Dual Pricing is not new. Many gas stations around the nation have been offering both cash and credit prices for over a decade. The benefit to the business owner is no secret. When businesses offer dual pricing, they retain 100% of the cash price for every product they sell regardless of how the customer pays. It is great for the business owner. Unfortunately, until now, true Dual Pricing was not available to most retailers and restaurants due to both limitations of POS software to support dual pricing and the unpredictability of exact payment processing cost on each transaction. Therefore, business owners with many different item or SKU’s could not easily know exactly how to price merchandise under a dual pricing model. More importantly, business owners were unable to offer dual pricing while providing a beautifully transparent and enjoyable customer experience to their valued patrons. All that has changed!
There are 3 things needed for a business to run a True, Honest and Transparent Dual Pricing Program.
- A business owner willing to take the time and care to present a beautiful customer experience to all of their valued customers. Your customer deserves to know how much each product will cost when they decide to purchase it.
- A merchant services provider, like Card&Beyond, who offers a flat rate percentage that aligns with the difference between the regular and cash prices without any additional charges. You need to know your cost on each item in order to price correctly.
- A POS system capable of supporting a dual pricing model with both a regular price and a cash price for each product or SKU in a business while providing the accurate reporting needed to support the business operations.
The Business Owner’s Experience
The benefit of the Dual Pricing program to the business owner is you no longer have to concern yourself with the rising costs of accepting payments. You profit the same as if all transactions were cash. We simply retain the difference between the regular price and cash price to pay all processing and program costs for you.
All those fees you are used to with your current payments provider like PCI compliance fees, batch header, transaction and statement fees etc. are all rolled into your flat rate and there are no surprises.
Your customers will check out as normal and your POS will keep a running total of both the regular price and the cash price. When your customer chooses their payment method, the POS will print-off the itemized receipt with the correct corresponding prices.
Your Customer’s Experience
Your customers will love that you are offering and fully disclosing both price options to them throughout their experience. They will love that you are offering them an option to pay with cash and save off of the regular price. If they pay in cash, they will get an itemized receipt with the cash price and if they do not pay in cash they will get an itemized receipt with the regular price.
Many consumers and businesses today want to resist the move to a ‘cashless society’ for a number of reasons. However, as much as they resist the move theoretically, when they pay the same prices for both cash and electronic payments, they still flip past their cash in order to get their rewards on their purchases and you the business owner end up paying for it. So these conscientious consumers are thrilled to see you are offering them a savings of 4 or 5 cents on the dollar to pay in cash.