Up to what discount are you giving up for your customers?

tjtonmoy

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

I also read that discount is an effective way to make people want to pay with Bitcoin.

Yeah, I made a post like this a few months ago. I am not only accepting just Bitcoin, but also all kind of cryptocurrency which are reputable and could be considered as a payment method. I have 3–4 people paying me in crypto but haven't seen any other people willing to pay in that way. So I gave a 5% discount on every transaction which are going to be made using Bitcoin. So I think 5% is not that bad. And it's just to make people curious about this payment method & Bitcoin.
But currently my country is facing some legal issue in using of Crypto. So I had to stop that. Hopefully when we get a green signal from the government, I will start again.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you? Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

I also noticed that there are many who advertise that they accept bitcoin payments in their small businesses. Frankly, I do not know how they do this, especially since they are citizens of countries that do not support encrypted currencies in the first place, in addition to the technical problems about the method of calculating the price of the product and the method of sending.
If I imagine myself in the shoes of one of them, I imagine that I will be given discounts including transmission fees through the use of the Lightning Network. I can also give discounts on products where the profit margin is large.
It should always be taken into account that the merchant must pay the fees for converting bitcoin to cash later.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you? Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

It depends on the markup. There is a strategic move where you can give a 50% discount on your time and it is all tied to how much your markup is.

For example, if I have a product where the capital is around $10 and I am selling it at $50 a piece, I believe I can go to as high as a 30% or even 50% discount to anyone who is paying in form of BTC..

KennyR

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We're at the beginning days of more and more stores and businesses accepting bitcoin. By the time, to grab more attention providing discounts will be better. I'm not into any sort of business to accept bitcoin, my suggestion as a common man for the businesses accepting bitcoin is to bear the transaction fee. Just a suggestion, as more payment gateways provide no fee transactions. Maybe for the transaction cost users might avoid using bitcoin.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you? Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

The discount given to customers paying in bitcoin will differ on a case-by-case basis. Each businessman will have an individual approach to solving this issue. For some it will be 1%, for others 2% or more. Business likes the bill. Any actions must be thought out, and all costs calculated.

Not without a discount. This is what allows people to be encouraged to pay at btc. You also need to consider the commissions they pay when buying bitcoin. These costs also fall on the shoulders of your customers. Not everyone has been holding btc since 2010. The main argument when buying for bitcoin should be the benefit, the benefit for the buyer. Otherwise, they will not bother buying btc in exchangers, and then buying your goods or services for them. If the use is unprofitable for them, then no bitcoin-enthusiasts will be able to force them to buy for btc.

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Huh 1 or 2%? If you're selling expensive stuff or high end things, okay, that's a reasonable discount.

But honestly if you're selling things to a lot of people and want to offer a BTC discount, and 1 or 2% already affects your business then you need to rethink your profit margin my friend

Firstly, your customer has to bear Bitcoin buying (and spending fees). So your 1% discount might not even be enough for the hassle for them.

We who earn BTC might forget it's not really convenient for most people to get BTC Wink

5% is the minimum to me to make things attractive.

Quote from: xSkylarx on February 03, 2023, 01:38:08 AM

It depends on what kind of items or food your selling and how much is it because giving like 1% is huge and if you only add some cents on it to profit the youll be lossing. What i plan is you have like lets say $5 discount if you pay bitcoin if your purchase reach at $50 .

So 1% is huge, but you're suggesting 10%?

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It depends on what kind of items or food your selling and how much is it because giving like 1% is huge and if you only add some cents on it to profit the youll be lossing. What i plan is you have like lets say $5 discount if you pay bitcoin if your purchase reach at $50 . Having fixed amount can still gain you profit that getting the percentage on it. But again this depends on the business owners on what kind of promotion they want

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There are some goods that gives seller only 1 percent as earnings so how are you going to give a deal when you make less on the items you sell?

I believe you are the only person that can get this right, if an item costs 10$ for standard and you are to resell for 12$ in the open market I believe when it comes to discount it should be at the range of 1$ or 0.50$ deal, that discount is coming from your profit. If you don't like it you can drop down to 0.25$, this will make sense to customers that are willing to buy up to 5 items at once. Like I've said, the ball is in your court.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

Snip

Customers are attracted by big cashback, but the percentage of cashback to be given to customers should be based on the cost of your goods and the profit expected. If you are selling items or goods that allow you to give only 1%, 2%, or 3% off, that is exactly what you must do because you will have to consider your costs first before determining the total discount to give. Since I started accepting Bitcoin as a means of payment, I got some skepticism about this discount stuff, but I have come to realize that customers get easily attracted when they see a big discount like 10% or 20%. For me, I am just offering a 5% discount, but when I first started, I even did less, but due to Sir Lucius's advice, I tried 5% and am getting more customers in because of it.

OP, if you are into business, kindly be aware that you cannot give discounts based on the percentage rate you see others give; always calculate your expected profit, and from there you can decide the percentage value that is good in order not to incur losses when you give excessive discounts.

Smartvirus

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

Your so sure because of some post you see on the forum? Have you ever used one or have you seen them come back to post repeated evidence of some periodic payment as to how they are doing and the response of there customers to this new means of payment... I guess not. I might just have to remind you that some although I can't tell which are just phony. Wth that being said, I'll get right in to your subject.

Is there a reason to make your customers want to pay in bitcoin? I think not. What the point in giving discount?
Providing the means is good enough for the customers to have more than one means or only fiat means of payment hence, they've they've the leverage of choice and you've got the opportunity not to lose your customers to other competitors.

Discount on a means of payment isn't a thing but when it comesvto products or services, that's where it could matter.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you? Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

Depends.

...on what product I am selling. (or what service I am offering) If the profit margins are slim, I might even ask a premium for accepting bitcoin because of its volatility. If the margins are great like 30-100%+, then 1-5% discount would be reasonable.

Making discounts is not always a possibility. Working voluntarily for crypto adoption is a good thing but if you can't attract enough customers with the discount you are providing, you are only going to hurt your business.

Flexystar

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you? Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

Isnt the discount would be similiar to what would you give when its in the fiat value? For example, if a TV is having discount of 5% on $100, then I would simply give the same discount over BTC price or converted prices. It's just two different currencies and nothing else. There is nothing special about it I guess?

We should consider both of them same and apply the same discount as merchant. Just to attract customers to pay in bitcoin I would never give extra discount in BTC since its very volatile asset and I may incur with more loses than profits for accepting the bitcoins. Besides the fact that I will be grabbing more BTC on daily basis.

So whatever is discount on the fiat value, should be the discounted offer while accepting the payments in the BTC currency. Keep it simple.

Wiwo

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you? Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that a discount is an effective way to make people want to pay with Bitcoin.

The only reason why I should give a discount for a goods is when they are on promos, and not just for paying with a specific payment method like bitcoin because accepting bitcoin alone is a discount for the customers knowing fully well how secure and fast the trasaction will be and ease of payment.
*highest I can do for a client is to take off the trasaction fees, and that is if I have my bitcoin payment platform with cheaper fees.
*anything other than 0.5% will be at loss for you, and there is no guarantee that your Bitcoin will rise in price the moment you receive payment so the risk is in both ways.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you? Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

Though i am not the one managing our(my) business, my wife does, and its once in a while that she calls me up to inform me that a customer would like to make payment in bitcoin, i will just send an address to her give to the customer and the worth of the goods in bitcoin including some fees for conversion to our local currency and withdrawal..
I do not, and have never offered any customer a discount because they are paying in bitcoin, infact, most times, like I mentioned above, I charge them more so as to be able to pay the exchange and withdrawal fees and still have the capital I bought the good with plus some profit, this is because I will need to buy those goods back and where I buy it, they do not take bitcoin payment yet.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you? Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

Depends on business type and profit margins. What's the net value of product and what's the pure profit percentage from single sold product? When I buy things online and websites offer crypto payments, usually I see discount between 5-15 percentage. But that's online, haven't seen any discount in real life, nor have I ever used, so don't know actually.
Now look at this old chart from 2013 year and decide how much discount you are gonna offer to customers and how much profit you'll potentially make. ^[Source]

The person above was offering 5% discount on bitcoin payments, I guess he nailed it.
One may ask, why not to buy bitcoin directly with USD but this way you support the network and benefit from it at the same time.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you?

If the goal is Bitcoin awareness among local people then I am ok for 100% from my profit. Generally I will be ok for 10% discount of my profit without any hesitation. For very first purchase, I will be happy to discount 50% but this will be only available for limited time

Quote

Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

We are living in country where there is no single shop or any place where Bitcoin accepted. Many Binance meeting and seminar has been held to spread awareness about Bitcoin and crypto. Very soon some BTC lover will start to accept BTC. We are working but cannot do it freely. If this possible , maybe I will be first one to pay BTC for good and service.

bittraffic

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Give 10% I think will already encourage people into buying. There are stores nearby selling clothes and they are encouraging also to pay out digital cash. Digital cash isn't well adopted by the people locally yet so they are also giving about 10%. I came back the next day after installing a digital wallet just to try it.

It's one way you can give back to the community while you also benefit from BTC.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you? Right now I am sure that many people are accepting bitcoin in their business as there are many posts about this, I also read that discount is an effective way to make people want to pay with Bitcoin.

It depends on your mark up profit to your item. A single digit discount nowadays is not appetizing anymore since most of the online shop offers minimum of 10% discount with their discount.

I have business and our profit percentage usually around 40% to 50% per item. I usually gave up to 30% bonus to all our customers that paying Bitcoin during their first purchase reduced to 20% later on once they are a regular customer of mine. Our normal discount for wholesale was 10% only but I give extra discount for crypto payment since I knew that only few people used it to help promote Bitcoin in our community.

Overall, The discount percentage varies base on your profit margin item. It’s nonsense to give a discount which is not appetizing to customers and also not profitable to you. It should be balance.

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I can't speak from the perspective of someone who sells something, but as a client I can notice that these discounts are mostly between 5-10%. I think that anything less than 5% is quite ineffective in terms of attracting a customer to pay with Bitcoin, especially at a time when the price of BTC is rising and it is more worthwhile to pay with fiat. On the other hand, at least a 10% discount makes sense, especially if it is a service/product that is more expensive and the customer can save a significant amount to spend on something else.

In any case, discounts are something that can at least attract customers to try paying with Bitcoin, so all sellers should think about it in case they have Bitcoin as a means of payment in their online/physical store.

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Quote from: KiaKia on February 02, 2023, 10:49:38 AM

If you are into a local business and accepting bitcoin for payment how much discount are you giving up for your buyers? 1%? 2%? How much discount do you think is ok for your business and won't affect you?

When you accept Bitcoin for your business as a payment method or as salary payment method, you must be aware of its volatility and risk of losing initial receiving value to a value when you cash it out. If you accept it, you are afford to skip short term loss and focus more on longer term holding.

Somewhat you are building a treasury for your bussiness with Bitcoin.

About discount, not mention how much, 1% or 2% of discount, I want to say it does not make sense. Because nowadays Bitcoin is popular enough and you don't have to bear loss for your business to integrate Bitcoin to it. You can do it with no discount.

However, of course if your business has good budget for promotion and solid, efficient plan to get good return from marketing with discount for customers, you can do it too.

If you are not sure what to do and don't have plans, don't burn your business fund is my advice.

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