Businesses In Israel charge more for convenience

Businesses of all types should be concentrating on how to make their customers life easier and for less money. If they can fous on these two things while maintaining their profit margins then that will lead to success.

I believe I wrote about this in another post on buying Tuna in Israel and how they charged you more money for a package of four cans then if you bought four separate cans. And I remember hearing that if you buy in bulk in Israel you end up paying more money. One of the reasons behind this is that if you buy in bulk then you may come shopping less often which means less impulse buying. The stores want you to keep coming back.

Seems like most companies in Israel charge you for convenience. If you want something delivered it will cost you money. If you buy in bulk it will cost you money. If you want to private park it will cost you money.

Here is an example that I saw today. I was at ACE today helping out my cousin who just made Aliyah and I was a bit thirsty but did not have any cash on me. I saw the soda machine took credit cards and I was thinking about spending the 7.5 NIS for a bottle of ice tea (very expensive in it’s own right) and then I saw that they would charge me .60 more if I used my credit card briging up the price of a small bottle of ice tea to 8.10 NIS.

Now I understand that it costs more to the vendor when you get a credit card order instead of cash, but you are already paying a lot for the drink. And .60 is about 8% higher for the product and it’s only costing them 3% or less for the credit card charge. I know in the United States it is illegal to charge more for paying by credit card, but I guess that law does not yet exist in Israel.

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