Originally Posted by ELS Landscape
I heard at one time Sears made more money on their charge card than they did on the merchandise. ..............
That is true, throughout the 80's and early 90's, the sears stores actually lost money being open. Where they turned there profit was from the finance charges on the items being purchased. That is why Sears cards used to be one of the easiest cards to get, and often the first cards people would qualify for. During that time, it was known that if every card holding began paying off their accounts so that they would not have monthy finance charges, sears would actually have to close their doors and file bankruptcy. This is a very common case study in many finance and accounting texts.
We have a number of people who ask us about financing. Many people seetle on using a no/low interest card or one with great rewards. We have also partnered with a credit union who we stear clients to for financing their projects. In return we get a small percentage of the APR. Not to many people have gone this route, it would be nice if more did, the bank puts the money in our account on time, and the quarterly checks from the APR are nice too.