Based on the writings of Rav Chaim Kohn, שליט''א

PROPER PRICING #3

Q: Can I offer net-30 terms with a 2% discount for prompt payment?

A: This arrangement seems parallel to the two-tier pricing for cash/credit discussed in our last newsletter, since there is a lower price for prompt payment, and a higher price for payment in 30 days. Thus, according to most authorities, this payment arrangement is considered a form of ribbis, interest, and allowed only by means of a heter iska. [According to the Chochmas Adam, however, this arrangement is permissible, since the net-30 price reflects the true market price.] It is also permissible to provide the 2% discount in the following manner: The sale should be concluded and a single price set with net-30 terms alone. After the goods are already handed over, or the transaction is consummated with a kinyan, only then may the invoice be sent allowing a 2% discount for prompt payment. (Y.D. 173:3)

PROPER PRICING #4

Q: If the vendor and customer were in dispute over a price, and the goods were delivered or the service provided before settling, how much is owed?

A: If the vendor and customer were still disputing the price, it is considered as if the sale or service was done with no price-quote at all. In this case, we follow the minhag hamedina – the going rate. If the rate varies, generally the vendor has the weaker hand.

However, if the customer at first rejected the sale because the price was too high, or the vendor rejected it because the offer was too low, and later they got together and carried through the sale anyway without an explicit agreement, whoever took the initiative to carry through is considered as acquiescing to the other party. Thus, if the customer called the vendor and told him to deliver the goods, he must pay the higher price demanded. If the vendor called the customer to say that he is sending the goods, he is entitled only to the lower price offered. (C.M. 221:1 and Pischei Choshen Sechirus 8:5)