When do you price high? When do you price low? Pricing is a big discussion, with a lot of wiggle room for different approaches. Here are a few things to consider to do pricing right, and what to consider to find the best mobile POS system to help you.
Amazon, Walmart, and other big box retailers use enormous economies of scale to offer prices that small businesses can only gaze in awe at. Rather than bleeding your store to compete, take a different pricing approach. Often, a higher price goes with a perception of higher quality. If you aren’t selling staple items like toothpaste, be bold, and don’t undercut your products, and your profits, by aiming too low. That being said, depending on what you’re selling, you may actually be able to make the “low price leader” part of your brand and your business strategy. Just know that there are other options, and that you don’t have to sacrifice everything to do so.
Now, if it’s your own creation that you’re selling, you can adjust here and there to make your pricing hit the sweet spot. If you’re a donut maker, for example, and everybody in your neighborhood offers rock bottom cheap prices for the basic glazed donut, your store can opt to go high, adding quality, and raising your price to signal that you stand out from the pack.
Remember: there’s also the whole store to think of. If your store sells a range of products, you can carry a mix of high-end products, priced competitively, and also basic products, which can be priced a little higher than average, and people will buy, for convenience, and for the overall perception of quality your store has.
Once the product hits the floor, you still have time to experiment and learn. Especially if certain items aren’t moving fast enough, it’s time to consider price breaks, and various promotions to get them moving. There are a lot of approaches that can be leveraged here, especially if you are creating a limited time promotion. Some will work better than others, depending on what it is you’re selling. There is also a certain element of creativity that is needed to make promotions exciting and effective.
One thing to never forget with your promotions and pricing in general, is to track everything! If, for example, you have a summer price for a dress and a winter price for the same dress, you need to be able to see sales numbers so you can keep learning as you go forward, and improve next year. In order to be able to do this in a way that doesn’t make you tear out your hair, you need an integrated payment system, such as can be had with the best mobile POS systems. This way, you’ll be able to integrate your other systems: your inventory system, your accounting software, and more. And of course, having sales reports that allow you to do the learning is absolutely essential. Learn about the Poynt Smart Terminal that Moolah Customers get free for signing up with us!
Pricing, in a way, is where all the success for your small business starts. Be creative, be precise, and be sure to keep track of everything with the proper technology.
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A credit card surcharge is an additional fee added to a transaction when a patient chooses to pay with a credit card. The surcharge is intended to help offset the cost of credit card processing and applies only to eligible credit card transactions.
No. Debit card transactions may not be surcharged under any circumstances, even if the debit card is processed as a credit transaction or entered manually.
Yes. Credit card surcharges may not exceed the merchant’s actual cost of accepting credit cards and are capped at a maximum of 3% of the total transaction amount, in accordance with card-network rules and applicable law.
Yes. Card networks require clear and transparent disclosure of any credit card surcharge. Practices must notify patients through appropriate signage at the practice entrance, point of sale, and anywhere payments are accepted. If payments are accepted online, the surcharge must also be clearly disclosed on the practice’s website.
Yes. Some U.S. states and territories prohibit or restrict credit card surcharging. Practices are responsible for understanding and complying with their state’s specific requirements before implementing a surcharge.
No. While Moolah provides tools and general guidance to support credit card surcharging, compliance with all applicable laws and card-network rules is the responsibility of the merchant. Moolah does not provide legal advice and assumes no liability for a merchant’s compliance.
Most major credit card networks permit surcharging when done in accordance with their rules, but additional requirements or restrictions may apply. Practices should ensure they have completed all required network notifications and disclosures prior to enabling surcharging.
Failure to comply with surcharging rules may result in card-network fines, required refunds, or other enforcement actions. Practices should ensure they fully understand all applicable requirements before applying a surcharge.
Flex does not currently offer built-in support for credit card surcharging. If a practice chooses to enroll in a surcharge plan, payments would need to be processed through Moolah’s payment platform, which is designed to support surcharging and integrates directly with Open Dental.
If you are considering introducing a credit card surcharge for your patients, it is important to understand that there are specific rules and regulations that must be followed when enrolling in and operating under a surcharge plan.
This article provides a general overview of common surcharging requirements. This content is provided for informational purposes only and does not constitute legal advice. It is the responsibility of each merchant to review, understand, and comply with all applicable laws, card-network rules, and regulatory requirements, including notification timeframes, signage requirements, surcharge percentage limits, and jurisdictions where surcharging is prohibited.
If you are unsure about the laws or regulations applicable to your practice, you should consult with qualified legal counsel. Moolah assumes no liability for a merchant’s compliance or non-compliance with credit card surcharging rules or regulations.
Transparent Communication
Card networks, including Visa, Mastercard, Discover, and American Express, require merchants to clearly and transparently disclose when a credit card surcharge is applied.
Practices must clearly notify patients of a credit card surcharge through appropriate signage placed at the practice entrance, at the point of sale or terminal, and anywhere payments are accepted. If payments are accepted online, surcharge disclosures must also be clearly visible on the practice’s website. All disclosures must inform patients that the surcharge applies only to credit card transactions.
Surcharge Limits
Credit card surcharges must comply with both card-network rules and applicable law. The surcharge amount may not exceed the merchant’s actual cost of accepting credit cards and may not exceed 3% of the total transaction amount.
Card-network rules cap credit card surcharges at 3%, meaning that if a merchant’s processing costs exceed this amount, the excess portion cannot be passed on to the patient.
Network and State Restrictions
The major credit card networks, such as Visa and Mastercard, impose specific requirements related to surcharge limits, advance notification, and disclosure.
In addition, several U.S. states and territories regulate or prohibit credit card surcharging. At the time of writing, credit card surcharging is prohibited in Connecticut, Maine, Massachusetts, and Puerto Rico. Other states, including Colorado, Minnesota, Mississippi, New Jersey, and New York, impose restrictions on surcharge amounts or require specific disclosures.
If your practice operates in a state that restricts or prohibits credit card surcharging, you must fully understand and comply with those requirements before implementing a surcharge.
Debit card transactions may never be surcharged, even if the debit card is processed as a credit transaction.
Applicability
Credit card surcharges may be applied only to credit card transactions. Other payment types, including debit cards and alternative payment methods, are not eligible for surcharging.
Regulatory Compliance
Merchants are responsible for maintaining ongoing compliance with all applicable card-network and legal requirements. This includes meeting advance notification obligations, using compliant signage and disclosures, adhering to surcharge percentage limits, and respecting jurisdiction-specific restrictions.
By following these guidelines, dental practices can implement credit card surcharging in a way that aligns with card-network rules and promotes transparency with patients. Clear and upfront communication helps maintain patient trust and supports a positive payment experience.