The highly anticipated new Nintendo Switch is about to hit shelves, and if history repeats itself, it will sell out instantly. But there’s something unique about products like this—the price is non-negotiable. Whether you’re a big-box retailer or a small gaming store, Nintendo sets the retail price, and you have to sell at that amount.
Let’s break this down with real numbers. Say the new Nintendo Switch is priced at $349.99. A customer walks in, excited to grab one. If they pay with cash, you get the full $349.99. But if they use a card, suddenly you’re on the hook for processing fees. Assuming an industry-standard rate of 3%, that’s $10.50 straight out of your pocket, reducing your profit on an already locked-in price.
That may not seem like much, but imagine you sell 100 units. That’s $1,050 in fees—gone. Money that could’ve gone toward rent, employee wages, or reinvesting in more stock. And remember, your margin on consoles is already razor-thin since hardware is often a loss leader for retailers.
Now, what if you had an option? What if customers could choose between paying the standard price with cash or ACH, or covering the cost of convenience when they use a card? With dual pricing, your price stays the same, but customers who choose to pay with a card simply cover the processing cost themselves. This keeps your margins intact while still giving buyers the flexibility to pay how they want.
Think about it—Nintendo sets your price. You have no control over that. But you can control whether or not you absorb card fees. The solution isn’t raising prices (since you’re locked in) or eating the fees (which cuts into profits). It’s dual pricing, the ultimate win-win.
Retailers in industries with strict pricing policies—whether it’s gaming, electronics, or even gasoline—need to wake up to this reality. If you’re forced to sell at a fixed price, why should you also be forced to eat the cost of card transactions?
Big retailers already find ways around this. Ever notice how some stores offer a ‘cash discount’ or ‘credit price’? That’s dual pricing in action. It’s time small businesses start doing the same.
So, when the Nintendo Switch flies off shelves at $349.99, make sure you’re keeping every penny of that sale. Let customers decide: pay the standard price with cash or cover the added cost of card convenience. Simple, transparent, and fair.
Want to learn how to implement dual pricing at your business? Let’s talk.
