Rewards programs cause higher prices just like “free delivery” or “no questions asked returns for 6 months” does.
It’s just another cost of business. Sometimes you bump up the price to account for it, sometimes you take the hit in profit in exchange for more volume hand more profit).
Very rarely do businesses do “cost plus” pricing. They usually charge what they can.
Which is why prices are sticky.
For the businesses that price based on cost alone they usually reject credit cards all together. Long ago I shopped at a computer parts store that had the best prices and they were all focused on volume - no further discounts, no credit cards, no free delivery.
It’s just another cost of business. Sometimes you bump up the price to account for it, sometimes you take the hit in profit in exchange for more volume hand more profit).
Very rarely do businesses do “cost plus” pricing. They usually charge what they can.
Which is why prices are sticky.
For the businesses that price based on cost alone they usually reject credit cards all together. Long ago I shopped at a computer parts store that had the best prices and they were all focused on volume - no further discounts, no credit cards, no free delivery.