Single Out Cash Payment

People feel less pain paying by credit card than cash. They’re likely to purchase more and accept somewhat higher prices for items they desire.
     Still, Duke University and University of North Carolina-Chapel Hill researchers found certain sorts of value to retailers in that pain of cash payment, benefits which go beyond you avoiding the bank fee from credit card transactions: Shoppers who pay with cash instead of a credit card subsequently feel more emotionally connected to the item they purchase and to the store where they made the purchase. Their interest in alternative items and sources of supply decreases, so the potential for repeat purchases increases. And your cash customers are a little more likely than your credit card payers to recommend you to friends and family.
     One implication of all this is that when a customer has decided on a single purchase and, in your judgment, is unlikely to purchase more during that visit, encourage cash payment.
     The idea of a bit of pain leading to increased commitment by purchasers is not new in shopper psychology research. And in all of it, the issue is whether the pain is so substantial that it discourages the shopper from becoming a purchaser in the first place. Control for this and also for your own discomfort. Unlike with credit card transactions, cash payments often require you to give change. 
     Well, since it’s a dirty bother anyway, consider the advantages of doing it with dirty money. Actually, dirty money change hedges your bets in case you were wrong and the customer might make further purchases. Researchers at Canada’s University of Guelph and University of Winnipeg found that when people are given their change in bills looking worn out, the people want to get rid of the bills quickly. This is the perfect time for you, the retailer, to promptly offer the person another item to buy from you, before the worn-out bills get hidden in the wallet, purse, or pocket.
     To enhance the effect, give change for cash purchases using bills of varied denominations. Researchers at University of Iowa found that a shopper with a single $100 bill was less likely to make purchases than a shopper with five $20 bills. The increased bulk of five bills makes it subconsciously feel like greater wealth than a single bill does. More than this, consumers have a measurable resistance to breaking a large bill.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more: 
Inject Spending Power into Shoppers’ Pockets
Rough Up Customers a Bit
Clean Money, Cleaner Sale
Arouse Money Thoughts for Quicker Decisions