Following our series on closing the deal, we’ve looked at several instances where the merchant or business, through their own sales process, actually put roadblocks between the customer and the sale.
A recent article on Entrepreneur.com called “You Don’t Succeed by Making it Difficult to Buy From You” perfectly describes a common issue: nickling and diming over merchant processing fees.
To quote the author, William Bauer of ROYCE:
A recent visit to a new deli in my neighborhood and the ensuing aggravation of the experience (and educational takeaway from it) prompted this article. There was no “$10 minimum purchase” sign at the counter where I placed my order. I first saw the dreaded $10 minimum purchase sign at the register when my $7.99 order was complete. Having no cash, I took out my credit card and was quickly told about the strictly enforced $10 minimum credit card policy.
I was given two options: either be compelled to purchase something else that I didn’t want or need to exceed $10 or leave. After trying to explain to the cashier the concept of lifetime customer value, particularly for a new deli trying to gain market share in the saturated Chelsea food space, I eventually said, “no thank you” and walked out.
We get it: being a merchant who processes credit cards can get expensive.
All those little charges and fees add up.
In fact, our biggest Quickbooks nightmare is properly entering and categorizing all those little dings that seem to accompany every instance where we charge a client credit card.
News flash for you:
No One Freaking CARES If It Costs You 3% To Process A $7.99 Order!
Some other real-world examples:
- Webmasters who charge a fee to transfer files to a new webmaster if their client leaves them: “It’s $35 if you pay by check or wire transfer, or $39.50 if using a credit card, to cover our processing fees.”
- Why some companies only accept Visa and MasterCard: “American Express and Discover charge a percentage point more and it takes one day longer for the payment to settle to our bank account.”
- Someone asking us to be an affiliate of their launch actually said this: “The commission per sale is 43%. Actually, it’s 50%, but we have to take into account the merchant and fulfillment costs, so we can only pay 43%.”
- Using Mr. Bauer’s example above, they want to force the customer to buy more (an extortionary, unethical upsell) because merchant fees are so “expensive”.
For crying out loud,
Your Customers Are Willing To Pay For Convenience, And Weren’t Even Thinking Of It Until YOU Brought It Up
Our advice to the above:
- Charge $40 regardless of how they pay, if you insist on being a “jailer” webmaster and making your leaving customer even happier to be done with you and your nonsense.
- Raise your prices by 1% and get a grip.
- No one gives a rat’s ass about your problems. Charge 7% more for your infoproduct. Or just say it’s 43% and see who’s willing to help. Either way – again, no one cares.
- Suck it up.
They Want Their Needs Met And Problems Solved. Now. An Extra 50 Cents Or Five Bucks Won’t Change That, Unless YOU Make An Issue Of It!
So raise your prices and stop chasing away the deal you just closed.