banjo-joe - Posted - 03/18/2010:  05:54:47

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I would like for somebody to explain something to me,
I am starting to see this more and more every day, on
the - For Sale Classifieds.

"If using Paypal, just add the percentage for buyers fee."

What are they talking about adding? When you buy something,
and use paypal to pay for it, according to PayPal, the buyer, pays
no fees...So, you add, nothing.

mountiepicker - Posted - 03/18/2010:  06:19:16

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Interesting topic. I understand what you are saying. I think the seller simply wants the buyer to pay the additional fee charged by paypal to use their service. One option would be to advertise the price of one's item with the price increase so that it doesn't look like they are charging for the paypal expense. I have seen this more and more in the classifieds and it can definitely deter some people. However, the seller runs the risk of losing that percentage without charging it and also overcharges people who want to pay with money order. Double edged sword I guess.

Jason

rjanecek - Posted - 03/18/2010:  06:25:53

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paypal automaticaly deducts 3% from the fee received from amount paid

I sold a banjo on ebay 2 days ago, I got 1300 in my account, after fees it was somethign like 1262. so it cost me to accept paypal as a form of payment. if buyer sent me a check or money order, it would be more money in my pocket.

Im one of the folks who say + paypal fees. why should I eat the cost of paypal fees if another would pay differently and not make a paypal payment.. its better to not use it at all in my opinion. its a waste of money. but easy for buyers!

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Edited by - rjanecek on 03/18/2010 06:28:02

Bagpussfrog - Posted - 03/18/2010:  06:42:04

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Paypal is the easiest way to securely pay for items, that's why it's so easy to sell privately.

If paypal wasn't around, people would be less likely to bid or buy your items, that's worth 3% IMHO. I don't think that sellers should add the premium on for Paypal, you accept that it makes it easier, and at the very least, it's better than waiting for a cheque to bounce.

Now Ebay fees, that's another matter - I think they are far too high.

Arthur Hatfield - Posted - 03/18/2010:  06:49:40

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I just may be too old and old fashioned but I do not fool with pay pal or credit cards at all. I'm sure I could sell more if I accepted them but just dont want the worry of them got enough anyway. I seldom ever look at ebay anymore since every item says paypal only because I heard but not sure, that ebay owns paypal. If so Just another way of making money besides their reg. commission. But most usually you can email the seller and ask them and they will take a money order or cashiers check. Everything anymore is just another money gimmick and I just dont like fooling with any of them.

banjo-joe - Posted - 03/18/2010:  06:50:12

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Maybe, I didn't get the question across, the correct way?

I fully understand PayPal, and fees associated, for selling something.
I do it all the time.

My question is, from the other end of the deal, I am the buyer...,

What is a Buyers Fee? I have used Paypal many times to buy, and I have
never had to pay a fee for buying.

gottasmilealot - Posted - 03/18/2010:  06:58:35

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It's free for buyers, but what the seller is saying is that they'll accept Paypal if you pay the fee charged to them by Paypal. They feel that they're doing you a favor by accepting Paypal, so they shouldn't get less for the item to meet your needs as the buyer, as they could always sell it to someone else not using the Paypal system and get the full selling price.

On thing to remember is that from the seller's position, if the buyer purchases with a credit card rather than by using a bank cash transfer from an account, it costs the seller more in fees. A seller's profit can be eaten up by the Ebay listing & selling fees and Paypal fees. The good thing is that it allows a buyer to tie up and item and pay by credit card without outlaying much money, but the seller pays higher fees. Ebay is a great worldwide exposure marketplace, but you pay for that dearly sometimes as a seller.

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Edited by - gottasmilealot on 03/18/2010 07:07:06

Pepper Laing - Posted - 03/18/2010:  07:01:27

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I don`t see why everyone gets all up tight about fees charged by e-bay/ pay pal. It`s a service a business, just like a bank or a credit card, why wouldn`t they charge a fee, don`t use the service if you don`t want to pay the fee. If you don`t wanna pay interest to a bank don`t borrow money, if you don`t want to pay interest on a credit card cut it up. Buyers fee? Are you saying that pay pal charges a buyers fee? I think it`s just the seller charging it to re-coup the fees charged to him for using the "service" may be they do too tho.

rupickin5 - Posted - 03/18/2010:  07:07:16

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As a buyer...I like the ease of using PayPal. If a seller requests alternative method of payment, I respect their desire to avoid giving eBay another 3% on top of their regular fees. I don't have a problem paying eBay their regular fees to post a listing and, hopefully sell it. On the other hand, when I'm selling an item that's less than...let's say $500-600 bucks...I'm OK w/ absorbing the extra 3% PayPal...but if I"m selling a vintage guitar; banjo; amplifier or any item of significant value I greatly prefer that the transaction is done w/o the extra PayPal fees. If I sold a $20K custom color pre-CBS Strat in near-mint condition...I'm not happy to give eBay (they did purchase & own PayPal...smart move on their part) an extra $600...call me old-fashioned.
Brian

banjo-joe - Posted - 03/18/2010:  07:09:16

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ok, thanks,,, I am good to go now!!!

I don't have any problems paying fees that are legitimate
to the service.

This, was something I was not familiar with..., and I just found
out, this is not a legit paypal fee...

this is something the sellers, is doing outside of the paypal services,
they are trying to recoop the fees they incur, by accepting Paypal.

As a buyer, it is easy for me, I can pay right from my keyboard,,,,it is
a 18 mile round trip to the Post Office for a M.O., and then it cost me
to buy it.!!

I am satisified.....thx.

banjoez - Posted - 03/18/2010:  07:28:47

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Between eBay fees, PayPal fees and ridiculous shipping costs it is getting tough to determine your true selling price anymore. I sold a high value banjo recently and went to "The UPS Store" to ship it where I was told they charge the regular UPS charges as determined online. I charged my buyer based on this. I get to the store and magically the price was 33% more to ship. I asked why was it so much more with the exact same configuration as I did online and was told that they do charge the same basic rate as UPS but any additional service such as insurance, tracking, signature, etc, etc they have their OWN pricing structure (read ridiculously inflated). Holy crap.....if you use these services be sure to add at least 33% on top of the online configurator. I had to eat the extra costs. I have learned my lesson and will no longer use these places......just drop it off at a customer service counter at a terminal if you have one.

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Edited by - banjoez on 03/18/2010 07:49:45

bikebum - Posted - 03/18/2010:  07:36:02

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Back in the Dark Ages when I was growing up, I used to see 'Discount For Cash' ads. I haven't seen anything like that for a long time. I think I'd be tempted to advertise something with different prices.
One price for PayPal, a different price for a different method of payment. Kind of a 'discount for cash' method.

wrentree - Posted - 03/18/2010:  07:49:12

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Paypal is used as an escrow account. It makes it safe for you to pay for something and get what you pay for. I won a bid for some mic clips one time and didn't get them. I went back to paypal and filed a claim and got my money back from them. Worth it? I guess it depends on how you look at it.

Hankulator - Posted - 03/18/2010:  08:32:27

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rentree is right paypal is there mainly to protect the buyer. because if you send a cashiers check and you don't get the product what can you do. the cost i can't stand is the shipping, especially if you have a ups store pack it and ship it. with an item like a banjo the cost can become ridiculous. remember the stores are privately owned so they have to add their profit on top of the ups charge.

5stringpicker2 - Posted - 03/18/2010:  09:56:06

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Shoot, Just add the extra 3% or what ever you want. the buyer doesn't know he/she is paying it any way. I was in the produce business for many years and I always added 10% to cover cost of gas and such. customer never knew, I surly didn't advertise Customers pays cost of gas and such please add 10%

Same if I sell something, If I want $300 for it I set the price at $500 and let the buyer talk me down to my price. Who knows he/she might pay $400 if so I made $100 extra.

Just add the cost and let them pay it. they will never know unless you tell them.

(I )===='---<::)

Bill Rogers - Posted - 03/18/2010:  10:19:06

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It's no different than charging for shipping. I think no buyer expects free shipping, but big sellers who get discount shipping rate often do ship free. The little guy has to charge for shipping, else lose money. Some choose to do the same with eBay & PayPal fees. It's no different, really. I think Terry has it right--just add your costs into the asking price. As for me, I don't use eBay any more and never have used PayPal because as a seller, they don't protect me from the buyer abuses I've seen.

ltjgcag - Posted - 03/18/2010:  10:46:20

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I've both bought and sold on E-Bay and other venues. Buyers know there is a 3% charge on PayPal and with credit cards which can take eve more. So why broadcast it as a seller? Personally, when I see a seller wants to tack on additional fees, it just tells me they are not willing to negotiate. And I stay away from sellers like that, as it tells me they MAY be just in it for the buck. Which makes me question the product. As it was 10-20-100 years ago - Buyer Beware! Deal with someone willing to deal with you.

banjoez - Posted - 03/18/2010:  10:58:23

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Aren't we all in it "for the buck"? I mean, we sell things to get money.

ltjgcag - Posted - 03/18/2010:  11:13:27

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Yes, we are all in it "for the buck", but why deal with someone that gives the appearance of being greedy? Just my opinion and way of doing business, 5stringpicker2 said it well - just bump the price up a little and then come down a bit. Everyone happy, and you don't take the chance of turning someone off. I sold an Ome hear several years back and paid for the shipping, and told the buyer I would return his funds if he didn't like it. As a seller, I took the chance. That's business. p.s. I donated 2% to the BHO for the privelege of using the venue. Are ALL the other sellers here that honest?

mrbook - Posted - 03/18/2010:  11:59:01

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It's a cost of doing business, and 3% to Paypal is often cheaper than a credit card account, with monthly charges in addition to transaction charges. At one time it was illegal to charge extra for using credit cards, but the laws have probably changed - that's why businesses offered a discount for cash. I price items I sell to make a reasonable profit, but also to cover those charges if I can. I have not paid anyone a surcharge to use Paypal, and usually have no trouble finding someone who doesn't charge extra. When you are in the business of selling things you find that there are a lot of expenses and fees that eat a little bit here and there out of your profit, so you have to plan accordingly to make sure something is left for you. Complaining about it to your customers and demanding that they pay it can hurt your business. Cash is always nice, too.

ltjgcag - Posted - 03/18/2010:  15:31:09

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quote:

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Originally posted by mrbook

It's a cost of doing business, and 3% to Paypal is often cheaper than a credit card account, with monthly charges in addition to transaction charges. At one time it was illegal to charge extra for using credit cards, but the laws have probably changed - that's why businesses offered a discount for cash. I price items I sell to make a reasonable profit, but also to cover those charges if I can. I have not paid anyone a surcharge to use Paypal, and usually have no trouble finding someone who doesn't charge extra. When you are in the business of selling things you find that there are a lot of expenses and fees that eat a little bit here and there out of your profit, so you have to plan accordingly to make sure something is left for you. Complaining about it to your customers and demanding that they pay it can hurt your business. Cash is always nice, too.

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Cash is king! And so was Jonny Cash!

biscuit joiner - Posted - 03/18/2010:  16:11:40

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quote:

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Originally posted by mrbook

It's a cost of doing business, and 3% to Paypal is often cheaper than a credit card account, with monthly charges in addition to transaction charges. At one time it was illegal to charge extra for using credit cards, but the laws have probably changed - that's why businesses offered a discount for cash. I price items I sell to make a reasonable profit, but also to cover those charges if I can. I have not paid anyone a surcharge to use Paypal, and usually have no trouble finding someone who doesn't charge extra. When you are in the business of selling things you find that there are a lot of expenses and fees that eat a little bit here and there out of your profit, so you have to plan accordingly to make sure something is left for you. Complaining about it to your customers and demanding that they pay it can hurt your business. Cash is always nice, too.

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According to PayPal, it's against your agreement with them to charge a higher price to someone using their service.

For regular credit cards, it varies by state. Here in California, it is illegal to have a different price for cash & credit.

That's not to say that I think that's right, or that this law/agreement isn't violated constantly and credit cards/PayPal seem to look the other way. Just reporting the facts as I understand them.

Guns and Banjos - Posted - 03/19/2010:  04:05:37

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Speaking as a seller, if I have a Banjo for sale for $3000.00, and you decide to buy it and want to use PayPal, if you send me $3000.00 thru PayPal, that's not the amount that I get.
As a buyer I understand that I have to pay that extra % for using PayPal .
To me the only advantage of using an instant payment like PayPal is that the seller instantly has his money and hopefully will return the favor by immediately shipping, which isn't always the case.
If a seller tells you up front that using PayPal will cost you extra %%, I or he is just bein upfront honest with you, we don't get that % ,it's what PayPal charges for using their services.
My 2 cents worth for free
Clyde
Guns & Banjo Shop