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10/11/23
21:06
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Originally posted by Treba:
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I still dont know how you do not understand this concept... Its to do with assured monthly payments and timeframes. You comments infer smaller merchants. A few points. For a mum/dad coffee shop not getting paid this month it may be not the greatest. But its only a small portion of payments and not a merchant that would even use splitit. (not high order value) (Or is Splitit so good that 100% of users will use it which is therefore against your negative narative...but thats a different argument. Constant, forecastable and increasing future cashflow is what big companies want. Reportedly Splitit adds 10-20% increase in sales overall. Here is the really dumb bits.... - After 1 month of a merchant using Splitit can they put down an exact figure on the next months of cashflow from splitit repayments? (monthly receivables) - After a few months if a business sees that a constant 15% of transactions go through splitit each month can a business use that 15% to forecast what will go through splitit in the future? (it becomes very predictable seasonally like all consumer spending) - After 4 months (shortest term) do the repayments from the month 1 users offset the new splitit users payments not received??? (Your comments suggest you totally ignore timeframes and new user payments?) Therefore after a short period business cashflow becomes very normalised and forecastable but has increased 20% overall. You are clearly missing that under the "paid later" model it becomes a constant cashflow in a short period with new users. It is aslo the cheapest model for Splitit and cheapest for the merchant (who after the first 4 months no longer are waiting for cashflow as they are being paid by the plans in Month 1, Month 2, Month 3...to make up the 100% difference plus the additional 20% the consumer splurged) Is this not a win-win-win for all? Why are major software companies all turning to monthly subscription fees despite the clear short term dip in revenues that results in? This is not an argument about if Splitit can excetute or SP. This is purely how the model is geared to work. Enlighten us with that business degree?
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Does not take a business degree to understand that if you set out to pay a merchant later, on the drip feed, and charge them a few for the pleasure, then you are a name that you called me LMAO