Originally Posted by Duekster
Besides the 2.7 or 3% you get a $0.25 charge for each transaction.
One dollar per client for weekly charges adds up.
You increased cash flow over profits.
Well yes your right, but consider the following money saving info that accepting credit cards did for us.
1. I get paid weekly by better than half my res customers. I have better cash flow, which leaves me less stressed, not as broke.
2. Those that have signed up for the autopayment, don't spend any money on mailing invoices. That's 68 cents in savings.
3. I don't drive to the bank or the p.o. Box nearly half as often. Because my credit card transactions process and deposit and are enough money to run daily operations, I don't need to check my mail or go to the bank only once per week, on average. How much fuel and time does that save? Ever work all day only to get done when the bank is closed, put the deposit off 1 or 2 days?
4. Data processing....I think I click about 6 buttons, type the word yes, and boom all processed, and the customers account is updated..... Saves at least 10 mins per day in data entry
5. Because cash flow is better I now am able to take advantage of "deals" when they come along. I buy gas 400 gals at a time, when it's cheaper. I buy my fert early when I can get a deal. I also save time and money buying when it's convenient to me because I happen to be in the area.
6. Related to the autopsy customers I now have 100% collection on those customers.
7. Related to monthly payers, I have seen my average collection date move up on average 4 days, also seen a 3% increase in actually collecting money that otherwise would have been a collections agency or lost money, because this gives the customer other options to pay.
8. I have actually sold jobs, won bids. Simply because I took credit cards and the customer needed to use that method of payment, or wanted to earn miles or what ever.
So if you have tons of money laying around I admit I do take a small loss on using the cards, and if I had money laying around maybe I wouldn't. Fact is I don't, this was great for business.
If this isn't a good idea, why do all fast food accept when 6 years ago they didn't? Just look at the studies, yes they loose some money by swipping the card, but they gain so many new customers that otherwise didn't have cash in their pocket to buy the burger