♫ Come in and see the good, good good guys. Pay cash and we’ll slash the prices… ♫
If you live in Australia, you’ve seen the TV advertisement and heard the jingle. It’s a pretty simple proposition. It encourages customers to negotiate a price. I went to the Good Guys to buy a fridge and negotiate like everyone else does.
After we cut the deal and agreed on a price, I proceeded to pay in cash, when the sales guy said; ‘Credit card is fine. We are not that strict on cash payments these days.’ So I paid using my card.
It got me thinking about the truth of the Pay Cash and we’ll slash the prices tagline / tactic. It is a simple point of difference and traffic generator. The idea of the cash payment is really something that can only work on a micro level. A large retailer couldn’t dodge the tax man through taking cash payments and justify provide an unusually large discount. The supply chain has too many parties involved. Rather, it is used to appeal the the customer who thinks they are getting a better deal by paying cash. It’s perception marketing. The insight for startups is this: if this works for the customer, that’s all that really matters.
I’ve had a similar experience and when I asked about it the guy said that when they say cash, they just mean not financed aparently!
I always thought it was so they didn’t have to pay the 3% surcharge or whatever it is on CC payments.
I’m surprised you so quickly associate cash payment with a tax dodge. It can also be about wanting to insure cash flow rather than waiting for credit card funds to come through… for a man who acknowledges that cash flow is king, I’m stunned you didn’t see that connection.
I know one of the guys that sings in these ads. They are classic!
Its a great jingle that draws you in with the perception of savings… Yes, there is real business reasons for cash…
But, what I have personally found is that I can usually get a BETTER deal by going to David Jones or JB Hi-Fi for a price match..!!
Those retailers simply don’t advertise “pay cash & we’ll cut the prices” as their main marketing tool… (^_^)
“Pay less, pay with credit” just doesn’t have the same ring to it!
I think it’s also an example of how a companies culture and practises change over time. When they first started “pay less, pay cash” was probably the best thing for them: it was a good hook and cash flow would have been extremely tight.
When you’re a smaller company you can also get away with a lot more (perhaps like not declaring all of your income) that a company the size of the Good Guys would never dream of trying these days.
Perhaps the catchy jingle had a use-by date, however, when I tried to negotiate a discount on a dimplex heater at $169 at the Artarmon store in Sydney, the cashier, Monica F, refused to negotiate.She said that prices were cut so much she couldnt negotiate. Harvey Norman and DJs, will, so Good Guys, Go Figure!!