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Would you like Target Sports USA to have an interest-free installment payment option when purchasing ammo?
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For ammo?Would you like Target Sports USA to have an interest-free installment payment option when purchasing ammo?
I thought paypal assumed all the risk, the vendor gets the payment immediately minus PP service fees. Then the "loan" responsibility is on the borrower and PP.Why the heck would a business want to do that? Serious question. You assume 100% of the risk resulting from nonPayment and none of the reward of borrowers paying interest. The business also loses money due to the declining value of money. You loan it out, over time, while the currency inflates. So you make a loan in today's dollars to be repaid in tomorrow's less valuable dollars, which would consequently result in an operational loss.
All these expenses would be passed onto paying customers in the form of higher prices. I do not want to pay higher prices to finance deadbeats. If people need to finance their ammo purchases over time, then they should probably evaluate their life's priorities. As in buying ammo shouldn't be one of them. Buying food should be. Regardless, I don't want to pay for it.
Would you like Target Sports USA to have an interest-free installment payment option when purchasing ammo?
I thought paypal assumed all the risk, the vendor gets the payment immediately minus PP service fees. Then the "loan" responsibility is on the borrower and PP.
No you're right, I assumed it was going to be a paypal like option. They could still roll up the fees to the person doing the installment.Maybe I misunderstood the intent. I read it as TargetSports would be offering the financing option. I didn't see PayPal mentioned anywhere. In such a case PayPal would take a slice of the purchase price - maybe 3%. Is that on top of the CC processing fees? PayPal has got to make their money on this transaction too. So that's still going to be passed on to the customers in the form of higher prices. I don't like that.
No you're right, I assumed it was going to be a paypal like option. They could still roll up the fees to the person doing the installment.
Margins are margins, If its getting more ammo in to the hands of more Americans, its a good thing.I am assuming this is to generate more sales? You could always try dropping your prices first.
I doubt TSUSA is financing this in house, they normally partner with a high interest lender and if you don't pay it off in time the interest is "free" then the interest is added back to day 1 at some rate that would be considered usury in some jurisdictions.
TSUSA gets 95 cents on the dollar at the time of sale, the finance company carries the debt hoping you don't make that final payment on time and they make big bucks on the finance charges on money they are getting from the Fed from next to nothing
Furniture stores do this all the time
Or- make a finance option only available to members who already pay an annual fee. Make it a pay to play option and they can blend in the risk to the memberships instead of the ammo pricing?...and there is the rub. If TSUSA has to take a 5% hit to offer this service, this will be incorporated into the prices the rest of us not using said service would have to pay. In other words - price increases.