Dual Pricing: A Fair Way to Manage Costs & Keep Your Customers Happy

1. The Challenge

• Your service price has been $125 for years.

• Customers predominantly pay by card, and you lose 3–4% to credit card processing fees on every transaction.

• You’d like to avoid raising everyone’s price by 4% (which would be $130 across the board), but you still need to protect your margins.

  
  

2. The Dual Pricing Solution

1. Cash Price: $125 (your current or original rate).

2. Card Price: $130 (adding $5- equal to roughly 4%- to offset card fees).

Rather than forcing all customers to pay $130, you provide a choice:

• Pay $125 with cash.

• Pay $130 if you prefer using a card.

  
  

3. Why This Works, Even If Most Customers Pay by Card

• No Across-the-Board Price Hike

  • Customers who pay with cash continue at $125- no penalty or hidden increase.

  • Card transactions cover the real cost of processing, without eating into your margins.

• Transparent, Not Pushy

  • No aggressive sales tactics- just two clear prices.

  • Customers understand they’re paying for the added convenience or earning reward points.

• Minimal Pushback

  • This structure is already common- gas stations, utility providers, and more.

  • People appreciate knowing why there’s a difference- and can still pay the original $125 if they choose cash.

• Combat Rising Costs Fairly

  • Avoid tacking on 4% to every sale.

  • Retain a competitively low “cash price” and pass along the actual card fees only to those who opt for plastic.

    
    

4. Easy Talking Points for Staff

1. Emphasize the Baseline

   “$125 is still our standard price if you pay cash.”

2. Highlight the Choice

   “If you prefer to pay by card, the total is $130, covering the bank’s fee.”

3. Stay Positive

   “This helps us avoid raising our prices across the board- giving you the power to choose how you’d like to save.”

   
   

5. The Benefits for Your Business

• Save Thousands in Fees

  • Reclaim 3–4% of every card transaction that currently chips away at your profit.

• Retain Customer Goodwill

  • No blanket price hikes- only a minor adjustment for card usage.

• Demonstrate Fairness & Transparency

  • Cash customers no longer subsidize card payers; each pays according to the cost they incur.

    
    

Ready to Implement Dual Pricing?

1. Set $125 as your cash price- no change for long-term customers.

2. Make the card price $130 to precisely cover the 4% fee.

3. Train staff on a quick explanation that frames card fees as a choice, not a penalty.

Stop letting processing costs cut into your margins.

Contact us today to implement Dual Pricing and start keeping more of what you earn!