Buying Advice Purchasing a tractor on a credit card?

[CADplans]

My sister got an unlimited credit card in 1973, the next day, she went to Richmond VA to buy the JD 4630.
The salesman asked how she wanted to pay, they were planning on writing a check,, as a fluke, she gave them the card,,

When she got home, the phone was ringing,, the bank wanted to know if she had JUST bought a tractor!! :laughing:

I bought the JD 4105 a couple years ago,, at the JD dealer,,
I asked if there was any difference in price, card or check,, the salesman said the price would be the same,,
I put the purchase on my credit card,,,

 

[Will_C]

I have tried to purchase cars and tractors with my card-always told nu.

Will

 

[RickB]

An outright refusal is a silly response for a dealer to make. Take the card, add the card processing fee. It can’t be much simpler than that. But at the same time accepting a CC is not an excuse to pile on a couple percent over the actual fee.

 

[Streetcar]

I assume that credit card was a special corporate account. I think the fee structure is different on those. I'm sure consumer cards don't go that high on limits.

American Express, he bought $50000 worth a day and immediately paid it off. Repeated for two weeks

 

[Industrial Toys]

To work with a bank, have a line of credit or operating loan, seems like a better solution than using a credit card to run a business. Seems strange to me. The CC people are out for their pound of flesh, one way or another.

 

[Jstpssng]

Think of this. 5% on a $2.00 cup of coffee is $0.10. The gross margin on the cup of coffee is probably 70%. The issue is that your tractor dealer only making a 8-10% gross profit. Can稚 give away 5% if your only making 8% (leaving the dealer just 3%)

Are you a store owner, (not employee), so that you are qualified to make that statement? There are many more expenses than 5 tablespoons of coffee.

 

[4570Man]

Think of this. 5% on a $2.00 cup of coffee is $0.10. The gross margin on the cup of coffee is probably 70%. The issue is that your tractor dealer only making a 8-10% gross profit. Can’t give away 5% if your only making 8% (leaving the dealer just 3%)

There’s different setups. Some usually lower volume places pay a minimum fee per swipe. I’d never buy a tractor from a dealer that wouldn’t sell it cheaper than the potential gains for using a CC. As mentioned they’re probably going to add the CC fee on top anyway. And rightly so.

 

[mapper]

That's how I purchased my Massey, no additional charges and the dealer was happy to make the sale, no static about the card whatsoever!

 

[RickB]

Are you a store owner, (not employee), so that you are qualified to make that statement? There are many more expenses than 5 tablespoons of coffee.

Please post your qualifications next time you give an opinion. You certainly are not qualified to make coffee if you use 5 tablespoons to make one cup.

 

[ddbackhoe]

(.. only use cash for hookers and heroin. )

I have a VISA that gives me 5% on gas,groceries, and drugs, up to a $400 max rebate for the year.
So.....I charge up to $8000 on it for the year, and then put the card away.
Another VISA card gives me 2% back on everything- no limit.
I also use that for gas, groceries, and drugs when the 5% card has reached the $8000 5% limit.

After you guys compare notes, I want an invite

 

[nards444]

Are you a store owner, (not employee), so that you are qualified to make that statement? There are many more expenses than 5 tablespoons of coffee.

Gross margin is different than profit margin. I would take a gander that cup of coffee on the gross side probably isnt to far off

 

[stuckmotor]

Same here...we always inquire about putting big ticket items on cc's for the cash back/points, but most places (dealers) don't allow it, due to the fees they incur. Can't blame them, but still I will always try!

That tears it. Some small businesses won't take a credit card for less than a $3.00 purchase and now I learn large businesses won't take them for large purchases.

 

[Jstpssng]

Please post your qualifications next time you give an opinion. You certainly are not qualified to make coffee if you use 5 tablespoons to make one cup.

When was the last time that a store made just a cup of coffee? They always make a pot, and often dump some/much of it out. How do you know how big my travel mug is? Today I was talking with a store owner about this very thing he said that a stack of (25) 12 oz cups costs him $14.00. That's 46 cents more than the above mentioned dime, even before pouring the coffee into it.
Then you have added expenses;
There has to be somebody there to make it; and to wait on customers. Besides their wages add on 50% for worker's comp, SS and other costs associated with having employees. Floor space costs money, whether it's rented or owned; insurance, taxes, losses due to damage or theft...

 

[Jstpssng]

That tears it. Some small businesses won't take a credit card for less than a $3.00 purchase and now I learn large businesses won't take them for large purchases.

They will take them, just tack on a little additional expense.

 

[Diggin It]

One thing I haven't seen mentioned is the dispute process on CCs. Dealer refusals to take CCs may not be just about fees. Things can get messy for them if a buyer files a CC dispute over some disagreement.

 

[nards444]

When was the last time that a store made just a cup of coffee? They always make a pot, and often dump some/much of it out. How do you know how big my travel mug is? Today I was talking with a store owner about this very thing he said that a stack of (25) 12 oz cups costs him $14.00. That's 46 cents more than the above mentioned dime, even before pouring the coffee into it.
Then you have added expenses;
There has to be somebody there to make it; and to wait on customers. Besides their wages add on 50% for worker's comp, SS and other costs associated with having employees. Floor space costs money, whether it's rented or owned; insurance, taxes, losses due to damage or theft...

All depends on the business. Guy I knew owned a gas station, went to walmart and then resold items and said he didnt make any money. Part of the problem was he wasnt buying in bulk the other problem is he was a terrible business man. Point being is I can buy 48 12oz cups on amazon for 14 bucks, surely somebody buying in bulk can do better. Second soda cost mcdonalds 20 cents to make to include cups, and they sell them for a buck. General rule is 100% mark up, if you arent doing that you aint making money, So that dollar coffee should only cost them 50 cents at most. Think I read an article that starbucks mark up on coffee is like 3-400%.



I run hiring firing and payroll. Industry standard for benefits is much closer to a 30% figure than 50%, but it all ads up. Also in this case at the gas statation there is probably 1-2 employees doing it all, so to an extent its a fixed cost per hour one employee is say 12 bucks an hour plus benes is about 15-16. bcks and that wage is spread across everything they sell or make that day. Alot of people are truly bad business owners that's a trut, business' are hard they really are sometimes thats why I have no interest in them as they are hard to do and it doesnt mean you are rich.

 

[RickB]

When was the last time that a store made just a cup of coffee? They always make a pot, and often dump some/much of it out. How do you know how big my travel mug is? Today I was talking with a store owner about this very thing he said that a stack of (25) 12 oz cups costs him $14.00. That's 46 cents more than the above mentioned dime, even before pouring the coffee into it.
Then you have added expenses;
There has to be somebody there to make it; and to wait on customers. Besides their wages add on 50% for worker's comp, SS and other costs associated with having employees. Floor space costs money, whether it's rented or owned; insurance, taxes, losses due to damage or theft...

I can get 50 12 ounce coffee cups with lids delivered to my door for $17 via Amazon Prime. Which means I can probably do better at Sams, Costco or Restaurant Depot. So your local store owner is his own worst enemy in your poor example. And it was you that specifically said it takes 5 tablespoons of coffee to make one cup. But you do backpedal very adeptly.

Back to the original question, margins on tractors, etc are far thinner than on parts, service or a large percentage of items found in general retail. Hence the reluctance to take payment via CC without backcharging the end user.

 

[atsah]

For the record I do use 5 tablespoons of coffee to make a 16oz cup of coffee every morning.. If I want weak coffee I drink tea...

 

[Industrial Toys]

NOTHING worse, than weak coffee. I'd rather drink bath water.

 

[dalola]

NOTHING worse, than weak coffee. I'd rather drink bath water.

I would put bad coffee one step ahead of weak coffee, assuming said weak coffee is of high quality. But than again, I'm a coffee snob, so... :cool2: