The business has less cash to worry about safely getting to the bank. Employees are clearly the #1 threat to steal from a business and cash heavy businesses are prime targets.

Also, you get tons of business from people who don't have the means to use your business otherwise. This includes college kids with their daddies credit card, people who live paycheck to paycheck, and people who never intend to pay their credit card balances.

Not to mention people run up much higher tabs/bills on credit than they do with cash.

The credit card company is offering you a fairly valuable service for 3%.

4/3/2011 1:14:40 AM

Has anybody else noticed that all of Genius's business-related threads boil down to, "It's everyone's fault but mine?"

4/3/2011 2:45:49 AM

There is nothing to fault me on. This isn't even an issue about me.

4/3/2011 3:09:36 AM

not you

4/3/2011 3:28:57 AM

Have you ever thought about just raising your prices 3-5%? If people don't care about $0.30 like you suggest then why are you not capturing this revenue by marking your prices up?

4/3/2011 4:27:00 AM

face, I can afford the credit card fees. But it sure would be nice to have an extra $4000 at the end of the year if it didn't cost me money to receive money.

$4000 could buy me 551 more hours of labor or roughly 4 months of labor for one part time employee.

4/3/2011 4:32:55 AM

Have you ever thought about just raising your prices 3-5%? With the extra $4,000 a year I bet you could buy 551 or more hours of labor (which equates to roughly one part time employee for 4 month)...

[Edited on April 3, 2011 at 4:44 AM. Reason : a]

4/3/2011 4:44:31 AM

People already complain about prices,but that's natural. Capitalism keeps me from raising my prices to compensate for every rate hike. For instance, my pizzas are $12.99 while the major chains are $10. Major chains buy 1 million tons of cheese weekly, so they get it much much much cheaper ($1.34 is what dominos is paying per lb of cheese, I'm paying $3.89 per pound, I only order 90 lbs a week) I don't feel I could go higher than $12.99 without breaking some sort of unwritten threshold.

That said, I raise the appetizer prices but that barely covers the yearly rent increases and other bill increases. Like I said, $4000 isn't THAT much of money and I CAN cover it, BUT when you have so many OTHER obligations already - then it is the nickle taken out of a dollar that is already 80%-90% used up. It would be nice to have it.

[Edited on April 3, 2011 at 5:05 AM. Reason : .]

4/3/2011 5:04:27 AM

Have you ever thought about buying more pounds of cheese so that you can get it much much much cheaper ($1.34 is what dominos is paying per lb of cheese, you are paying $3.89 per pound).

4/3/2011 8:41:13 AM

^Perishability.

^^ like face already posted on this page, the CC companies are providing what is probably a pretty valuable service for you for that 3-5%. you've already posted that you can't trust your employees, how many more posts would we see about your employees stealing from you if you ran cash only. Not to mention at the prices you're talking about ($13+) not taking cards would basically limit your market. The cc company also helps with your bookkeeping i'm sure.

btw: who the fuck posts a powerpoint menu, pdf995 that shit yo

[Edited on April 3, 2011 at 9:29 AM. Reason : .]

4/3/2011 9:20:34 AM

This organization may be able to help you out.

http://www.score.org/index.html

4/3/2011 9:43:40 AM

Quote :

"So...who should pay for fraud?" The criminal."

Criminals don't pay? Then what are they doing in jail?

What if a criminal can't pay monetarily (which I imagine is likely in the vast majority of low dollar value frauds)? Who should pay for fraud then?

4/3/2011 9:58:38 AM

^THEN WHO WAS PHONE?

4/3/2011 10:23:34 AM

^^ The insurance companies that they have.

4/3/2011 10:36:04 AM

No, I'm pretty sure all fraud costs are charged to GeniuSxBoY in the form of excessive cheese costs.

4/3/2011 10:50:47 AM

Quote :

"That's a great idea however when you're nickEL and diming people, people don't care about the 35 cents they're saving. It's too small. When you're a business and you deal with 35 cents times 15,000 transactions, only then does 35 cents matter "

Research suggests otherwise. Psychologically, that 35 cents, even 1 cent, affects consumers’ decisions.

4/3/2011 11:34:24 AM

I am so confused by this thread. When my business could no longer afford to process credit cards we had to choose between raising prices to compensate or switch to cash and get an ATM. We did the latter. It never occurred to me to cry about it on the internet.

4/3/2011 1:16:20 PM

Quote :

"Criminals don't pay? Then what are they doing in jail? What if a criminal can't pay monetarily (which I imagine is likely in the vast majority of low dollar value frauds)? Who should pay for fraud then?"

That's a whole different system of failure. Our judicial system.

You win a settlement? They go to jail.
Do you get your money back? No.
Would you rather get your money back? Yes.

I propose that our taxes fund a jail-workers program, in which they have to work for the city at minimum wage until they pay back what they owe x 2.

Simply sitting in a jailcell is not a punishment that fits the crime.

Quote :

"Research suggests otherwise. Psychologically, that 35 cents, even 1 cent, affects consumers’ decisions. "

Well if I give a cash discount, I'm shooting myself in the foot because a discount is the same as the fee and now I'd be paying a fee to the customers AND to the credit card companies for every transaction.

4/3/2011 1:17:26 PM

Not this fucking idiot again.

The dude who doesn't understand that business is about making money, not being a goddamn food artist. Shut the fuck up with these stupid whining threads about how you refuse to acknowledge your own retarded business plan that is never going to grow or increase your profitability.

Congrats with backing yourself into your own dead end job.

4/3/2011 1:47:04 PM

Didn't you say this was your dream? How about sticking to it for a while until you break even and start living more comfortably? Running a small business isn't a walk in the park, ya know.

4/3/2011 1:58:14 PM

Quote :

"Didn't you say this was your dream? How about sticking to it for a while until you break even and start living more comfortably? Running a small business isn't a walk in the park, ya know."

It's only not a walk in the park because I'm doing it legitimately.

No shortcuts.

I pay all my taxes and bills.

4/3/2011 7:51:56 PM

In one post you said that giving a cash discount won't help because people dont care about saving 35 cents.

In the next post you said you cant raise prices because of capitalism.

Which is it? Does your pizza have elastic or inelastic demand?

Please note I'm not trying to attack you or your business model. I'm just trying to help you be a thinking, surviving business owner.

Your posts make it sound like you have a lot of heart for the survival of your business but perhaps not an equal amount of thought behind it.

4/3/2011 10:23:38 PM

Why do you think I'm failing? Are you listening to the majority opinion in these threads? I'll tell you the good news. They're wrong.

If I don't get a single customer in my door starting right now, I could pay all my bills and rent for the next two years without going out of business. It's completely stupid to think I'm failing. I paid off my student loans in the first year of business alone.

Gotta stop listening to the majority, especially from the idiots on wolfweb. Get the facts for yourself.

Quote :

"In one post you said that giving a cash discount won't help because people dont care about saving 35 cents. In the next post you said you cant raise prices because of capitalism."

If you sell your pizza at $5, you'll sell a lot more pizzas than the same pizza at $12.99. If the pizza costs me $5 to make, then I could sell 1 $12.99 pizza and profit more money than if I sold $1 million pizzas.

If I raise my price to $100 a pizza, I'd only have to sell 1 pizza to profit the same as 13 pizzas at $12.99. Would someone buy a $100 pizza that only cost $5 to make? Not likely.

So now we have a minimum/maximum problem. We want to charge the maximum price acceptable that we think the maximum people would pay to make the most profit. There is no right answer because there are too many variables. Would people want to pay $13.99 for a pizza when $12.99 is the highest price of any comparable restaurant? Remember, customers hardly ever pay attention to the number after decimal, just the dollar amount. Even though the it's only a penny difference from 12.99 and 13, the internal alarm bell buzzes.

To answer your question: Raising the price 3% might pay for a single transaction fee, but I'd lose out on overall revenue by attracting less customers.




[Edited on April 3, 2011 at 11:13 PM. Reason : .]

4/3/2011 11:08:47 PM

How about an entire line of Charlie Sheen themed line of pizzas? "Tiger Blood" or "Warlock" pizza. Novelty pizzas based on the latest headlines?

4/3/2011 11:30:36 PM

Quote :

"Would people want to pay $13.99 for a pizza when $12.99 is the highest price of any comparable restaurant?"

If you made a legit good pizza.

4/3/2011 11:33:37 PM

Even a legit good pizza, you'd buy seldomly for it is "expensive". You'd make someone else selling $8 pizzas more money by ordering there 4 or 5 times a month.

4/3/2011 11:38:55 PM

If you are doing so well and making so much money then STOP fucking complaining about the ignorant shit you bitch and moan about here all the fucking time.

You haven't contributed a goddamn thing to this site the entire time you've been here. It's been one bullshit lie after another, followed up by complaining and being a schizo thinking that everyone but you is a liar and a cheat that you are morally and ethically superior to.

Shut the fuck up dude.

4/4/2011 2:54:18 AM

Are you whining?

4/4/2011 4:17:58 AM

What pizza place does this guy own

4/4/2011 7:15:07 AM

Pizza Shed

4/4/2011 7:16:30 AM

Quote :

"Even a legit good pizza, you'd buy seldomly for it is "expensive"."

This sounded like a pizza themed bible verse.





That is all.

4/4/2011 11:27:45 AM

What are your competitive differentiators?

In 27 words, can you give me 3 reasons to buy your pizza?

4/4/2011 1:16:51 PM

oh man, i had two slices of big star from lilly's for lunch

sooooooooo good

4/4/2011 1:20:39 PM

It's funny because Lilly's does pretty much everything he says won't work.

4/4/2011 2:08:35 PM

Quote :

"What are your competitive differentiators? In 27 words, can you give me 3 reasons to buy your pizza?"

I created my own unique dough and pizza sauce, includes 7 different cheeses cooked in a stationary heat stone oven with real (not processed) "homemade quality" toppings.

4/4/2011 6:43:29 PM

Sell something with a higher profit margin?

4/5/2011 1:34:06 PM

jesus another pizza thread by this dude?

4/5/2011 1:58:04 PM

smath, every thread is about my business because you guys like to talk about it I have no problems with talking about it, however, this thread is only to see if people knew what nickle and diming meant because they think that 3% doesn't matter when it really does. If you have 100 pennies and you give 80 pennies away to other people already, 3 more pennies gone only leaves you with 17 pennies.

4/5/2011 2:05:15 PM

Quote :

"jesus another pizza thread by this dude?"

this reminded me of a pic I came across once...


Can't believe I found it again!

4/5/2011 2:10:18 PM

Wow. that is... something

4/5/2011 2:12:07 PM

Quote :

"they think that 3% doesn't matter"

Oh, it matters. That's why I love my chase card. 3% back almost everywhere I go

4/5/2011 2:47:36 PM

Quote :

"I love my chase"

You like guys running around the bed after you?






in other words.

Stop taking shit out of context.

4/5/2011 3:06:52 PM

Sorry pal. I don't swing that way.

4/5/2011 4:23:20 PM

Not sure anyone believes you.

4/5/2011 6:16:13 PM