Yahoo Finance 3 Ways To Get Major Discounts Simply by Paying in Cash
The mantra “cash is king” proves true in certain instances, as paying that way saves money at a variety of businesses. Indeed, many Americans are turning to cash for rebates. The share of all-cash purchases that came with a discount increased 66% between 2015 and 2022, The Wall Street Journal reported, citing data from the Federal Reserve Bank of Atlanta.
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And it makes sense for businesses; by steering consumers away from plastic, they cut the fees they incur on credit card charges.
“In avoiding credit cards, a business saves on all kinds of administrative costs associated with billing, processing partial payments, trying to collect on unpaid bills,” said Tanya Peterson, consumer finance expert and vice president of brand at Achieve. “It also means they get the cash right away, which can be a big factor in helping a smaller business grow.”
So where and how can you take advantage of these cash discounts? According to experts, they are available from a variety of businesses, from mom-and-pop shops to restaurants, said Renee McBride, digital marketing manager for Acumen Connections.
“Businesses are facing inflation these days, just like consumers,” said McBride. “A cash discounting program can be an alternative to stores having to raise prices. Cash discount programs are a win-win for shoppers and the business.”
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From Small to Large Businesses
According to Achieve’s Peterson, all types of service providers — from contractors to cake bakers, and from decorators to wedding videographers — may offer cash discounts.
For instance, Lamia’s Fish Market in Manhattan offers a 10% discount to diners who pay in cash, according to NBC News. The owners started the practice during the pandemic and continued to offer it thanks to its success.
“We came up with this idea just to push sales, to give an incentive to our guests, to come back, to spend more,” owner Lamia Funti told NBC.
There are also more surprising areas that offer cash discounts: medical providers.
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“Paying for a medical service in cash can mean savings of 25%, 50%, even up to 75% of the cost they bill through insurance,” said Peterson, noting that if you are looking to meet your deductible or dealing with procedures with high costs, it is, of course, best to go through insurance.
“But if your insurance doesn’t cover something, if it’s imperative to go out of network or it is a smaller cost, ask about a cash price. This is often helpful with dental providers for individuals who do not carry dental insurance,” she added.
Based on industry standards, according to McBride, customers who pay cash may expect to save around 4% on their total bill. As for businesses — they save an average monthly of $515 after implementing cash discount plans.
How To Find Cash Discounts
How do you know where and how to save?
Look for the Signs
Literally.
“Businesses running cash discount programs are required to prominently display signage, typically near the register or entrance,” McBride said. “Keep your eyes peeled for these telltale signs of savings during your next shopping excursion.”
Check the Receipt
Some establishments include information about their cash discount program at the bottom of your receipt.
“Don’t toss it aside — take a moment to scan for any additional savings opportunities,” said McBride.
Ask and Inquire
When in doubt, don’t hesitate to ask the cashier or staff members about cash discount offerings.
“They’ll be more than happy to provide you with the scoop on how you can maximize your savings,” McBride added.
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This article originally appeared on GOBankingRates.com: 3 Ways To Get Major Discounts Simply by Paying in Cash
