Advisory : Payment Method - Cash or Credit Card or Instalment Plan

[Andrew Tay]

To add on to my previous post.

When we calculate our selling price, we take the 2% merchant fee into consideration.. In another words, our selling price might sometimes be a litttle higher than smaller companies.

There are also exceptional cases - these are mainly for very low profit margin items where the selling price is controlled throughout the industry.
We don't say "there is a discount if you use cash', we say there is an additional 2% if you use credit card.

hi jason....noted with thanks.

the main point i want to drive in this thread is that.....in most cases.....using credit card or paying by cash does not make a difference at most ADs. but using credit card is a better choice cos we can collect points thru this purchase....esp using amex for THG.....i have redeemed a free camera and more than 700 bucks of food vouchers so far...cos using amex to buy my glasshutte original as well as my panerai 233 from them.

[edsonchan]

To add on to my previous post.

When we calculate our selling price, we take the 2% merchant fee into consideration.. In another words, our selling price might sometimes be a litttle higher than smaller companies.

There are also exceptional cases - these are mainly for very low profit margin items where the selling price is controlled throughout the industry.
We don't say "there is a discount if you use cash', we say there is an additional 2% if you use credit card.

[edsonchan]

Andrew.. I work in a company that deals with huge amount of money as well.. Certainly comparable to THG or Cortina relating to your stories.

We worked the sae way as well... There is no difference in the price whether or not the consumer is using Cash, Credit Card or 0% installment plans....

First of all, all the banks are competing with each other as well.. Our merchant bank is giving us a very very low merchant fee - let's say it is close to 1%

For installment plans, it is still less than 2%....

To ensure that the merchant fee stays like this, we need to clock a certain amount every work year. When the banks reviews, they will let us know if we are eligible to maintain that kind of merchant fee or to increase our merchant fee in the event if we did not meet the min amount. Therefore, customers who are using credit card in my company kind of help in a way as well.

Most company like this do not want to give that 1 - 2% as a discount mainly because it sounds too petty.. Dealing with cash has a risk on its own as well..

Most of the pre-owned shops tends to use cash to get their goods from their suppliers. And when they sell the item, they prefer cash. To add on, they are almost certain to be charge the 'normal close to 2%' merchant fee when their customer pay using CC. Therefore, they offer that few percent discount for people who are paying in cash. Cash is king can be applied to these shops..

Hope this is clear enough.

[Nooch]

CC installment if cash is same price..get points.

[exxondus]

I will use CASH if can cheaper. Else if same price, then CC installment plan

[seiko.citizen]

cash for me, since i have no relationship with any AD. But if the AD offer me same price for cash/credit, i will then choose credit (rewards reason, 55days interest free, etc.)

[rh1667]

Personally, I have been using Credit card for my watch purchase.
Whenever i ask if there is any further discount if i use cash, the answer is no.
So...use CC and earn the points so that can use it to redeem food or shopping voucher....indirect discount mah....

[Andrew Tay]

Well, not necessarily true based on your 2 stories. I still think that the relation between you and the dealer count more than just method of payment to determine the final price. Not saying that paying cash/credit card will always be the same price but just that it won't differ much I think.

dun forget when u use credit card to pay for watches....u can accumulate points from all this purchase too.

when i use my amex card at THG....it is 10 x bonus points and i have use those points to redeem a digital camera and recently, i use the points to redeem 400 bucks of food voucher for tung lok restaurant.

if i pay cash.....i dun think i can accumulate points to get all those free stuff from credit card company.

that is why i want to discuss this topic....and let those people who think that using cash can get a good deal out of this.

[Wenda]

Well, not necessarily true based on your 2 stories. I still think that the relation between you and the dealer count more than just method of payment to determine the final price. Not saying that paying cash/credit card will always be the same price but just that it won't differ much I think.

[Oceanklassik]

Hahaha... u go parkway dun even intend to look at TV in te end oso bought one TV remember ? Hope to ride in ur new car bro .

[wolfeyes1974]

Now I know...

see only..no need $$...nvr buy also what...

[Hary]

Now I know...

U think he went to see Cherry cars? kekeke

[Oceanklassik]

no leh...i went to merz showroom and they charge the same price for loan and cash...no difference...the sales person told me no diff for them cos they earn comm from car sales not loan..they're ok if we want to use our own insurance company and they've 3 banks offering same interest rates. i think different car companies operate differently...

cheers

Now I know...

[ohlins]

i think different car companies operate differently...

cheers

agreed. that's why i said usually.

[wolfeyes1974]

can but cash price usually 2-3k higher .........

no leh...i went to merz showroom and they charge the same price for loan and cash...no difference...the sales person told me no diff for them cos they earn comm from car sales not loan..they're ok if we want to use our own insurance company and they've 3 banks offering same interest rates. i think different car companies operate differently...

cheers