At 10:43 AM 2/13/2001 -0500, PECB wrote: >George Matyjewicz wrote: > > . . . Let's assume that we have every merchant in the world > > accepting gold. Why would a consumer want to buy gold at 9-15% > > to purchase from merchants when they could use their credit card, > > and, if paid timely, incur no fees? If not paid timely they get a loan. > > > >Plus, another thing to consider -- you can currently purchase e-gold at >premiums ranging from 2.75% to 15% depending upon payment method and >amount purchased. On average, the cost (all costs, percentage take, >transaction fee, gateway fees, bank fees, etc) to a merchant accepting >CC's as payment averages about 6% (in some industries, and for some >specific businesses, its as low as 2% and for some it's as high as 20% >-- I know, I did my shopping), and he must increase all his prices by at >least this amount no matter if the customer pays cash or uses credit >card; because it is illegal in most countries for the merchant to do >otherwise and merchant CC contracts have this stipulation as well (this >was not always the case -- in the fledling years of the CC-industry >merchants used to have different prices for different payment methods. >This was hurting the growth of the credit card industry, so they lobbied >congress in the U.S. and put a stop to it, plus added clauses to their >contracts to forbid and did other nasties in other countries to make >sure similar policies were enforced). > >So in reality, if merchant accepts e-gold and does not take CC's as >payment, therefore being able to offer lower prices, and a customer uses >e-gold (or the others that are springing up) to purchase from this >merchant the customer's total cost (including the cost of exchanging >fiat currency for e-gold) of the goods or service is really no more than >it would have been otherwise, and may often be less. Dreamer ;-). In theory that is true. In reality it's a way for them to pocket more profit. But yes, if sold correctly, it is a way for the merchant to help offset the costs to a consumer. >Another benefit of the gold economy is that there's far less hassle and >paperwork than with credit cards -- another cost savings. That's an intangible benefit, and can't be figured into the equation. You still need people to shuffle other papers, so you can't reduce costs. I don't argue the benefits to the merchant. They are wonderful. The merchant is not the problem. It's the consumer who must pay higher fees to join the club. > > . . . So, the gold economy is wonderful for the merchant, but not so > > good for the consumer. . . . > >So actually the gold-economy is great for both the merchant and the >consumer. How do you figure? Let use some hypotheticals. You're a merchant selling products where the margins are already very low. You take credit cards and pay 2.5% Now you are going to take gold, where you may pay 1.75%. I want to buy merchandise from you. Let's say I buy gold for the lowest you state above 2.75%. Are you going to give me an additional 2.75% discount when you are only saving 1/2%? Yes, I understand the non-reversible, no chargeback, yada, yada,yada. But, I also know the mentality of retailers. It's a tough sell. I should explain that I have been involved with retailing most of my career (which spans too many decades ;-). I have consulted for major top 10 retailers as well as mom & pop stores. And I have been writing a column in one of the top retail magazines for six years. While I understand that I don't know everything, I do know that retailers are a tough bunch to convince of change. Look how long it took EDI to become a reality in industries other than food? And look at all those B2B hubs out there who died because they thought they were going to make the retailers job easier. Perhaps we are looking in the wrong areas. Maybe we need the gold economy to be brought into the education arena, and teach folks early. But, this kind of discussion is great, because it helps us understand the issues, and may help us all determine what it will take to implement change. George. ______________________________________ George Matyjewicz, President Standard Reserve Corp. -- Atlanta, GA World Wide Currency for the World Wide Web http://www.standardreserve.com mailto:[EMAIL PROTECTED] --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
