Anonymous asked in Business & FinanceCorporations · 6 months ago

Why do most store company policies have trust issues?

They dont like Negotiating with their customers anymore or Accepts IOUs. Its gotta be a trust issue. If the person makes an IOU deal i dont see what effect it would have on the employees. If the customer promises an IOU and doesnt follow up on it they can simply have him/her arrested. And the customer would have to pay for the item they got for free by court order. So either way the store will get their money back for the item. So I dont understand why they too stubborn to accept IOUs

6 Answers

  • 6 months ago

    Waste of time to track someone and arrest them...this only works in small towns where everyone knows everyone and people honor their yes...its a trust issue.

  • 6 months ago

    It is not a trust issues. Credit card companies basically offers IOUs & look at what's going on in that area...

    Most people will not pay the debt & it will lead to bigger issues. You know this already

  • 6 months ago

    Business people seek a solid foundation SOMEWHERE. If they are fronted their goods and they front their goods to their clients.. then the person who fronted the business their goods will appropriate to collect. Supplier wins. Unless they were fronted as well. The business that gives the IOU deal often does NOT ever collect no matter what the courts have to say. People lose in civil courts all the time who never pay up at all.

    Seven to three generations ago, many businesses DID accept IOU's or kept accounts on credit that they were the sole backers of. But time taught that people write bad checks, they stiff on their bills, they cheat their neighbors and they are sue happy to get without giving.

    The problem with your theory is your assumption that the store would get their money back. That actually usually does not happen. Bounced checks, stolen checks.... most banks don't prosecute and don't much care because it's become so common that they do not "cover" them and the store eats the loss. Litigation is expensive. Often not worth it.

  • A.J.
    Lv 7
    6 months ago

    In the USA, financing is separate from the store's business. Whether it is outside financing or a subsidiary, financing is avoided by the store itself and left to people to run that business. Credit cards are financing also.

    About negotiating prices, there are coupons, sales, and rebates around. Stores don't want employees setting prices. It is too easy to steal from the store.

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  • 6 months ago

    Why would a business wait for its money? Inflation makes the value of money drop. The longer you wait, the more it drops. With inflation of 2%, that $300 television you gave the store your IOU for is worth $294 if you pay a year later. They'll be happy to let you buy the TV on credit and charge you interest - of a lot more than 2%. They have to pay their suppliers, employees, taxes and a whole lot of other things.

    It's not a trust issue. It's a business issue. Anyone that accepts an IOU in these times is a fool.

  • 6 months ago

    Let's see:

    In your world, the company can accept IOUs and:

    1. waste police officers time if they don't pay

    2. pay to file a court case

    3. spend time in court for the court case

    4. still not receive the money if the person doesn't have any money to pay.

    In my world - people buy what they can afford, the store has their money. Everyone is happy.

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