In the last few years, I've noticed credit card charges increasing at an alarming rate!
Some people think CC charges (3%) are not that big of a deal. But you have to think about CC charges in a different way.
If you are making 10% net profit before tax, that is good. But if someone pays you for a system by CC, you just gave away 30% of your profit. 3% is 30% of 10%.
Or even worse, if you are only netting 6% profit, payment by CC cost you 50% of your net. 3% is 50% of 6%. You have to stop this huge profit leak!
In your service department, the easy way to do this is to go up 3% across the board on all of your flat prices. Or, have your dispatcher ask the customer "will you be paying by check, CC or cash?".
When they dispatch the call, they tell the tech how the customer will pay. If it is by CC, the tech must add 3% to the flat rate price before giving the price to the customer.
On system sales, the comfort consultant must ask the customer how they will pay. If it is by CC or financing, the cost must be added to the price before giving it to the customer.
You can't afford to give away 30% to 50% of your net profit!
Remember, if you want to increase your sales and profits, go up on your prices!
Thanks for all you do and as always “Expect More From Us”!
Thanks,
Bruce Martin
Dealer Business Consultant
Value Added Distributors
(757) 469-1205
