Imagine offering your customers more flexibility with pricing, boosting your sales, and optimizing your inventory. Best of all, it’s achieved with a single system update. Sounds amazing, right? Luckily, that’s exactly what dual pricing can do for your business.
Our unique POS system at FLO Business Solutions is one-of-a-kind and helps you to process your transactions with ease. So, want to see it work for yourself? Then, call us at 803-887-7356 or complete this form for a free demo.
Notably, dual pricing is gaining traction in the retail and small business sectors as a strategic pricing model. Why? Because it is reshaping the way businesses interact with their customers. This blog shares what dual pricing is, how it works within POS systems, and how it benefits retail operations. By the end of this article, you’ll understand its true potential for your business.
What Is Dual Pricing?
First, dual pricing is the practice of setting two different prices for the same product or service. These prices are based on predetermined criteria, such as the payment method. For instance, a business may charge one price for cash payments. Likewise, they use another for credit card payments to offset transaction fees. This strategy is useful for retailers and small business owners wanting to cover rising operational costs while maintaining customer satisfaction.
While traditionally implemented manually, modern POS systems have revolutionized dual pricing by automating the process. Thus, it is easier to manage and customize.
Three Benefits of Dual Pricing
Below, check out three benefits dual pricing brings to your business.
- Offset Transaction Fees. By charging a different price for credit card payments, you will recover costs associated with processing fees.
- Improve Price Transparency. Give customers the option to choose their preferred payment method, knowing exactly how it impacts the price they pay.
- Competitive Edge. Your transparent pricing policy will set you apart from competitors, appealing to cost-conscious shoppers.
How Dual Pricing Works in POS Systems
Modern POS technology makes integrating dual pricing quick and seamless. Here’s a high-level look at how it works.
- Define Your Pricing Strategy. First, decide which products or services will have dual prices. Then, set the criteria for each price point (e.g., payment method, quantity purchased).
- Customize Your POS System. Most POS systems allow you to set up and automate dual pricing rules. You will input two prices for each item and link them to specific triggers, like cash vs. card payments.
- Automate Notifications and Receipts. Your POS system will automatically display and apply the appropriate price at checkout. Then, it is reflected on the customer’s receipt, ensuring transparency.
How Does Payment Processing Work for Business-to-Business (B2B) Transactions?
At FLO Business, there are two B2B payment processing options we recommend. Those are Level 2 and Level 3. We recommend those as they have enhancements for each transaction that include additional data in a payment message. This data is a way to create more secure and reliable payments.
Key Differences Between Level 2 and Level 3 Payment Processing
There are three key differences in these types of payment processing.
- More data is required for each transaction.
- Merchants must put in more effort to collect the additional data and need special software and hardware for Level 3.
- There are lower interchange rates.
Four Major Benefits of Level 2 and Level 3 Processing
When you read those differences, you might be wondering what is in it for your business. Here are four major benefits of these payment processing options.
- Increased security
- Fewer chargeback
- Faster account settlements
- Lower processing costs
Frequently Asked Questions We Hear on This Topic
Do you still have more questions? Never fear! That is why we’ve put together this helpful FAQ section. Our experienced team is also standing by on the phones to answer any questions. Simply call us at 803-887-7356.
What are Some Best Practices for Dual Pricing?
- Be Transparent. Clearly inform customers about your dual pricing policy in-store and online. You’ll want to share any credit card fees up front.
- Train Your Team. Ensure your staff can explain the benefits of dual pricing to customers professionally and confidently. You’ll want your team to share information with customers like benefits of making cash payments.
- Monitor Customer Feedback. Use feedback to assess how your pricing model is being received and make adjustments if necessary.
How Should My Business Handle Dual Pricing Signage?
As mentioned above, clearly sharing your policies is best for dual pricing. One way to do that is by having appropriate digital signage throughout your business sharing these policies. Luckily, at FLO Business Solutions we have a great promotion geared towards digital signage! Click here to learn more about this promotion.
Will I Be Able to See How Dual Pricing Works in Your POS System Before Purchasing?
Yes! We are proud to share our system with you before you even spend a penny. We offer free demos of our system for you to see it first-hand. Click here to schedule your demo!
Plan for a Successful Future with FLO Business Solutions
Dual pricing isn’t just a clever pricing strategy—it’s a glimpse into the future of retail. Whether you’re a retailer or small business owner, dual pricing is the answer to achieving your goals. It’s a way to boost sales as well as cut costs.
FLO Business Solutions is here to help you secure a successful future! Call us today at 803-887-7356 to schedule a demo.
Don’t forget to find us on Facebook and Instagram for lots of great POS content.
Be sure to check out our digital signage promotion as well! Click here to learn more and save money!