Be honest with yourself. Have you ever said any of these common phrases below?
“We do a pretty good job making sure our costs are low.”
“We already switched vendors and are certain we have good rates.”
“We were told we have the lowest rates.”
“We really like our rep. They take good care of us.”
Well, these statements are more or less defense mechanisms created by our subconscious to convince ourselves that we’re not getting taken advantage of.
The truth is, how can you possibly know if your rates are as low as they should be? If you don’t know, then you are probably overpaying. There’s nothing wrong with you… you are just like nearly everyone else!
There are several reasons 95% of businesses overpay for their merchant services:
1. Limited data for optimizing their merchant processing configuration.
2. Lack of time to focus on a non-core activity.
3. The traditional sales rep-client relationship.
Depending on the size of the business, the job of setting up and tracking merchant services costs might fall on the owner, CFO, accounting, IT, business manager, or maybe even someone in accounts payable. In almost every case, the services in question are a necessity, and the individual charged with setting up or maintaining the service has little or no expertise in merchant processing. After all,why would they?
Now, in contrast, just imagine:
• You had a database containing the details of over 17,000 merchant services pricing deals from all different types of industries.
• You had software specifically designed to “lift the fog” and make it easy to understand all the different fee categories associated with your pricing model.
• You had someone who followed the ever-changing markets daily and had the negotiation strength of a large national organization.
• You had someone who knows all the unpublished deals, as well as how system or process tweaks can save thousands?
What are the chances your rates would be lower? You guessed it – about 95%!
Lack of Time
Let’s cut to the chase… is your time more valuable doing what you excel at for your business, or trying to become a cost reduction specialist in merchant processing? What is the opportunity cost of taking focus off the core business?
Instead of taking your eye off the ball, just imagine:
• For less than you pay today, you can have a team of professionals that handle all things related to merchant processing.
• For less than you pay today, you have a team of professionals who hold suppliers accountable, looking for billing errors and suggesting additional cost savings if/when they occur… all while you focus on your core business.
Would that free up time and give you some peace of mind?
The Traditional Sales Rep-Client Relationship
This might be the most important differentiation between Schooley Mitchell and the rest of the market. Consider the true objective of a sales rep: their job is to get business for their employer in the most profitable way possible, and make it more profitable over time. Is this a bad thing or does it make sales reps bad? Of course not, it’s how business works and is a necessary aspect of free markets
Now, instead of the traditional sales rep-client relationship, just imagine:
• A consultant who is only paid if savings are found and implemented.
• A consultant who is paid a portion of found savings after you realize the savings.
• A consultant whose pay is exactly equal to the value they bring.
• A consultant who is unbiased as to who provides the given service and is completely objective with cost-saving recommendations.
In a nutshell, for less than you pay today, you can have a professional team that optimizes the merchant services configuration for your business.
Is the 95% accurate? Yes, that percentage is compiled from our last 20 years and our 17,000+ clients who have saved more than $260 million!
Bill Gribble is a Strategic-Partner with Schooley Mitchell, North America’s largest independent telecommunications and merchant services consulting firm in North America. On average, we reduce telecom and merchant services expenses by 27-28% and have delivered over $260 million in documented savings to our clients to date. Visit his site at www.schooleymitchell.com/bgribble.
© Schooley Mitchell 2017