Does This Encourage People To Buy?

posted 20 Jun 2013, 03:49 by Dean Allan   [ updated 20 Jun 2013, 03:57 ]

There has been an interesting trend with a group of small retailers in my local area over recent times.
 
A number of takeaway food outlets are now adding what amounts to a "levy" to the purchase price when customers are paying for their orders by credit card.

This credit card "fee" is relatively insignificant in the whole scheme of things - it seems that 50 cents is the "going rate" at the moment - but it is fascinating to see the reaction from customers when they are told that they have to pay this fee. 

Last weekend I saw one customer actually walk out of a shop in disgust when told he had to pay this fee - and he left behind an unpaid order of almost $40.00!!

Only today I heard another person at a different shop say that this was the last time she was buying from there, because adding a credit card fee to the bill was "obscene" (her words).

It begs the question - why would shop owners risk losing business for such an insignificant amount of money?

Wouldn't it be smarter to simply add 10 cents to every item of food on your menu?

A 10 cent increase to takeaway food items would virtually go unnoticed and this way, shop owners get their increase to cover their "merchant fee" (if this is why they have imposed the charge) and at the same time, customers do not get angry.

Better still, those customers who pay by cash also pay the 10 cent increase per item, so the shop owners could actually turn a public "negative" into an increase in profit!!!!

Is there anything that you do in your business that could potentially cause your customers to get annoyed with your product or service?

If so, is it possible to turn this potential negative into a profitable positive?