Cash Discount

[Dauphin]

Discounts are always better than surcharges. Duh.

Didn't Nestlé get in trouble for accounting irregulataries along this line? They charged a product at, say, $1 and gave a "discount" promotion to customers of $0.50. This was of course a sham, in that $0.50 was the real sales price by any reasonable measure. However, the reason they did this was to make the headline figure on the increase in like for like sales appear to be 100% (Sell 1 million @ $1 rather than @ $0.50, and you've doubled sales). The "discount" got lost in cost of sales.

[rah]

Well it is common practice to raise prices temporarily so you can mark it down and call it a SALE. Who doesn't want to buy it on SALE.

[Dauphin]

Ok, slightly misremembered:

http://www.ft.com/cms/s/0/ce6ba1bc-f59a-11df-99d6-00144feab49a.html#axzz1UTCAKyBH

Please respect FT.com's ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ft.com to buy additional rights or use this link to reference the article - http://www.ft.com/cms/s/0/ce6ba1bc-f59a-11df-99d6-00144feab49a.html#ixzz1UTCmp3cl

Some SFr16bn ($16.1bn) of turnover will vanish from Nestlé’s top line when the world’s biggest food group changes the way it reports revenues on January 1 next year.

But the move, which brings it into line with the rest of the industry on accounting for promotional discounts, would have the benefit of boosting Nestlé’s emerging market exposure from about 35 per cent to about 40 per cent, said Jamie Isenwater, analyst at Deutsche Bank.

Please respect FT.com's ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ft.com to buy additional rights or use this link to reference the article - http://www.ft.com/cms/s/0/ce6ba1bc-f59a-11df-99d6-00144feab49a.html#ixzz1UTDIiBCw

Nestlé has been an outlier among peers by reporting revenues without deducting promotional discounts. This means, for example, a two-for-one deal on Kit Kats is reported on the top line as two packs even though the second one generates no revenues.

[Lorizael]

Ok, slightly misremembered:

Good thing you've got your sig.

[C0ckney]

Do you routinely get them?

it depends on the place or what i am buying. if you go into a big chain store, the chances are pretty minimal in my experience. if it's a small trader, then there's always room for some negotiation. these people usually prefer to receive cash and will give you something for that too.

[Al B. Sure!]

What's this not wanting a paper trail thing about? What could possibly be the point of not wanting a paper trail unless you're buying something potentially illicit?

It's good to be able to pull up your credit card statement and see all your purchases.

[-Jrabbit]

For me, it's more about ID theft than it is "paper trail."
The fewer organizations and individuals who have access to my CC info, the better.

Consider the fact that no organization, no matter how high tech or important (governments, banks, Sony, and many more), seems immune to having that info hacked. Now consider the slack-jawed idiot behind the counter at your local retailer . Whether it's due to hackers or stupidity is irrelevant. Those CC digits have value.

[SlowwHand]

I'm big on privacy. I figure that it's none of their business. That's before the subject of ID theft is even brought up.

[giblets]

Credit card companies charge up to 3% per transaction. So a cash "discount" is reasonable.

So it's only a 3% discount for carrying cash around? That doesn't sound like something to get excited about.

[Al B. Sure!]

So it's only a 3% discount for carrying cash around? That doesn't sound like something to get excited about.

Are you serious? 3% adds up!

I buy everything with my credit card BECAUSE I earn 1% (or more depending on the store) on all purchases!

[DanS]

As far as I know, cash discounts are illegal in the US. That's why you very rarely see them. Why the credit card industry should have their business model enshrined in law is another matter altogether, of course.

[Al B. Sure!]

As far as I know, cash discounts are illegal in the US. That's why you very rarely see them. Why the credit card industry should have their business model enshrined in law is another matter altogether, of course.

What about for medical professionals? I swear they offer cash discounts.

[giblets]

Are you serious? 3% adds up!

I buy everything with my credit card BECAUSE I earn 1% (or more depending on the store) on all purchases!

Hopefully I'll never be someone who lives in the ghetto and needs to worry about every single penny.

[giblets]

As far as I know, cash discounts are illegal in the US. That's why you very rarely see them. Why the credit card industry should have their business model enshrined in law is another matter altogether, of course.

I thought charging extra for using a credit card was illegal, but offering a cash discount was legal.

[Al B. Sure!]

Hopefully I'll never be someone who lives in the ghetto and needs to worry about every single penny.

You mightaswell be living in the poor house with that attitude. Frugality will take you far.

I guess price-shopping is also beneath you