In the current economic climate, and in an age where everyone seems to offer interest free deals in a bid to entice purchasers, is it wrong to expect a decent discount for cash? We need to replace the fridge amongst other (fortunately) smaller things. [}][}] Most places seem totally disinterested in the fact we will pay cash up front, not costing them the time and expense of HP. Smiths City wouldn't give any discount for cash (they already had a 13% off with interest free terms). I'd have thought a 10% discount would be do-able? Anyone else had this problem?:rolleyes: Or care to comment?
I don't know what it's like for larger businesses, but I have a client who likes to offer a "cash price". What he fails to grasp is that unless I wish to declare that I have lost a large number of animals to strange occurrences with alien abduction, or carelessness with large holes, I still have to pay GST and declare the income, so his "cash price" would simply mean I'd be losing money, not passing on a saving of some sort.
I am led to believe that the shops that offer HP and other finance packages usually get a % of the arrangement anyhow, so its of no financial benefit to them to offer cash discounts.
However harvey Norman in aussie do it, and as I am about to buy a dishwasher from them here, I am going to give it a burst. Already been offered a 'buy today and get a discount'' so will see what cash/eftpos may give....
When we were self employed in Aussie, we would get all sorts of requests for ''cash'' settlement.
What people fail to grasp is the products, materials and employee wages all come with a tax component which needs to be covered.
Some small business people do go under as they fail to get the idea that invariably business taxes will always outweigh the benefits of keeping cash from work under the pillow, so to speak.
We use to offer a prompt payment discount on any final balances. that was an incentive to others so we knew payment would be forthcoming at the end of the job, however we also had that side of things relatively tied up tightly via contract agreements etc.
the benefit I guess of working in a highly regulated building industry in NSW. Bring it on here I say!
Most of the shops that we have had HP's with, the HP is actually external to the shop, like Q-Card or GE credit. The only shop I know of that does it's own HP is Forlongs.
Actually, I think it's illegal for them to offer 'interest free' and then do a discount for cash. I know it's against trading standards law in the UK, as part of my degree (Environmental Studies) was to visit a court for a few hours. The case we saw was a furniture store and they were being prosecuted for selling something cheaper for cash than the 'interest free' price.
I think the reason is that if you can get it cheaper for cash, then the interest free claim is false - ie if you pay more for buying in installments, then you are paying interest. Or something like that. All I know is he got done and was fined quite a bit.
Yes, drifter, I have had that too - looking at a vaccum, and the guy offered me a $250 machine for washing the carpet. I told him I'd rather have the $250 off the price of the vaccum!
oskatd;231323 wrote: Yes, drifter, I have had that too - looking at a vaccum, and the guy offered me a $250 machine for washing the carpet. I told him I'd rather have the $250 off the price of the vaccum!
But of course the $250 machine has a cost to the retailer of much less, which is all it costs him to include it in the deal.
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NZ & AU distributor of Eco Wood Treatment stains and Bambu Dru bamboo fabrics and clothing
Seaside is right on the mark. If a store offers an interest free deal & then offers a lower price for cash they can be taken to the cleaners by the Commerce Commission.
Some stores can give a discount for multiple items. So if you go in with your list of all that needs replaced, you may find a better response than just asking for a discount for cash off a fridge.
Or they may "throw in" an additional service such as free delivery and installation.
Think this may vary depending on areas but we have always found most appliance retailers always happy to give discount for cash- The best one we have struck is unfortunately Auckland specific, Magness Benrow- but the other here always seem ready to do some discount
4 acres with Garage/sleepout, a pond with ducks and frogs, lots of trees ready to burst into life in spring and lots of garden beds.
What happens is they will offer you 'interest free' for say the first 12 months of a 3 year hp contract. What actually happens is they give you a reapayment holiday ie; 12 months x zero $ followed by 24 months of normal repayments consisting of the original purchase price plus interest and charges.
Yes and don't forget the 'booking fees' and other fees that you have to pay in order to set up an interest free arrangement are fees that you would otherwise not have to pay if you're paying cash. So in fact if you take those fees and work the out the proportion in relation to your purchase price, you'd see that much of the time, it sort of works out to what you were paying if they called it 'interest'! (I've never ever used HP so I could be wrong but I have been tempted lately so have read the fine print in some of the flyers).
Have you tried another way of asking for a cash discount? Like is that the best price you can offer? and maybe tell them that another place has it for the same price so you might prefer to spend your money there unless they can do better. Then its haggling rather than false advertising
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