Differential pricing is an umbrella term used to describe a number of different pricing models. Let’s take a look at the 2 most common, which are legal in all 50 states.

 

First up, we have Dual Pricing - it’s as simple as it sounds. You have a cash and a card price for every item or service you offer. The difference in cost is small - usually just 4%. Let’s use an example of a burrito you sell for $10. You increase the price to $10.40 for card and retain the $10 price for cash. The additional 4% - in this scenario $0.40 - is collected by the processor to pay any credit card fees and the $10 is deposited into your account, as if you accepted cash. 

Dual Pricing is as simple as that! 

 

Now, you might be thinking to yourself that you have a large menu or a number of items and displaying 2 prices for everything would be a hassle.
 

That’s where Cash Discounting comes in. In the same example where we’re selling a burrito for $10, with Cash Discounting, you would increase the price on the menu to $10.40. Then you would simply have disclosures at the point of entry and the point of sale saying something to the effect of “Pay with cash and save! We offer a 4% Cash Discount on all cash purchases.”

Same principal, slightly different implementation. 

 

The only objection to adopting differential pricing into your own business is that you don’t want to upset your customers. Let’s address this now.

From the hundreds of merchants we have assisted implementing differential pricing, we know that over 98% of customers won’t ask about it, and to the few that do you state:

“Our cost of accepting credit cards has more than doubled over the last 5 years. We didn’t want to raise prices across the board, so we have slightly increased our price for card paying customers, which only covers our cost of accepting your card, and retained our original pricing for cash paying customers. Don’t you feel that’s more fair?”

In the event of any further objection from the customer, you can waive the card price for this transaction and remind them to bring cash the next time they come. 

 

Still skeptical? Consider what Andrea Kukulka, owner of PuppyCut Grooming, has to say: “SeerosPay's customer service is outstanding. In our 5 years of being open, we've had 2 other card reading services, SeerosPay is hands down the best one out there!”

 

Join Andrea and hundreds of other merchants who have already experienced the power of differential pricing by scheduling a call with us here.