cash discount? whats the deal?

[admin_exported]

In the current climate with regards to consumer spending, does anyone have any info/knowledge of whether branches/independant retailers are offering discounts for cash purchases?

i know its not furniture we are buying but still a big outlay none the less.

any info would be great.

 

[bigblue235]

Well, I don't know about specific shops offering discount, but I do know a bit about the discount process

I've had many people over the years expecting 10%+ off for cash, which is a non-starter, as the most we ever pay in credit card company commission is 5%. But as very few people ever pay by Amex (who are the 5% brigade) we usually give about 3% or so off, rounded up to the nearest £5. Often we just give a token amount off.

If you're buying a few things, or a particularly expensive item, then you can reasonably expect some decent discount, but not just because you're paying by cash, it's a combination of a decent sale total and that cash payment. If you're buying some accessories or consumables, then it can sometimes be worth pushing for a big discount on those, as that's often where the money is made. Also, sometimes small retailers will give you a hefty discount for cash, but you may also get a hand written receipt

Most people don't realise, but buying things on credit is often the way to get discount. A lot of finance companies offer huge commission rates to retailers, as they make a killing if people don't pay the loan off in the given interest-free period. So you just need to make sure you do! We used to do 6 months interest free, and if you didn't clear the balance in 6 months you then went onto 12 months at 30% APR, on the whole balance. Obviously a great deal for the finance company! So don't think you can't get interest free and a discount, as sometimes that's the best way to do it!

The big thing that affects your discount is the particular item you're buying. It's harder to get discount on some sale or clearance goods, as they're already at a low margin. Also, if the thing you're trying to buy is in much demand, then the retailer has no motivation to sell one cheap.

Sorry, rambling on a bit, as usual...

 

[John Duncan]

Discounts are not about method of payment any more (unless you pay your builder in cash to avoid VAT), they're about margins. So you should try negotiating no matter your method of payment - depends on what the amrgins are on any given product, and how desperate the retailer is.

 

[Anonymous]

bigblue235:
Most people don't realise, but buying things on credit is often the way to get discount. A lot of finance companies offer huge commission rates to retailers, as they make a killing if people don't pay the loan off in the given interest-free period. So you just need to make sure you do! We used to do 6 months interest free, and if you didn't clear the balance in 6 months you then went onto 12 months at 30% APR, on the whole balance. Obviously a great deal for the finance company! So don't think you can't get interest free and a discount, as sometimes that's the best way to do it!

This is certainly the way it works in much of the motor trade too...

 

[Anonymous]

It's not worth the Hassel of going around all the shops trying to barter with shop staff/managers for cash discounts. Many of the larger stores prices are high so any discount would make a purchase more or less the same as buying from cheaper sources on the net. Most of them like Comet and Curry's will only throw in a cable or cheap accessory but only if you take out the very expensive in store extra warranty.

The smaller stores will always give you discount but again there prices are far too high anyway.

The best options are to find the cheapest on the net then look for discount codes to try and lower the price a little further. Typing discount codes in Google is the best option but it can take a while to find what you are looking for and they don't always work.

A site to avoid at all costs is www.looksmartpro.com This site seems to be good to be true, will only take orders of $500 or more and will only take western union as payment which means there is no way of getting your money back if you don't get you purchase.