You could lower price to try and gain market share.Even if you are correct that merchants will pass along the savings (which I do not believe), you think the demand of say TV will increase? Obviously we have different opinions on the effects of the settlement that only decrease swipe fee for 5 years. In any case, I do not see how this discussion is fruitful. At this point, I thank you for the discussion and refrain from further discussion.No, merchants lowering the price because they now have lower costs would increase demand.I am not sure that the swipe fee decrease will increase demand (in general).Because profit margin is the goal, profit is and you aren't accounting for quantity - when price goes down quantity sold (may) increase and thus, with the same margin, profit increases.If the merchants feel that that they will end up with x% profit margin, why go through the song and dance?
Gaining market share may lower your costs in some cases.
FWIW - this is what we have done in the past.
Statistics: Posted by smitcat — Sun Apr 21, 2024 7:11 am — Replies 259 — Views 16369