Is this the end of paying for goods in cash and haggling? 21



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“Pay less, pay cash” used to be their slogan but now, The Good Guys will have to have a new one, plus a new ad.

One of the more catchy ads of the last 15 years was the ‘Good, good, good Guys, pay cash and we’ll slash the prices”, set to the tune of ‘Good Vibrations’. But it isn’t because their ad was in need of a refresher, it was because cash transactions are dead.

According to The Good Guys CEO Michael Ford, “Pay less pay cash is in the noose now”, and the popular electronic retailer is dropping their best known clincher.

“It played a very significant role in building the brand but we now have to move on to recognise we’re in a fully digitalised world and the customer has all the power in their hands”, Mr Ford admitted.

The advent of online shopping has meant that customers research products and prices online so they can be matched to an even cheaper price, so the expectation that if they pay cash and pay even less is not profitable.

Research from Australian Payments Clearing Association has shown cash use has declined from almost 70 per cent of transactions to 47 per cent since 2007.

“Customers have so many other ways to pay and our online prices are the same as [prices] in store,” he said. “The power has shifted from the retailer to the consumer and the consumer has become digitally empowered”.

Cash discounts are now seeming like a thing of the past, when we used to have a habit of getting cash just to pay. We were under the impression that we were saving the company money by paying in full on the day of purchase however it is not to be any more.

So is this a good or bad thing for customers?

Mr Ford told Fairfax, “We’re not just selling boxes any more –  we have to sell solutions. We try to engage with customers beyond the fact they’ve just bought a television or a fridge and gain a larger share of their wallet in the future”.

Good to know.

To explain it further, electronics retailers don’t have a lot of room to move in their margins (i.e. a $1000 TV might cost the company $900 per unit), so as they stay competitive with other companies in the sector, they are already showing the lowest price. This means when a customer with a wad of cash comes in expecting a lower price, the retailer will lose a customer if they don’t oblige, or lose money if they do.


We want to know today, should we still get rewarded for having the money upfront? Do you still pay cash for goods? Or do you only use plastic?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. It costs me $80 in fuel to get to the nearest Good Guys store so a cash discount wouldn’t make it any cheaper for me.

  2. Cheaper for cash to continue. I have shopped at GoodGuys for more than 20 years but will stop if things change.

  3. We used to pay cash,but now feel too insecure to have a thousand dollar wad in the pocket. But we have been given reductions for the asking even paying by card.

  4. Many years ago when I first shopped at the Good Guys, they assured me that payment by credit card was considered ‘cash’.
    I got their price for a TV, walked to 3 other near suppliers getting lower prices each time then went back to GG.
    They then beat the lowest price by another $10.
    On another occasion we bought an air conditioner for a very cheap price beaten down by offering a certain amount, saying that was all we could afford.
    While waiting for it to be available at the back door, we spoke to another couple who bought the same item but for $200 more.
    They then phoned the front office, told our story and were also given the same price as we got.
    The GG are good to deal with!

  5. Went to renew my sydney morning herald digital newspaper subscription tonight and there was no discount for paying the whole years paper in one upfront payment up against 12 monthly payments by direct debit—– go figure !!!!

    1 REPLY
    • My problem is the dear boss loves the Fairfax left wing digital rag and the only way I can changeover to a left wing news limited rag is to file for divorce —- not a good financial idea in retirement !!!!!

  6. I am lucky to have three stores in my area, and I go where I get the best deal; sometimes it is The Good Guys, sometimes Harvey Norman and sometimes Retravision.

  7. I will be thinking twice about purchasing at goodguys if there is no cash bonus incentive might as well pay the same price at any retailer

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