About those pesky Paypal fees

Discussion in '[OLD FORUM] Bass Guitars, Amps, and Accessories: F' started by Flatwound, Jun 11, 2004.

  1. Flatwound

    Flatwound Supporting Member

    Sep 9, 2000
    San Diego
    Guys, I don't mean to offend, but it seems kind of dorky to get excited about 3%. I mean, when I've made deals here and on other boards, sellers are often willing to negotiate, maybe do some give and take just to sell an item, so what's the big deal about 3%? I see an item for $125 shipped, but you have to pay the paypal fees. So you're willing to pay what may amount to, say, $8 to $15 to ship your item, but if the seller won't pay that $3.75, no deal? Seems a bit off-putting to me.

    Let's say I'm selling a $500 bass. The buyer paypals me $500 and $20 shipping for a total of $520, but he uses paypal. So I actually get $504.60. But that's OK with me, because I sold it at Talkbass where I get a free ad. No advertising cost. An ad in my local paper would cost at least as much as the Paypal fees, and I wouldn't get worldwide coverage like I get here. Also, I get my money faster, and the buyer gets the bass faster. Sounds like win-win to me. :)

    Anyway, that's my $.02. :bag:
  2. I agree 100% .
    Thank God for free advertising, you bunch of tight wads. ;)
  3. cheezewiz


    Mar 27, 2002
    That's a pet peeve of mine too, and I usually immediately write off any ads I see that say "paypal OK if you pay 3 percent extra". Jeeze.....make your price 3 percent higher if it means that much to ya.
  4. Josh Ryan

    Josh Ryan - that dog won't hunt, Monsignor. Staff Member Supporting Member

    Mar 24, 2001
  5. boogiebass


    Aug 16, 2000
    Absolutely. I totally agree.
  6. i've found that it's much easier to include shipping in my asking price, too. that way i can calculate how much i want to make and don't have to negotiate "well, actually shipping is $9.67, so why don't you just add $10 to the price..."

    add shipping to your price and make your life and my life easier.

  7. David Wilson

    David Wilson Administrator Staff Member Administrator Supporting Member

    Oct 14, 2002
    Lower Westchester, NY
    I agree with just about all of this. I build any fees into the price.

    However, if I'm selling something for $1000 shipped and someone offers me (say) $900 I might say "ok, as long as you pay by money order".
  8. fretlessrock

    fretlessrock Supporting Member

    Aug 8, 2002
    I see PayPal as a convenience for the seller first, then a convenience for the buyer. It is a way for a seller to accept credit card and bank transfer payments with no up front cost (they actually pay you $5 to start an account) an get paid instantly. I also won't pay a fee to buy with paypal. Sellers are free to ask, but it would seem smarter to build it in to the price and then maybe offer a rebate to the actual purchaser if they use a money order. Otherwise it is just squeezing buyers for a cost that they shouldn't be bearing, IMO.
  9. poman

    poman Supporting Member

    Feb 18, 2002
    Man, I've thought this for a while ! I mean if i'm selling a $1,500 item, and it's a item that is priced really low....then I'll just split the fees 50/50, but for $500 items and under...I mean really...I prefer to use Paypal, but I will not buy your $100 pedal if you say I have to pay $3 fees, just on principle alone....just very tacky IMHO :D
  10. I also agree. That 3% puts me off since we are both using the service. I would be satisfied if we split the service cost 50/50.
  11. ampeglb100


    Oct 1, 2002
    Portland, OR
    Paypal is convenient for the seller to some degree (it is quicker, but it still takes several days for the money to transfer into your account) but really it is a huge benefit for the buyer to be able to put the purchase (especially really expensive ones) on his/her credit card. Whereas if Paypal is not an option at all, then the buyer must come up with the cash and send a M.O. (for example). I think the buyer and seller should split the fees, IMHO, because everyone is benefiting. However, I personally don't mind waiting, what... 2-3 days for the M.O. and then just depositing it into my local bank. That, to me, is not worth me (the seller) paying 3% on a $500 - $800 sale (and definately not a $1500 one).

    Also, I think it is better to separate costs when dealing with shipping and other fees. That way, again IMHO, everyone is clear on what the costs are (because shipping from Portland, OR to Seattle way less than to Florida) and no one feels like they are getting screwed. Talkbass is free to post on, but there are way more flakey people here too (whoops...), however the Dudepit is not free, but I trust those folks way more.

  12. Planet Boulder

    Planet Boulder Hey, this is a private residence...man Supporting Member

    Nov 10, 2001
    6,482 feet above sea level
    I once had impure thoughts. Oh, and I pluck my ear hair.
    I've passed on a few deals because the seller was too stubborn to use PayPal.

    I've used it to sell and I'll gladly pay the fees to get my bread quickly and to be able to ship it out immediately.

    Well said, Flatwound!
  13. MJ5150

    MJ5150 Terrific Twister

    Apr 12, 2001
    Lacey, WA
    I prefer not to buy things from people who get all excited about 3%.

    Since we are talking about fees......THANK YOU to Paul for letting us buy and sell our gear free of charge on your site.

  14. Dr. PhunkyPants

    Dr. PhunkyPants Guest

    Aug 11, 2002
    just. price. it. higher.

    glad we could have this conversation.
  15. pistoleroace


    Sep 13, 2002
    Here is the deal, it costs money to use a credit card, period. When I sell something online I put the price I want to sell it at and if someone wants to use Pay Pal, they will have to pay the 3% if they want the item. Here is my way of looking at it. Why should I just work the extra 3% into the price and penalize the person who would be sending a money order or cashier's check? I would rather be up front about the deal by telling a person a cash price and a credit card price. If I sold someone an item for $1500 or so, why should I take a $45 loss or more because someone wants to use Pay Pal. To me, that's the other person's problem it they want to use Pay Pal.

    I guess the bottom line is, if you want to use a credit card and don't want to pay the extra fee then move on and don't bitch about it because you don't like the seller's terms. I will not take a loss on an item because someone wants to use a credit card and nor should anyone.

    A lot of you may not know this but, most stores do mark up extra to cover credit card purchases and the fees that go along with it so, the people that are paying cash are paying for the ones that need to use a credit card.
  16. Planet Boulder

    Planet Boulder Hey, this is a private residence...man Supporting Member

    Nov 10, 2001
    6,482 feet above sea level
    I once had impure thoughts. Oh, and I pluck my ear hair.
    pistoleroace: So, if I go to a gas station and pump 1 cent of gas, then pay at the pump via credit card, the gas station will actually lose money from my purchase, right?

    If so, what a great way to get back at gas stations who consistently charge more for gas.... :D
  17. Dr. PhunkyPants

    Dr. PhunkyPants Guest

    Aug 11, 2002
    ...why not price it up and then offer a 3% discount to those who'll send you a money order or whatever and not use paypal?

    See that's what annoys me. It's these guys who say it'll be "$450 plus 3%" in an ad that I just skip right over. My brain can't compute and plus, it sounds flaky. Who sells something for $463.50? I'd say "It'll be $465, unless you want to pay by cash or MO. Then it'll be $450."

    How's that rub you?
  18. pistoleroace


    Sep 13, 2002
    Every time a business swipes a credit card through the machine, they are charged a certain percentage of the sale and the store loses that money. This not only includes a sale but also returns and if you have to manually punch the credit card number into the machince because the strip to swipe the card is faulty, you get charged even more. Depending on the credit card service the individual companies are using, it can cost them anywhere from 1% to 3% of the credit card sale. The big mart stores pay the lower percentage because of the volume of business they do and all the credit card companies want their busines so to to compete, the credit card service companies try to undercut the other by offering a lower percentage. Same goes for the smaller businesses but, being they don't have the volume, they end up paying more percentage which depending on their volume of business could be 2%-3%.

    Not many people know about this and if you don't believe me, talk to someone you know that owns or manages a business.
  19. pistoleroace


    Sep 13, 2002
    There is nothing wrong doing it that way at all, but either way, the end result is the same so who cares which way it is done as long as the potential buyer is made aware of the cash and credit card (Pay Pal) prices. When you have an auction on E Bay, the way you described is the way you are supposed to do it because technically, it is illeagal business practice to charge more for a credit card sale but some businesses, in particular small ones, do it because it eats away at their profit margin and I can fully understand it. That is why most businesses just add that percentage into their markup on products.
  20. Flatwound

    Flatwound Supporting Member

    Sep 9, 2000
    San Diego
    Pistoleroace, I'm guessing you're not a business major. Businesses accept credit cards because they make MORE money that way, not less. The increased sales more than make up for the piddly (in comparison) fees.

    So, if I want to sell a bass, or some strings, or an effect pedal, or whatever, I take Paypal. It's quick and easy, and the item may sell faster due to the convenience. 3% is pretty small beans. And, as others have said, I can always mark the thing up a bit if I'm worried about the fees. That way, if I sell my bass for $1550, and the buyer sends me a M.O., hey! I'm rich! :D

    But it's a free country, do what you want. But I might bitch about it, all the same.