Are you getting more and paying less?
Okay, let me get straight to the point here and clarify what I mean by the title.
Obviously, and I know this comes as no surprise to anyone reading this, we are living in a very unusual time right now. Covid 19 has affected our lives in ways that we never imagined would happen. We cannot gather in large groups at sports venues, funerals for lost loved ones, or even go to church. Face masks of all shapes, colors and sizes are a new part of our appeal when we leave the house. We can’t just get in the car and head to our favorite restaurant, gym, or movie theater, without limitations and guidelines. We are learning to adapt, in various ways and, according to some of the so-called experts, that will be for some time.
All of this has had a great impact on companies of all kinds. Many, unfortunately, had to close their doors after having been in successful business for many years. Some have been able to reopen, but with reduced staff, fewer customers, and worst of all, far less revenue. Traders are suffering from all angles and are looking for remedies to stand their ground through it all, hoping to see glory days once again.
So what can be done? As consumers, we can step up if we have the financial capacity to do so and try to spend something with your favorite merchants. Whether it’s ordering food to go or having food delivered, or some retail purchases that you can order online and pick up at the curb, just do what you can to help them.
As a business owner, what can you do to help stop the lower flow of income in your bank account? Actually, there are probably quite a few things you can consider to lower the cost of the products offered or maybe even take a look at the services you can provide. That is mainly what this article is about today and what I am writing about, in relation to the paid services that you offer to your customers.
Let’s face it, as a trader, you probably have a little more free time than when your days were much busier. One of the main cost centers of your business has always been, and always will be, to accept plastic as a form of payment in your business. Now would be a good time to examine the payment equipment and services you may be using.
This is the first step that I recommend that you take. Have you ever determined what your Net Effective Rate is for processing services? It’s a simple exercise that really helps you get a better idea of your overall costs, not what you think or tell you are paying. Just take a look at one of your statements and find your total fees for the month. Divide that number by the total sales volume you have and voila, you have your Net Effective Rate. During my two decades in this business, I can’t tell you how many times merchants have been surprised to see what they were actually paying for when all the fees paid for the “privilege” of accepting credit and debit cards in their businesses are taken into consideration.
Okay, now what’s next? Now would also be a good time to check the equipment or POS system you are using. Technology continues to improve at an incredibly fast rate and you may be dealing with older generation material that you don’t need to use.
So what can you do now to help improve your cash flow? Perhaps nothing at all in this part of your business if your current supplier is taking good care of you. I have been in the business services industry for over two decades, which in itself is a miraculous feat. My success is the result of truly caring about my merchants and providing truly transparent pricing and innovative solutions. Maybe it can be of help to you.
Thanks for reading and feel free to share this article with others who may benefit from it.