school...unless you are paying a check verification service. This particular store had no sign saying they had a check verification service.)
Now...I know Point of Sale systems take at least 3% off the top for your sale. But...how does that compare to a sale that is lost for good. The chances for me to have cash in hand...enough for a good lunch...and for me to remember that now I can go eat at that place...are very slim. So, that particular business has more or less lost a customer...for all time. As a business manager...the thought of losing potential customers and/or new clients...scares me more than losing a 3% off my total profit.
Any thoughts by fellow business persons out there?hi manly,,,hmm they could have at leats post a note outside their establishement to let people know about it!
see youve got a new tractor, its bigger now, YAY!Hey PDK! How is ya' ? Really...trying to shake up some ol' thinking...I mean we are at 2010...by a few days...? Although...this may not be the right business forum to poll...I bet we still have some pretty saavy business folk here!
You like my latest avatar shot of the ol' tractor...? This was a before shot...of the ol' girl before she got some much needed paint and body work...! She is a 1942 International Farmall...and actually...she is only a figment of my imagination
. My avatar...helps take me to my happy place when I write! The ol' tractor is kind of the icing on the cake...It helps take me to places (in my dreams) that are big enough acreage to need a tractor! Have a good one PDK...! Also keep in mind that "cash businesses" do not always report 100% of their income to the IRS. That alone could be reason enough to not accept credit cards.
- 95
- manlypoetryman
- 1733 posts
- Joined: 7 months ago
- Hubs: 91
- Fans: 246
Jeffrey Neal wrote:
manlypoetryman wrote:
Good way to look at it. I get the being "Burnt" once thing...could stop a small business from playing with credit cards. I guess I've always been approached by big banks for a POS system. They were willing to set-up and do installation...at no charge...to get a piece of the action. However, there were fees if you needed a POS machine replaced/ and or repaired. And probably some other incidental surcharges. So, you make a good point about any additional fees. Still...how many sales are they losing per day...to not have credit card sign posted in the window?
I don't know...was the food good?
I can't think of a place off the top of my head that doesn't accept cards, and I'd be in a similar boat as you if I found that out after finishing a meal. The way barbecue is around here, though, some of these places have a loyal, almost cult following, and would probably get on just fine without the cards.Yeah...this was an ol' Bar B Q Place...but not one with a big line for lunch ? We have some of the ol' places nearby...that have a line and could ask for whatever they wanted to get paid!
This place I went to today was...not like that. - 95
- manlypoetryman
- 1733 posts
- Joined: 7 months ago
- Hubs: 91
- Fans: 246
1974, rmcrayne, and thranax...all make good points...
94- Flightkeeper
- 1373 posts
- Joined: 3 months ago
- Hubs: 44
- Fans: 134
Does the Mom & Pop store cater to a regular local clientele? It could be that having everything paid for in cash in a business where they have a lot of regulars is just a lot easier to run because it's simpler accounting.
I don't even carry cash at all. I am one of the guys who would probably walk out the door and go to their competition. Also, it's easier for employees to rip off a company when dealing in cash so they should consider that. I remember when I worked in retail 20 years ago I hated walking to the bank drop at night with loads of cash. I don't have any proof but I think people tend to count their pennies when paying in cash. A little more free and easy when paying with plastic. I know that I tip better and think less about what I'm spending because plastic seems "less real" somehow.
- 95
- manlypoetryman
- 1733 posts
- Joined: 7 months ago
- Hubs: 91
- Fans: 246
Flightkeeper wrote:
Does the Mom & Pop store cater to a regular local clientele? It could be that having everything paid for in cash in a business where they have a lot of regulars is just a lot easier to run because it's simpler accounting.
I think that's it...in this case. They just have so much repeat business...and some word of mouth...that they are fine with their current systems in place...of handling transactions. I'll feel sorry for them...if their demographics ever change in any way...and they fail to make swift changes to match...!
- 89
- prettydarkhorse
- 1993 posts
- Joined: 2 months ago
- Hubs: 83
- Fans: 170
manlypoetryman wrote:
prettydarkhorse wrote:
manlypoetryman wrote:
In the world today...just about everyone is packing plastic.
Does it make sense for a small "Mom and Pop" store operation to do cash business only...in these times?
Example: There are many old, small business restaraunts in the area I work. I finally made it to one of them and discovered they only take cash or check (? check for food...from just anyone...is very old school...unless you are paying a check verification service. This particular store had no sign saying they had a check verification service.)
Now...I know Point of Sale systems take at least 3% off the top for your sale. But...how does that compare to a sale that is lost for good. The chances for me to have cash in hand...enough for a good lunch...and for me to remember that now I can go eat at that place...are very slim. So, that particular business has more or less lost a customer...for all time. As a business manager...the thought of losing potential customers and/or new clients...scares me more than losing a 3% off my total profit.
Any thoughts by fellow business persons out there?hi manly,,,hmm they could have at leats post a note outside their establishement to let people know about it!
see youve got a new tractor, its bigger now, YAY!Hey PDK! How is ya' ? Really...trying to shake up some ol' thinking...I mean we are at 2010...by a few days...? Although...this may not be the right business forum to poll...I bet we still have some pretty saavy business folk here!
You like my latest avatar shot of the ol' tractor...? This was a before shot...of the ol' girl before she got some much needed paint and body work...! She is a 1942 International Farmall...and actually...she is only a figment of my imagination. My avatar...helps take me to my happy place when I write! The ol' tractor is kind of the icing on the cake...It helps take me to places (in my dreams) that are big enough acreage to need a tractor! Have a good one PDK...!
You deserve that one manly, BIG and handsome tractor!
- 95
- manlypoetryman
- 1733 posts
- Joined: 7 months ago
- Hubs: 91
- Fans: 246
EJF PRO wrote:
I don't even carry cash at all. I am one of the guys who would probably walk out the door and go to their competition. Also, it's easier for employees to rip off a company when dealing in cash so they should consider that. I remember when I worked in retail 20 years ago I hated walking to the bank drop at night with loads of cash. I don't have any proof but I think people tend to count their pennies when paying in cash. A little more free and easy when paying with plastic. I know that I tip better and think less about what I'm spending because plastic seems "less real" somehow.
I think that you are right...and at one point it was proven (?)...that people are a little free-er (sp?) with plastic than with actual cash...Good point! And...also for convienience...I prefer to just whip out the plastic...than bother with always having cash on hand!
- 95
- manlypoetryman
- 1733 posts
- Joined: 7 months ago
- Hubs: 91
- Fans: 246
prettydarkhorse wrote:
manlypoetryman wrote:
prettydarkhorse wrote:
hi manly,,,hmm they could have at leats post a note outside their establishement to let people know about it!
see youve got a new tractor, its bigger now, YAY!Hey PDK! How is ya' ? Really...trying to shake up some ol' thinking...I mean we are at 2010...by a few days...? Although...this may not be the right business forum to poll...I bet we still have some pretty saavy business folk here!
You like my latest avatar shot of the ol' tractor...? This was a before shot...of the ol' girl before she got some much needed paint and body work...! She is a 1942 International Farmall...and actually...she is only a figment of my imagination. My avatar...helps take me to my happy place when I write! The ol' tractor is kind of the icing on the cake...It helps take me to places (in my dreams) that are big enough acreage to need a tractor! Have a good one PDK...!
You deserve that one manly, BIG and handsome tractor!
Thanks...PDH...Don't know why I keep writing...PDK...must be some ol' initial acronyms stuck in the ol' computer!
96- Lisa HW
- 2508 posts
- Joined: 2 years ago
- Hubs: 263
- Fans: 549
We have a mom-and-pop store near us. One time I was making a small purchase and asked if it was too small to use a credit card. The woman said it wasn't and seemed baffled that I asked. I said how the local gift shop requires a purchase of $10 or more before they'll accept a card, because the guy that runs the place says it isn't worth it for him to take cards for small purchases. This woman said her view is if a store wants to make the sales taking cards (credit and debit) is just part of business. I suppose, depending on the business, it could make sense for some people. In general, these days most people use a card of one sort or another; so I'm not sure it makes the best sense not to take cards. (The point is that some business can/do set a minimum amount for card purchases.)
- 89
- prettydarkhorse
- 1993 posts
- Joined: 2 months ago
- Hubs: 83
- Fans: 170
manlypoetryman wrote:
prettydarkhorse wrote:
manlypoetryman wrote:
Hey PDK! How is ya' ? Really...trying to shake up some ol' thinking...I mean we are at 2010...by a few days...? Although...this may not be the right business forum to poll...I bet we still have some pretty saavy business folk here!
You like my latest avatar shot of the ol' tractor...? This was a before shot...of the ol' girl before she got some much needed paint and body work...! She is a 1942 International Farmall...and actually...she is only a figment of my imagination. My avatar...helps take me to my happy place when I write! The ol' tractor is kind of the icing on the cake...It helps take me to places (in my dreams) that are big enough acreage to need a tractor! Have a good one PDK...!
You deserve that one manly, BIG and handsome tractor!
Thanks...PDH...Don't know why I keep writing...PDK...must be some ol' initial acronyms stuck in the ol' computer!
its ok, they are the same, LOL
