Why would B&H promote this??

Started 3 months ago | Discussions
mamallama
mamallama Forum Pro • Posts: 55,858
Re: Why would B&H promote this??

Tom_N wrote:

mamallama wrote:

The promotion as I understand it is the customer avoids paying sales tax which violates #4.

The site says: "save the equivalent to the sales tax" and "B&H will collect and remit sales tax in accordance with state sales tax laws and regulations. So customers do pay required sales tax …"

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

I was believing what was in the OP.

a card inserted promoting this "Payboo" card that one could use to save sales tax in some instances.

 mamallama's gear list:mamallama's gear list
Panasonic Lumix DMC-GX85 +1 more
tbcass
tbcass Forum Pro • Posts: 43,202
Re: Why would B&H promote this??
1

Timzee wrote:

tbcass wrote:

That is true and but have no sympathy for them. On the positive side it makes reward credit cards possible for those of us who can manage our finances properly.

How nice that you can manage your finances properly and don't have to count yourself among the many thousands of people who carry credit card debt as a way of getting by paycheck to paycheck. Yeah, but I'm sure they're all just irresponsible and just don't know to manage their finances.

That's right. In the long run it costs far more to pay credit card interest which, for many people, is the reason they live paycheck to paycheck. What is the answer. Don't buy anything you can't pay for even if that means living hand to mouth. If you depend on credit cards to get by then apparently you don't understand simple math and how to live on a budget. Rather than buying now with a credit card make payments to yourself until you have the cash to pay for it.

-- hide signature --

Tom

 tbcass's gear list:tbcass's gear list
Sony RX100 Sony RX10 IV Sony a99 II Tamron SP AF 90mm F/2.8 Di Macro Sony DT 35mm F1.8 SAM +10 more
Black Elk
Black Elk Regular Member • Posts: 124
Re: Why would B&H promote this??

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.

-- hide signature --

Vaughan K.

 Black Elk's gear list:Black Elk's gear list
Sony Cyber-shot DSC-HX80 Sony a6000 Sigma 30mm F1.4 for Sony E Sigma 16mm F1.4 DC DN (Sony) Sony E 18-135mm F3.5-5.6 OSS +1 more
Jonsi
Jonsi Senior Member • Posts: 4,104
Re: Why would B&H promote this??
2

Black Elk wrote:

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.

Lol.  These posts are always funny.

CMCM Senior Member • Posts: 4,426
Re: Why would B&H promote this??
1

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.

Why?  B&H has to charge tax now.  You as a buyer can use any credit card you want, and you can just buy from them using your own CC just like you would buying anywhere else.  And pay the tax like everywhere else.   Or if you want to save the tax whenever you buy from them, you can use their card and pay the balance immediately, thus paying none of that interest.

IMHO, I think the 29% interest is to encourage those who use the card to pay it off and not carry a balance.  If you have to carry a balance, you're better off using a different card.

 CMCM's gear list:CMCM's gear list
Fujifilm X30 Nikon Coolpix P900 Canon G7 X II Nikon D700 Nikon D5600 +14 more
Black Elk
Black Elk Regular Member • Posts: 124
Re: Why would B&H promote this??

Jonsi wrote:

Black Elk wrote:

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.

Lol. These posts are always funny.

You don't get it.....the bottom line is profit.  B&H is doing no one a favor in the long run.

-- hide signature --

Vaughan K.

 Black Elk's gear list:Black Elk's gear list
Sony Cyber-shot DSC-HX80 Sony a6000 Sigma 30mm F1.4 for Sony E Sigma 16mm F1.4 DC DN (Sony) Sony E 18-135mm F3.5-5.6 OSS +1 more
Marek M Contributing Member • Posts: 960
Re: Why would B&H promote this??

Black Elk wrote:

Jonsi wrote:

Black Elk wrote:

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.

Lol. These posts are always funny.

You don't get it.....the bottom line is profit

What else do you propose should it be?

B&H is doing no one a favor in the long run.

-- hide signature --

Vaughan K.

mamallama
mamallama Forum Pro • Posts: 55,858
Re: Why would B&H promote this??

CMCM 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.

Why? B&H has to charge tax now. You as a buyer can use any credit card you want, and you can just buy from them using your own CC just like you would buying anywhere else. And pay the tax like everywhere else. Or if you want to save the tax whenever you buy from them, you can use their card and pay the balance immediately, thus paying none of that interest.

IMHO, I think the 29% interest is to encourage those who use the card to pay it off and not carry a balance. If you have to carry a balance, you're better off using a different card.

They count on enough inadvertent neglects to make money off of the promotion.

 mamallama's gear list:mamallama's gear list
Panasonic Lumix DMC-GX85 +1 more
Laybourne
Laybourne Forum Member • Posts: 57
Re: Why would B&H promote this??
1

Black Elk wrote:

Jonsi wrote:

Black Elk wrote:

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.

Lol. These posts are always funny.

You don't get it.....the bottom line is profit. B&H is doing no one a favor in the long run.

Good post. Corporate social responsibility (CSR) has grown in prominence these days , which means it's important not just to make money, but to make it the right way.

Businesses that can't see further than their own $$$ are out of step with the times.

-- hide signature --

Fear is the darkroom where the Devil develops his negatives.

Marek M Contributing Member • Posts: 960
Re: Why would B&H promote this??
2

Laybourne wrote:

Black Elk wrote:

Jonsi wrote:

Black Elk wrote:

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.

Lol. These posts are always funny.

You don't get it.....the bottom line is profit. B&H is doing no one a favor in the long run.

Good post. Corporate social responsibility (CSR) has grown in prominence these days , which means it's important not just to make money, but to make it the right way.

What is wrong with the way BH do business?

Credit card interest? Please, they are not a bank.  You do not pay a penny in interest if you are a responsible buyer.

They give you the rules up front. Nothing hidden.

How is it not making money the right way?

Businesses that can't see further than their own $$$ are out of step with the times.

-- hide signature --

Fear is the darkroom where the Devil develops his negatives.

mamallama
mamallama Forum Pro • Posts: 55,858
Re: Why would B&H promote this??

tbcass wrote:

Timzee wrote:

tbcass wrote:

That is true and but have no sympathy for them. On the positive side it makes reward credit cards possible for those of us who can manage our finances properly.

How nice that you can manage your finances properly and don't have to count yourself among the many thousands of people who carry credit card debt as a way of getting by paycheck to paycheck. Yeah, but I'm sure they're all just irresponsible and just don't know to manage their finances.

That's right. In the long run it costs far more to pay credit card interest which, for many people, is the reason they live paycheck to paycheck. What is the answer. Don't buy anything you can't pay for even if that means living hand to mouth. If you depend on credit cards to get by then apparently you don't understand simple math and how to live on a budget. Rather than buying now with a credit card make payments to yourself until you have the cash to pay for it.

That is true for those who can pay for everything they need at the moment. For some others, sadly, not so much.

 mamallama's gear list:mamallama's gear list
Panasonic Lumix DMC-GX85 +1 more
The Davinator
The Davinator Forum Pro • Posts: 22,484
Re: Why would B&H promote this??
1

Marek M wrote:

Laybourne wrote:

Black Elk wrote:

Jonsi wrote:

Black Elk wrote:

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.

Lol. These posts are always funny.

You don't get it.....the bottom line is profit. B&H is doing no one a favor in the long run.

Good post. Corporate social responsibility (CSR) has grown in prominence these days , which means it's important not just to make money, but to make it the right way.

What is wrong with the way BH do business?

Credit card interest? Please, they are not a bank. You do not pay a penny in interest if you are a responsible buyer.

They give you the rules up front. Nothing hidden.

How is it not making money the right way?

Businesses that can't see further than their own $$$ are out of step with the times.

Exactly

 The Davinator's gear list:The Davinator's gear list
Canon EOS D30 Canon EOS 10D Nikon D2X Fujifilm X-Pro1 Fujifilm X-T1 +17 more
Marek M Contributing Member • Posts: 960
Re: Why would B&H promote this??
2

mamallama wrote:

That is true for those who can pay for everything they need at the moment.

For some others, sadly, not so much.

They should work on their needs. I do not buy things that are not priced for me. I have not had any debts for many many years.

mamallama
mamallama Forum Pro • Posts: 55,858
Re: Why would B&H promote this??

Marek M wrote:

mamallama wrote:

That is true for those who can pay for everything they need at the moment.

For some others, sadly, not so much.

They should work on their needs. I do not buy things that are not priced for me. I have not had any debts for many many years.

Good for you. You sound so proud of yourself in letting us know that you have been debt free for many years. For various reasons, some are not as fortunate as you no matter how hard they work on their needs.

 mamallama's gear list:mamallama's gear list
Panasonic Lumix DMC-GX85 +1 more
Jonsi
Jonsi Senior Member • Posts: 4,104
Re: Why would B&H promote this??
1

Black Elk wrote:

Jonsi wrote:

Black Elk wrote:

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.

Lol. These posts are always funny.

You don't get it.....

That you probably never bought from B&H in the first place?

That they won't miss you when you're (supposedly) gone?

That you "leave" some retailer because they offer something you don't have to partake in?

How do you not find that overreaction funny?

the bottom line is profit.

So the bottom line for a retailer is profit?

Have you reported this to the FTC? The BBB?

B&H is doing no one a favor in the long run.

Actually, they're saving buyers the amount of their sales tax.

Who cares if they make out on the deal too?

Marek M Contributing Member • Posts: 960
Re: Why would B&H promote this??
1

mamallama wrote:

Marek M wrote:

mamallama wrote:

That is true for those who can pay for everything they need at the moment.

For some others, sadly, not so much.

They should work on their needs. I do not buy things that are not priced for me. I have not had any debts for many many years.

Good for you. You sound so proud of yourself in letting us know that you have been debt free for many years.

Absolutely. It is very fitting in a downright silly discussion of a credit card interest at a camera store. We are not talking basic needs here. We are talking about needs that can be easily suppressed.

For various reasons, some are not as fortunate as you no matter how hard they work on their needs.

Fiscal irresponsibility would be number one.  There are surely many cases of hardship, circumstances beyond control. But most, I venture to say, are not.

Jonsi
Jonsi Senior Member • Posts: 4,104
Re: Why would B&H promote this??
3

mamallama wrote:

Good for you. You sound so proud of yourself in letting us know that you have been debt free for many years. For various reasons, some are not as fortunate as you no matter how hard they work on their needs.

Needs ?!

You realize this is a thread about financing camera equipment, right ?

Not feeding your family.

Michael Fryd
Michael Fryd Forum Pro • Posts: 11,447
Re: Why would B&H promote this??

mamallama wrote:

Michael Fryd wrote:

mamallama wrote:

Michael Fryd wrote:

tbcass wrote:

It's away to avoid paying sales tax. Why gripe about it. It's foolish not to pay any credit card off right away.

Technically, you are still paying the taxes. You are merely getting other benefits (i.e. a rebate on the product purchase) that offset the financial burden of the taxes.

In many states it is illegal for a store to pay the taxes for you. B&H had to be very careful in how they structure this program so that it falls within the letter and spirit of the law.

Yes, it's a disguised loophole to get around certain regulations - sort of a mild con job.

The regulations are designed to:

  1. Ensure that the sales taxes are paid
  2. Make sure the tax is collected on the actual purchase price
  3. Make sure the customer knows that sales tax has been collected
  4. Make sure the sales tax is actually paid by the customer (sales taxes paid may warrant a different treatment for tax purposes)

I don't see where this program gets around the letter or the spirit of any of these.

The promotion as I understand it is the customer avoids paying sales tax which violates #4.

...

You have misunderstood the promotion.

The customer continues to pay the sales tax.

The credit card company provides a cash rebate to the customer which can be used to pay some of the debt.

===-

Correction, that's the description of just about every cash back credit card.  The uniwue things about the PayBoo card are:

  • It's can only be used at B&H
  • The cash back rate on some purchases will be higher than what you can get with other cards
 Michael Fryd's gear list:Michael Fryd's gear list
Nikon Coolpix AW130 Canon EOS D60 Canon EOS 7D Mark II Canon EOS 5DS Canon EOS 5D Mark IV +16 more
Michael Fryd
Michael Fryd Forum Pro • Posts: 11,447
Re: Why would B&H promote this??
3

Black Elk wrote:

Jonsi wrote:

Black Elk wrote:

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.

Lol. These posts are always funny.

You don't get it.....the bottom line is profit. B&H is doing no one a favor in the long run.

Actually, a profit motive by a company can result in benefits for consumers.  Some companies make more money by providing better products/services than their competitors.  By providing better value to consumers, a company can increase sales and make more profit.  This is good for both the consumers and the company's bottom line.

 Michael Fryd's gear list:Michael Fryd's gear list
Nikon Coolpix AW130 Canon EOS D60 Canon EOS 7D Mark II Canon EOS 5DS Canon EOS 5D Mark IV +16 more
mamallama
mamallama Forum Pro • Posts: 55,858
Re: Why would B&H promote this??

Michael Fryd wrote:

mamallama wrote:

Michael Fryd wrote:

mamallama wrote:

Michael Fryd wrote:

tbcass wrote:

It's away to avoid paying sales tax. Why gripe about it. It's foolish not to pay any credit card off right away.

Technically, you are still paying the taxes. You are merely getting other benefits (i.e. a rebate on the product purchase) that offset the financial burden of the taxes.

In many states it is illegal for a store to pay the taxes for you. B&H had to be very careful in how they structure this program so that it falls within the letter and spirit of the law.

Yes, it's a disguised loophole to get around certain regulations - sort of a mild con job.

The regulations are designed to:

  1. Ensure that the sales taxes are paid
  2. Make sure the tax is collected on the actual purchase price
  3. Make sure the customer knows that sales tax has been collected
  4. Make sure the sales tax is actually paid by the customer (sales taxes paid may warrant a different treatment for tax purposes)

I don't see where this program gets around the letter or the spirit of any of these.

The promotion as I understand it is the customer avoids paying sales tax which violates #4.

...

You have misunderstood the promotion.

The promotion was targeted at those emotionally upset at having to pay sales tax on their internet purchases. You notice they did not just say they get an 8% price reduction with use of this card but keyed the promotion on not paying sales taxes in an off-handed way. The off-handed way it was promoted is the mild con job I referred to earlier.

The customer continues to pay the sales tax.

The credit card company provides a cash rebate to the customer which can be used to pay some of the debt.

===-

Correction, that's the description of just about every cash back credit card. The uniwue things about the PayBoo card are:

  • It's can only be used at B&H
  • The cash back rate on some purchases will be higher than what you can get with other cards
 mamallama's gear list:mamallama's gear list
Panasonic Lumix DMC-GX85 +1 more
Keyboard shortcuts:
FForum MMy threads