"As a Guerrilla Marketer, You Take Credit
Cards - All of Them..." Jay Conrad
Levinson wrote those words in his book, Guerrilla Marketing.Ý
Those words have never been as true as they are today. To prospects,
it means convenience, and they appreciate you for making it so easy
to buy from you.
Of course, in reality, it isn't easy for many small businesses to get
merchant status. And if you run your business from your home, you can
just about forget it- Unless you read the rest of this article.
Just ask around and you'll find that "most banks don't want to take a
risk on new, home-based, or mail order businesses." Their reasons are
because of the short track record and lower sales volume. Also, mail
order, unfortunately, has more fraud associated with it.
So now that we know it's not always easy to get merchant status,
let's look at the reasons why you should do everything you can to get
it very soon:
INCREASED
PROFITS
Profits are the bottom line for every business. Almost any type of
business will benefit from taking credit cards. But not all of them.
If, for example, you have a very high priced product or service
geared towards very large corporations, taking plastic may not
increase sales very much.
But, assume you're selling a product or service to small businesses
or individuals. Your profits can increase an average of 30% - 80%
according to accepted industry standards. If you're selling by mail
order, your sales will be substantially higher.
If your product or service includes what people want or need on short
notice, your sales can be much higher. Some mail order items are sold
exclusively over the phone, or on an on-line computer service. So you
can imagine how vitally important accepting credit cards can be to
this type of business.
INSTANT
CREDIBILITY
Check out any of the larger corporations that
advertise on television or in the national magazines. You'll always
see that major charge cards like Visa, Mastercard, American Express,
and Discover are welcomed with wide open arms. Customers know that
they are protected from scams and con artists because if they feel
"ripped off," they can call the bank and have the dispute arbitrated.
If you have that option in your ads, your prospects will think of you
as a major player as well.
CLOSE IMPULSE
SALES
You've seen those clever Infomercials on television. We all buy on
impulse. I know I have. In my home, you'll find many items, like
woks, steamers, Flying Lures, and many other gadgets. Millions of
people buy all sorts of these things after seeing them cleverly sold
on TV. But wait! If they didn't take credit cards, I would never have
bought a single one of them! Credit cards let all the customers buy
from you. Just check with any advertising expert and they will tell
you that you must do something to get the customer to ACT RIGHT NOW -
IMMEDIATELY. Letting people use major credit cards is the easiest,
fastest, and best way to do this.
CONVENIENCE
How many times have you wanted to buy something
but didn't because you had to write a check, fill out an envelope,
and mail it in? If you're like most of us, you probably put it off
until you forgot about it!
REDUCED
EXPENSES
Your cost of accepting credit cards will actually pay for itself.
Especially when the costs are offset in no time with increased
revenue and profit. You'll also be saving a lot by reducing your
paperwork and order-processing time. This is why all of the on-line
services, such as CompuServe and America On-line to name only two,
promote paying by credit card. Some of them even charge an extra fee
if they have to send you a statement or debit your checking account.
How much can you save each month if you don't have to open the
envelopes, endorse all those checks, and cover the bad ones?!
WORKING
CAPITAL
Most credit card processors will now connect you directly to their
bank's computer with a processing terminal like the ones you see at
gas stations or the local hardware store. This allows them to
authorize your transactions in seconds, and then deposit the money in
your bank account where you have access in a couple of days. This
means you have sole use of your customer's money that has been
deposited into your bank account to purchase a product.
For example, let's say you sell a computer and have it drop shipped
to your customer. You sell a $2500 computer that costs you $1500
wholesale. You take the customer's order over the phone and then your
customer uses her credit card. In two days, the $2500 is in your bank
account and then you send $1500 to your supplier and keep the rest
($1000) for your profit! You did this all without using your own
money, and it all only took a few days.
NO MORE BAD
CHECKS
When almost any credit card is processed and approved, you can be
100% assured that the funds will be good. Because if the user doesn't
pay their bill, the credit card provider takes all the risk, not you!
Remember, you already have your money in the bank. For retail
businesses, Debit services are now available with the use of optional
hardware. If you are dealing with the customer "face to face," you
can now take their debit card and transfer the money directly from
their account to yours. Check guarantee services are great at
covering bad checks but its a real hassle! This avoids taking any
checks at all. How many times have you heard " the check was good
when I wrote it?" Just about every bank issues an ATM card with a new
account. Why not use this situation to make your life simpler and
your business more prosperous?
NO MORE LOST
BUSINESS
When I decide to purchase something over the phone or by mail, I
always find a company that accepts credit cards. I'll bet you do the
same. Why? Because we know it saves time, provides security, and
gives all of us an automatic warranty if we're not satisfied with the
purchase.
If a company doesn't take credit cards, I just pass over them and buy
from a similar one that does. You can be sure that most people do the
same thing.
WE ARE A "CASHLESS
SOCIETY "
If you don't accept credit cards, you are losing business to your
competitors that do. More than 100 BILLION DOLLARS in purchases were
made last year by credit cards. Any mail order business can expect
85%-90% of their total sales to be from customers using credit cards
alone.Let's face it: doing business today is no longer just a local
activity. We do much business nationally and globally. We take the
orders via fax, phone, and computers. Business on the internet, for
example, is EXPLODING more rapidly every single day. By accepting
credit cards, you will be part of that growth. You will get your
share of the enormous business that is just waiting for your
offer.
So, get ready. Start RIGHT NOW to increase your income and grow your
business. Get your merchant account and join the successful
businesses that are growing rapidly because they already accept
credit cards.
How do you get a merchant account? You can turn to an independent
bank card agent. He or she can help almost any type of business get
merchant status both quickly and easily.
WHAT TO LOOK
FOR
You have to shop around because some agents will end up costing you
more than you expected. Be on your guard for EXTRA FEES, like their
monthly minimums, voice authorization fees, daily closeout fees, and
the dreaded charge back fees. Another ploy to watch out for is the
one that offers a very low set up with a higher discount rate. These
often end up costing you many times more than you realized. The
reason is because the rates go up gradually, but only after you are
set up...
A good way to check a bank card agent's credibility is to ensure that
they disclose the bank's name, processing network, and ALL associated
fees. These are required to be disclosed by Visa and Mastercard, and
any company that doesn't may be a little shady.
A very good independent agent can get you merchant status even if you
work from home or have a mail order business. Why? Because their
program deducts the percentage rate (discount % fee) at the time of
the transaction rather than at the end of the month.
In addition, they use 100% electronic processing via an electronic
terminal or computer software. This makes it 100% safer and reduces
fraud from stolen credit cards. It's for this reason that they can
accept most any business except travel, 900 sex lines, pawn shops,
and a few others. Also, all good agents don't have floating rates,
hidden monthly minimum fees, and no minimum monthly volume
requirements. If you are offered these stay away because you will end
up paying much more later on!
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