Coin is awesome - but my mind is on fees

istommydrunk.svbtle.com

2 pointstomasien4 comments

Yeah and the rent is too damn high too.

Compared to all the costs of marketing and doing business (like the landlord who'd rather charge $2X for rent and have 30% of the storefronts be idle), credit card fees are nothing. Storefronts, employees, shipping and advertising eat up much more of the cost of a purchase than does the credit card fees.

I appreciate the feedback! I think if you talk to business owners, you'll find that's not true. It's the second highest store-leve cost for most businesses, including Big Box.

I, for example, was running a monthly ramen-box business charging $20 per month per box. My costs were:

Ramen: $7 Shipping: $5 Credit Card fees: $1.20

That means without CC fees, my profit went from $8 a box to $6.80. That's a 15% reduction on my profit, and that's without labor costs factored in. With labor factored in, that's my whole profit, 100%. Sure I could have raised the price or whatever, but there's always options: my point is you can see how destructive that can be.

And without the credit card people don't have a way to pay so you don't have a business at all.

Did you read my post, or did you just read the title? We're making a new way to pay.

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