The pricey convenience-store chain, 7-Eleven, gave a big waaaaaaah today. They whined about the cost of doing business, namely the fee they pay Visa & MasterCard when they make a charge-card sale.And they want you to sign their petition about those "unfair" fees so they can take it to Congress and show how we want them to fix it for poor lil ol' 7-Eleven. Who do they think they are? MoveOn.org?
Yeah, I'm gonna sign their petition right after I drop in at MoveOn, gas up the car and give 'em 5 bucks for a gallon of milk. Hello, 7-Eleven? You are a CONVENIENCE STORE. You sell overpriced crap and make your price point because you are SELLING CONVENIENCE.
Here, let them explain it themselves. (from the "about us" page of their website)
. . . Of the more than 5,700 stores the company operates and franchises in the United States, some 4,200 are franchised. . . .*A World-Class Organization
At 7-Eleven Our Mission is: To consistently serve the changing needs of customers for their convenience.
Our Vision is: To be the best retailer of convenience.
Those people have to pay their people, come on, dontcha get it 7-Eleven? Convenience ain't cheap. Credit cards are convenient. Uh, what was your vision again?
Go talk to your bean counters, let them 'splain it to you Lucy that it's called a selling expense. That's how I booked it when I owned an import wholesale company.
Really I am not making this up. Go check the AP story (byline Candice Choi). Or even their document with FAQs about the petition.
Oh you gotta read the last one in which they ask themselves if this means they'd lower prices and they can't even say "yes" or "no".
Well, we know the answer is "no". Pity they didn't have the strength or the honesty to say so.
Notes:
*that's 1500 stores outta 5700, or 26% owned by corporate
D&B estimates 7-Eleven sales at $15,471,100,000 (oh my, that's about the cost of an Iraq-month)
Hoover's says the average convenience store grosses $2,000,000 in sales annually
7-Eleven is whining about an average of $28,000 in fees annually
Hmm. That's 1.25% of sales. Do you feel their pain yet?
For another credit card story, check Fred's blog: Your interest rates will increase and your credit limits will decline if you are not shopping like you used to shop with them.... in which he advises they even look at where you shop to see if you might be on hard times.
Why not offer a CASH DISCOUNT?
ReplyDeleteCredit Card Companies and the Banks are upping all their fees and interest charges, BECAUSE THEY CAN. And, what is not as well known is that they NOW HAVE the same position as secured creditors in bankruptcy under the Bush Administration changes to the bankruptcy guidelines. WE NEED to use LESS credit and save more, but interest rates by our banks are so low that it seems to discourage it.
HEY! We need to get some of those California IOU's with 5% interest on the face value payable in October!
So, when you are in 7-11 ask for a CASH discount of 1%: $1.50 is 1.5 cents back call it 2 cents. Better yet, if it is $1.57, tell them to knock off the 7 cents and make it $1.50 for CASH. It is a better deal for you!
Fred