Why Little Caesars Wants Your Cash

So tonight I was making a last minute run to Little Caesars Pizza for the Crazy Combo.  My kids love the crazy bread and I like the quick, ready for you, pizza.

And as I go pull out my American Express Card to pay my bill…

…they tell me they don’t accept credit!  What???

A little flustered (haven’t pulled out the cash in a while), I ask what happened to paying with credit?

They said that I can use a debit card or cash.  And they’re charging $.49 cents for the debit card.

Well I hate paying extra (I do it without even thinking about it at other places but if it confronts me then I find a way to go another route).

So I pull out my cash and pay.

So in the last month Little Caesars has come up with this new plan to keep prices down.

“CASH DISCOUNT – In an effort to keep our prices low, our displayed prices reflect a discount of $.49 cents for cash transactions.”

I’ve noticed the same thing recently at nearby gas stations too.  They’re starting to post cash prices in order to show lower prices on their signs.  I’m guessing with people watching their money and using debit cards more, those people are willing to go to gas stations like ARCO that give better prices.  Or to Safeway or CostCo for their gas.

It is kind of interesting to see this go full circle.

We all know that credit cards cost businesses a few percentage points on their sales.  It has always been beneficial to keep accepting credit cards to ensure the fewest barriers to payment.  And people are just more willing to pay on credit without even batting an eyelash.

So why the push to cash all of a sudden?

I think it goes back to the fact that all businesses need to differentiate themselves from their competitors.  The concept of “competitive advantage” or “unique selling proposition”.

ARCO was the first major player to focus on the cash market.

Now Little Caesars is doing the same.  They want to be the fast, low cost pizza takeout option for cost conscious patrons.  And the cash model fits with that.  If they can shave a few cents off the bill then they can stay on top with the cut rate crowd.

So how do you view this in your business?

Are your target clients the cash price people?  Those watching every dollar and shopping for the best price?

Or are you focusing on the time-challenged executives and harried soccer moms?  In that case maybe credit is best and the lowest dollar isn’t your niche.

Would a cash option bring people to you who otherwise went elsewhere?  Are they sitting on the fence waiting for that price to come down?

Well you’ll never know by just guessing.  Run a test.  See if it improves or hurts your results.  You might be surprised by what you find out.

Small tweaks matter…

Often people are surprised by the effect small changes can have.  A bit of a marketing tweak can often double or triple effectiveness.  Are you thinking out of the box?  Have you examined your marketing, your operations, your differentiation lately?

When you’re tired of getting the same or even less results in your business from all the hard work you do, contact me for some out-of-the-box thinking about your business.  Transforming your business vehicle to take it to the next level of success.

Not ready yet?  Did you get at least $.49 cents of “Little Caesars” benefit? Still contact me.  Or sign up for my ezine or like or share this post so others can get a bit of benefit too.