Coin is awesome - but my mind is on fees

http://istommydrunk.svbtle.com/coin-an-awesome-step-in-a-sideways-direction

by tomasien • 13 years ago

2 4 13 years ago

istommydrunk.svbtle.com

PaulHoule2• 13 years ago

Yeah and the rent is too damn high too.

Compared to all the costs of marketing and doing business (like the landlord who'd rather charge $2X for rent and have 30% of the storefronts be idle), credit card fees are nothing. Storefronts, employees, shipping and advertising eat up much more of the cost of a purchase than does the credit card fees.

tomasien2• 13 years ago

I appreciate the feedback! I think if you talk to business owners, you'll find that's not true. It's the second highest store-leve cost for most businesses, including Big Box.

I, for example, was running a monthly ramen-box business charging $20 per month per box. My costs were:

Ramen: $7 Shipping: $5 Credit Card fees: $1.20

That means without CC fees, my profit went from $8 a box to $6.80. That's a 15% reduction on my profit, and that's without labor costs factored in. With labor factored in, that's my whole profit, 100%. Sure I could have raised the price or whatever, but there's always options: my point is you can see how destructive that can be.

PaulHoule2• 13 years ago

And without the credit card people don't have a way to pay so you don't have a business at all.

Coin is awesome - but my mind is on fees

Related Stories