Bitcoin Forum
December 04, 2016, 10:32:20 PM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: « 1 2 3 [4]  All
  Print  
Author Topic: Why should I, a vendor, accept bitcoins?  (Read 4471 times)
BombaUcigasa
Legendary
*
Offline Offline

Activity: 1414



View Profile
June 15, 2011, 07:11:52 PM
 #61

why would a customer purchase a product using bitcoins when they can use their local currency to purchase that same product at a lower price?
Maybe they should use local currency for local trades? And a global currency for global trades? That would be like the purpose of bitcoin, to allow global instant forex free transactions. Locally there are not many uses. But we are talking about the situations where bitcoin applies.
1480890741
Hero Member
*
Offline Offline

Posts: 1480890741

View Profile Personal Message (Offline)

Ignore
1480890741
Reply with quote  #2

1480890741
Report to moderator
1480890741
Hero Member
*
Offline Offline

Posts: 1480890741

View Profile Personal Message (Offline)

Ignore
1480890741
Reply with quote  #2

1480890741
Report to moderator
1480890741
Hero Member
*
Offline Offline

Posts: 1480890741

View Profile Personal Message (Offline)

Ignore
1480890741
Reply with quote  #2

1480890741
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480890741
Hero Member
*
Offline Offline

Posts: 1480890741

View Profile Personal Message (Offline)

Ignore
1480890741
Reply with quote  #2

1480890741
Report to moderator
1480890741
Hero Member
*
Offline Offline

Posts: 1480890741

View Profile Personal Message (Offline)

Ignore
1480890741
Reply with quote  #2

1480890741
Report to moderator
1480890741
Hero Member
*
Offline Offline

Posts: 1480890741

View Profile Personal Message (Offline)

Ignore
1480890741
Reply with quote  #2

1480890741
Report to moderator
Meatpile
Sr. Member
****
Offline Offline

Activity: 277


View Profile
June 15, 2011, 07:19:06 PM
 #62

Am I reading this right?  Are you suggesting that a business should charge it's customers a 20% price premium for using bitcoins?  Why would any customer agree to that?
What, are you saying that vendors sell their products and services at 0% profit and don't ask for a penny more than what they need? Or they don't add insurance percentages, or forex percentages when dealing with external currencies, or card processing services that vary in the 2-5% range? Color me impressed.

Good question. If you find the answer you are in business. You could even surpass the masters like... Apple. 20% too big for you, go to another country and buy anything imported from your country? Don't sell, don't buy, use a smaller figure. Why are you thinking it's impossible to be flexible?

That's a lot of "what ifs", all of which imply taking time away from actually running a business in order to spend it in the BTC currency markets.  Small businesses in particular lack the time/inclination/expertise to get involved in BTC trading on the exchanges (just to start accepting what is in effect a foreign currency that lacks any hedging instruments).
Don't trade in bitcoins if you don't have the time to manage/understand bitcoins. Seriously, NOT THAT HARD. I don't trade in Turkish lira, because I don't have time to learn and manage my Turkish bank accounts. It's that easy.

That is some VERY good advice.    Smiley
Yes, cashing in as quickly as possible even if working against yourself is good advice. You're a cheapo!


You don't understand what people are saying here. Noone is saying anything about profit margins, they are saying that people arent going to want to pay 20% more than they would pay with government currency when its just as easy to use the currency they already have in their hands.

So the choice is to pay $5USD for something, or pay $7USD to buy bitcoins, then lose a few dollars on transaction fees and exchange fees and "seller inflation" because he has no idea how stable the currency is and then get the same product.

frutza
Newbie
*
Offline Offline

Activity: 14


View Profile
June 15, 2011, 08:38:56 PM
 #63

Main reasons for accepting bitcoin are lower prices for payment processing and irreversible transactions. Downside is converting them to USD/EUR/etc. which is sometimes (bottom-line!) more expensive than you would think. Ideally, you would have both your payables and receivables in bitcoins - but we're not there yet  Wink
BombaUcigasa
Legendary
*
Offline Offline

Activity: 1414



View Profile
June 15, 2011, 08:42:07 PM
 #64

You don't understand what people are saying here. Noone is saying anything about profit margins, they are saying that people arent going to want to pay 20% more than they would pay with government currency when its just as easy to use the currency they already have in their hands.

So the choice is to pay $5USD for something, or pay $7USD to buy bitcoins, then lose a few dollars on transaction fees and exchange fees and "seller inflation" because he has no idea how stable the currency is and then get the same product.


You are talking about a specific scenario: everyone let's trade in bitcoins because it's the new hipster thing to do!

While the situation is as follows: Hey, I have some bitcoins anyway and need to spend them, what do you have?

I'm not advocating for everyone to effectively trade in dollars but using bitcoins, I think we can all go B2B and trade the bitcoins among ourselves. If all vendors accept bitcoins, and some vendors are clients to other vendors, how silly would it be to convert all bitcoins into dollars, then dollars into bitcoin as a client, then buy stuff, then the vendor converts the bitcoin into dollars.

Also, transaction parity aside, which can work for you or against you in half the situations respectively, the process of paying for a 100$ item is as follows:
- convert some dollars to bitcoin on mtgox through dwolla for example (supposedly 101$, you give 0.25$ to dwolla-mtgox transfers and 0.6% to mtgox (so just below 1$)
- you pay the merchant 5 bitcoins (example) for his item listed in bitcoins
- the merchant has 5 bitcoins, converts them to dollars (0.6%) and withdraws them (another 0.25$), effectively losing a 2% tax on the whole value/benefit transaction.

This might look ugly on a local shop (where you can use dollars), but consider the implications of international trades, where you pay a receiving fee if you use paypal, an obligatory forex fee (2% or more) and the client's paypal fee, and your withdrawal fee. Or in the case of CC processing, you pay a 2-5% fee on received payments.

Also, let's not forget:
- you can maintain a specific sum of liquid funds in BTC and USD and only exchange when needed
- you can declare the item sold for a lower profit margin and pocket the rest because you don't declare taxes on the BTC transactions
- you can wait 1-2-3 days and place exchange orders at beneficial rates (the btc can vary up to 5% a day, you can add a small bonus like this, not that hard to do)
- other vendors want your bitcoins
BombaUcigasa
Legendary
*
Offline Offline

Activity: 1414



View Profile
June 15, 2011, 08:49:54 PM
 #65

Be that as it may, I'm pretty sure nothing in your response answers the question "why would a customer purchase a product using bitcoins when they can use their local currency to purchase that same product at a lower price?"  Believe it or not, it is a natural question to ask someone (you, apparently) who asserts that adding a 20% "buffer" to the BTC price of a vendor's goods is a rational approach for enabling the vendor to start accepting bitcoins.
Why must you insist that all trades can be made in a "local" currency? Anyway, I heard there was a site called SilkRoad. Good luck trading "local currency" with that.

If some vendor adds 20% on their product in times of price distress, I don't mind. Some other people have posted they don't mind either. Let's let the vendors decide on this.
Meatpile
Sr. Member
****
Offline Offline

Activity: 277


View Profile
June 18, 2011, 10:05:22 PM
 #66

Bomba you aren't going to convince any legitimate businesses to adopt bitcoin because of their ability to trade on black markets, or commit tax fraud.
goodlord666
Sr. Member
****
Offline Offline

Activity: 434


100%


View Profile
June 18, 2011, 11:10:56 PM
 #67

You might run a test product that is fully based on BTC and does not require converting BTC to other currencies for running expenses.

Regardless of changes in the BTC-to-USD conversion rates, each one of your BTC will always be at the value of 1 BTC, plus steadily increasing as compared to other currencies.

At later stages you can slowly switch to cooperate with businesses also accepting BTC for their services.

Good luck!

BombaUcigasa
Legendary
*
Offline Offline

Activity: 1414



View Profile
June 18, 2011, 11:38:39 PM
 #68

Bomba you aren't going to convince any legitimate businesses to adopt bitcoin because of their ability to trade on black markets, or commit tax fraud.
Yeah I know, the people that trade on black markets and commit tax fraud around these places will continue to do it in fiat currencies, you're right...

It's a good thing the developers are working to get bitcoin regulated by the US government, right?
Michael
Newbie
*
Offline Offline

Activity: 21


View Profile WWW
June 19, 2011, 06:13:46 PM
 #69

It was briefly mentioned that the way to counteract volatility is to use the average exchange rate over the last few days. I would go even further and take the 30 day average.

But above all, I would say, be fair to your customers. You don't need to rip them off just because they want to use a different currency. Indeed, bitcoin might well be something that you could offer a "discount" for using. Because of the deflationary nature of bitcoins, you'll make up the "lose" if you keep hold of them.

If you are worried, just don't sell everything for bitcoins, or only sell a certain amount of each product each month for bitcoin. That'll let you work it out, and if it's all good, then switch to bitcoins for everything.

Web development and stuff, for bitcoin - http://next-nexus.info/ (http://next-nexus.info/)
Also I exist on the Wiki: http://en.bitcoin.it/wiki/User_talk:Michael
Pages: « 1 2 3 [4]  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!