Methods of Payment
- Paying in cash is still a basic way of paying.
- Credit card is a type of payment card that is not linked to a bank account. It is more like a type of credit the cardholder uses up to the given limit. Used money has to be paid back with additional fees. They can easily start a debt spiral, so it is important to use them with responsibility. They are used for various payments because it is easy and accepted almost all over the world.
- Debit cards are popular and convenient. A debit card is a payment card that transfer money from cardholder’s bank account when used as payment. They were introduced in the 1980s to reduce the usage of cheques because they are more expensive for banks.
- Paying by cheque is still quite popular in the UK, especially among older people.
- Digital payment is quickly becoming a popular way of payment. Most popular apps are PayPal, Apple Pay, Amazon Pay and Google Pay.
Methods of payment related to the type of establishment or completed purchase
- Low prices and small purchases are usually paid in cash. Cash is also a common method of payment on street or flea markets.
- Most shops offer to pay by credit or debit cards.
- The instalment buying is used for expensive goods like cars, furniture or consumer electronics. It is a method in which a thing is bought over a period of time but can be used is immediately.
Times of big sales
- Boxing day is on the 26th of December and is known as the shopping holiday. Many shops have special sales and big discounts. Some shops open even at 5 am and offer doorbuster discounts (early limited-time discounts mostly for supplies in the limited number). Very popular are also loss leaders discounts (product is sold at a price below its market value, so people will have money to buy other products). Some of the shops will start their sales before Boxing Day.
- Black Friday is on Friday before Thanksgiving in November. It is originally a tradition coming from the USA but it is becoming more popular with UK based retail. It offers very big discounts.
Conventions in the way of Setting Prices
- Price is not just a number on the product or service. The effective designing setting of a pricing strategy is important for the profit. Determining the demand, estimating the cost and analyzing competitor costs, prices, offers and possible reactions are important elements that should be considered when setting prices for the products.
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