Why would B&H promote this??

Started 2 months ago | Discussions thread
Doug J Forum Pro • Posts: 10,236
Re: You are 100% wrong

mamallama wrote:

Marty4650 wrote:

LoneTree1 wrote:

Black Elk wrote:

CMCM wrote:

From the credit card company's point of view (Synchrony Bank), they know that 38-40% of people carry a balance, so they'll make it back in interest fees that are much higher than the tax amount. B&H is huge, so no telling what kind of deal they struck with Synchrony.

Yup. Henry can spin this anyway he wants but the bottom line is that B&H is gonna make money off of this. I have no problem with a business making money......it is how they do it. Both will come out ahead. Caveat emptor. Looks like I will be going elsewhere for my camera gear.

Camera sales are toilet-bound. They need alternate revenue streams. Exploiting the least valuable customers is a last-ditch kind of thing.

I have no idea what world you live on, but giving a generous rebate to a customer isn't "exploitation."

It is the exact opposite.

It is a reward designed to attract or retain a customer. It is price competition in the marketplace. And it is entirely voluntary. If you prefer to pay more, then some other vendor will gladly charge you more.

Very few forms of "exploitation" are voluntary.

Most of us live in a world where a 2% or 3% cashback bonus is considered generous. Yet you claim a bonus that could be as high as 11.63% in some parts of California is somehow "exploitation."

Are you saying the "no tax" benefit applies to every purchase?

He didn't say that.

I think it just applies to internet purchases from B&H?

No. I suggest you read the terms on the B&H website. "Now, with the B&H Payboo Card, save the equivalent to the sales tax you pay on every purchase shipped to eligible states."

https://www.bhphotovideo.com/credit-cards

As such I think your as much as 11.63% bonus is not accurate.

I highlighted the relevant text from Marty's post, above.

What B&H is doing here is cutting their OWN profit margin to gain a competitive advantage over their market rivals. This will surely cost them money, since their cut of that 29.99% APR wouldn't be very much more than Amazon's cut of the 24% APR that bank cards impose.

Amazon may not care about it, but I bet Adorama has considered doing the same thing, since they are only a mile away from B&H, and compete for the same walk in customers.

Cheers,
Doug

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tko
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