| |
| |
|
Sales Information |
|
|
|
Letting Them Use Plastic
Obtaining merchant status will help to increase your sales. Consumers are becoming creatures of convenience; when dealing with businesses-large or small-they desire ease of transaction. That most frequently translates into the ability to pay for services rendered or product purchases via credit card. Small businesses are often denied merchant status because they can't prove to the bank that they are good risks. You must establish and demonstrate a track record before a bank or independent sales organization (ISO) will agree to back your business. Even today, some banks also hesitate to provide merchant status to companies without storefronts, to mail order firms or to individuals with a past history of personal or business bankruptcy. Although thankfully, it is getting easier today than it was even 15 to 20 years ago. In this article we will help you to understand the reasons you may not be able to obtain merchant status, so that we can help you find ways to more favorably present yourself and your business as candidates for merchant status. 1. Start with your own bank. When shopping for a merchant account, the first place to stop is your own bank. When banks look at an application, they consider three critical things: the principals, the product and the process. In other words, they need to know about you, what you are selling and how you are selling it. Be sure to take the time to carefully develop your proposal. It can really pay off. Show your bank that you're serious about obtaining merchant status and you take your business very seriously. In spite of your best efforts, the bank may still turn you down. The next step is to approach other banks in your area. If you're still running into roadblocks, there is another option. 2. Investigate ISOs selling on behalf of other banks. ISOs serve as a liaison between banks and merchants. Your odds of getting merchant status from an ISO may be greater than from a bank, but the costs-and risks-may also be greater. Most ISOs are legitimate businesses, but it pays to be wary. The first thing you should ask any service provider is what banks they represent. When considering an ISO, a merchant should know which bank they are working for, and should check with MasterCard and Visa to ensure the ISO is properly registered. Keep in mind that this service you are buying can have a significant impact on the cash flow of your business, and don't be shy about asking for references. A good bank or ISO should provide reliable and trouble-free processing, with responsive customer service whenever you have a problem, all at a fair price. What's fair depends on the risk level of your business and the terms being offered by competing ISOs. Make sure the merchant bankcard provider you choose fully supports you as a merchant with a variety of services, like check guarantee, acceptance of all major credit cards, debit cards, etc. Also make sure they fully support the equipment or software they sell you. If they don't, ask them who does and how much extra this costs. Some programs may be appealing, but require hidden costs for assistance. 3. Clearly understand the costs involved. To better grasp the issue of costs, you must understand how credit card sales are processed. Simply stated, when you conduct a charge transaction, you will receive the cost of that sale, less a previously agreed-upon discount (from two to more than five percent), from the bank or service company. The more stable your business is, the lower your discount rate will be. Fees are a substantial cost: ISOs typically charge fees for minimum activity, if yours doesn't reach a pre-determined amount; fees for each transaction made, above and beyond the two to five percent discount; and fees for processing customer statements. Another cost is that of equipment. Most merchants today use an electronic draft capture terminal to process sales, which you can lease or purchase. It is more economical to purchase the equipment, but your choices will be limited by the ISO you choose. You might be able to purchase a used terminal from your ISO or buy a new or used terminal from another source. Check with your ISO first! If you have a personal computer and a modem, there are several software packages currently on the market that perform authorization and draft capture. Make sure that any software you buy is compatible with the system used by your ISO. 4. Caveat emptor. As with any other business decision, carefully consider your options and shop around. Research the requirements, costs and services of banks and ISOs offering merchant status, and talk to other business people who are already offering credit card service. There are many reputable companies out there and, of course, there are also bad apples. As a merchant, ask questions about any company you are choosing to use. The company should be willing to answer any questions you might have, as well as to tell you openly if they can't!
While you may pay more fees going through an ISO, it is worth it to be able to say, Visa, Mastercard, American Express or Discover. For those of you doing any kind of consulting it is a big plus. If you eventually sell products, again it is a great convenience for your customers and many times will close the sale. So, GIVE YOUR CLIENTS THE PLASTIC OPTION! Copyright 2004 DeFiore Enterprises Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
MORE RESOURCES:
Sales - Google News |
|
|
|
RELATED ARTICLES
10 Mistakes That Reduce Profitability In my professional experience as a sales and marketing coach/consultant, I've had the opportunity to work with a number of small business owners on various issues related to sales and marketing. The owners who are struggling to keep their businesses afloat tend to engage in some, or all, of the following mistakes that reduce profitability. How Can a White Paper Support Sales and Marketing? A white paper supports PR, marketing and sales because it works for all levels of decision makers. Engineers and executives may not be too impressed by brochures, but they are impressed by well-written white papers. Selling: an art of a skill? Selling is as much an art as it is a skill. The basics of the selling process can be learned by anyone, but the practice of selling is something that the super star sales people have brought to an art level. 10 Important Things To Tell Your Prospects Hello everyone, hope your day is going well! I know this one is short but it is very helpful!1. Tell your prospects that you offer free delivery. Focus on a Trade - Not a Discount Smart buyers will always ask for a better price. Unfortunately, too many sales people and business owners automatically think that reducing their price is the most effective way to respond to this request. Going Global: Communication Across Mental Boundaries A completed communication consists of a sender and a receiver. If there is just a sender - like in a pitch, or a lecture, or a commercial, or advertisement, or even a newsletter - it's not a communication, but an assertion, or a monologue, or an opinion. Instead of Discounting, Back Some Value Out of Your Proposal Last minute discounting has become so prevalent that many companies have come to depend on it as their default sales strategy. Employing a go-to-market strategy of being the lowest cost provider is one thing, but dramatic, tactical discounting on every deal will erode your company's margins and leave you digging a deeper and deeper hole in which your company will ultimately bury itself. Making the Sale When the Customer Wont Buy Ever had a party online or offline, and had guests say "I love that item, but I can't afford it right now", or "It's so hard to decide, I want all of this!". This is a perfect time to sell all those items to your customer without them having to pay a dime. The Struggle to Decide: The Paths Customers Take to Solve Problems Usually my essays discuss the issues that the 'sales' method initiates, methods such as over-long buying cycles, product and brand differentiation problems, price competition, and objections. This article focuses on the buyer: what, precisely, is the real problem they face; and how you lose differentiation/competitive edge/time through your faulty assumption that a sale can be achieved through a clear-cut equation:problem + appropriate product + professional sales effort = sale. 15 Ways To Get Really Motivated First, recognize that motivation is an inside job. The word motivate means to impel, inspire, hope, stimulate, incite, propel, spur, goad, move, induce, prompt, instigate, fire, provoke, actuate, cause, egg on, drive, excite, and to trigger. 17 Tips for Bringing Your Event to Life Your job as an event planner doesn't stop with the meeting in the company boardroom. You may be called upon to organize an employee appreciate event, an awards dinner, a product launch, the celebration of a company milestone, a gala recognizing a longtime employee's retirement, an incentive event for company's sales force, a fundraising event, a holiday celebration?the list goes on and on. Reviving Dead Clients Most consultants I've talked to don't spend any time trying to recover inactive clients and it's a big mistake. We tend to magnify the problem we had or just want to move on, but sometimes a simple apology and offering to make things right will bring you back a client worth thousands of dollars in billing. Selling Services Selling a service isn't the same as selling a product. Your prospect is buying an intangible. The Benefits of Display Mannequins Mannequins are primarily used in stores to display clothing. A display mannequin is usually a full-size dummy in the shape of a person. Improve Your Sales Closing Ratio Occasionally EGOPOWER readers send me questions or topic suggestions that I feel would be of interest to you. In this issue I give some tips to improve your sales closing ratio in response to a question Rob Smith wrote me from the UK: "I sell IT equipment to schools in the UK over the phone. How to Set Appointments The Importance of setting appointments is crucial to running a business. They are the key to a successful business. Dropped Jaw Syndrome, Your Fastest, Most Reliable Market Test Business owners should be more like doctors.Forget selling and start asking your customers where they hurt. What Do Mobile Auto Detailers Clean When it Rains? A mobile auto detailer and their profits are tied to the weather perhaps more than any other business. There are ways to make money even on a rainy day if you are smart. Dont Be Macho Selling Ice to Eskimos This issue's topic was suggested by a sales rep for a small manufacturing company. I was asked to comment about the impact of excessive optimism on the part of salespeople and sales managers. Selling Abilities - Part 1 Selling "-abilities": Reliability (Part 1 of 4) Most salespeople love to talk about their "-abilities": Reliability, Upgradeability, Compatibility and Expandability. Salespeople feel stronger and more confident when they can use their 'abilities' to convince the customer to make a buying decision.
|
| home | site map |
| © 2006 |
