As I meet with my professional network, I sometimes worry for them and their business. I can’t help it. I grew up in a family business and I know the struggles with overhead and expenses that just seem to add up. I share with you 3 words that could be adding cost to your business.
When I hear these words, I perk up and listen more carefully, because I want to help. I want you to be on the look-out for these as it pertains to your business or, even your client’s business.
They can mean more than you think they do.
The other day, someone reacted to what one of my client management team members said about over all low rates for credit card and payment processing. They said, “My bank gave me a 1.9% rate and they offered me a 2-year contract with a lease on the equipment; I’ll be fine for a couple of years.”
These 3 words:
Are often casually used in the financial services industry but usually lead to paying more, for less services.
Many banks offer credit card processing as an ancillary service, not as a primary service. They focus on the rate as a single line item percentage and not the overall cost of the service. Then, they add in fees and charges that make the overall cost much, much higher than the quoted percentage*. Then they lock their customers into a contract, which keeps a customer from leaving even after they realize what they are paying – and even if that isn’t the case, the lease is definitely a more expensive option for equipment than buying it outright.
1. TransAct is not a bank, we are a financial services provider with a goal of helping our clients process their revenues and we focus on the overall least cost, rather than just offering a discount rate.
2. We never mandate a contract. If our clients do not see value in what we offer, they are free to choose another option, often asking us for a re-evaluation (which typically shows them they are still paying less than a new offer.)
3. Finally, if a client asks us about a lease, we share with them the benefits of buying equipment outright – showing them that even if they have to borrow funds, it is less expensive overall.
We value our relationships. We look forward to seeing our network each and every week. We enjoy working with our clients, year over year, and seek to help them maintain a healthy business, grow and be an asset to their community. We will continue to share information and help to educate our associates, because we want to help, even if you are not our client.
~ May Ann