In 2018 Square is going to become a more serious threat in our industry. Those who don’t believe that probably haven’t been in the field selling for a while. Targeting specific verticals with a specific value proposition is key to competing with Square. Understanding what matters most to each vertical will give you the edge you need to steal their clients. This episode will give specific strategies to help you “one up” Square.
To steal clients from Square, you must target specific verticals. I suggest you go to YouTube and watch “How to Target Specific Business Types Selling Merchant Services“. You’ll find a series of six or seven episodes on how to sell merchant services to certain business types. These will help you understand what’s important to each one. Choose specific business types to target.
Then look at the Square threat specifically. What do merchants like so well about Square? The top priority is simplicity. Square is easy to use. Merchants don’t feel worried about dealing with sales reps. The details of credit card processing are taken off the table for them.
The good news for our industry is that this simplicity is fairly easy to replicate. Offer some kind of flat rate pricing. In my opinion, Square’s biggest strength and their biggest offsetting weakness is pricing everybody the same. That’s a big advantage for them in the market place. However, most merchants who are in a physical location are paying more than the advertised 2.75%. Square can’t do a TRUE flat rate. They don’t know whether merchants are doing key entered transactions or corporate rewards cards. They don’t know merchants’ average ticket size. Without that information, they can’t do TRUE flat rate pricing.
In our industry we know who we are targeting, so we can go in with a TRUE flat rate. Here is an example conversation if you go into a pizza shop:
Sales Rep: “Hey, I see you’re using Square on the counter there. I’m guessing you like Square because of the simple flat rate pricing, right?”
Merchant: “Yes, we love it. We never have to look at the statement anymore.”
Rep: “Okay, let me tell you something that might surprise you. Do you key in transactions at all for delivery orders or anything like that?”
Merchant: “Yes. We do that all the time.”
Rep: “Let me show you something.” [Take out your phone and Google “Square payment pricing.” Click on it.] “Look at this. Did you realize that on those transactions you are not paying 2.75%? You are paying 3.5% plus $0.15. Oh, by the way, I see you are using the Square register. Did you know that those transactions are 2.5% plus $0.10? Actually, only that little swiper you have on your phone for the extra orders when things get busy is the one at 2.75%. Let me tell you what we have for a pizza shop. Knowing how much you love simplicity, we have created a TRUE flat rate. Ours is 2.9% [or whatever you’re offering.] That includes keyed transactions, rewards cards, register transactions – everything. The only question, Mr. Jones, is this. Do you also appreciate the functionality of the Square register? If so, we have a solution called ShopKeep [or Clover or NCR Silver or whatever you’re selling.] Or I can provide a traditional terminal if you would prefer that.”
In that pitch you are presenting the idea that you can “one up” Square. The overall pitch says, “Yeah, they SAY they are flat rate, but they are not. I am flat rate.” However, the specifics of pitch must change depending on the targeted vertical.
In pitching a retail store, that plan wouldn’t work. If the store is using the traditional Square stand, they really are paying 2.75% flat rate. Use another direction for retail. You could say, “Hey, I’m sure you’ve noticed the Square register doesn’t do a good job of managing inventory. There are several things they don’t offer which could be a big help in your store.” Talk about such things as Poynt terminal or customer connect, which is a great rewards program. You want to “one up” Square not necessarily on the technology side as much as better service. Decide why each particular vertical is using Square. Then you can craft a custom proposal for them.
So, first choose which specific vertical to target. Then use one of these two approaches to steal Square clients.
- Offer TRUE flat rate pricing on everything, unlike Square. You are simpler than Square.
- Offer a specific technology solution just for their business type – a specific value proposition. One example is a specific app on Clover. Assure merchants that whatever you offer will help them run their business better. It will help their business to grow, to market, a website, etc. The specific value proposition for their business should just so happen to be integrated with the payment processing. Merchants will need to switch it, as well, if they switch to that solution.
I believe many of you could go after pizza shops and other businesses which do a lot of key entered. Also, auto repair does a lot of key entered. In my opinion, you could find good success in these verticals. Use the lower flat rate and/or true flat rate pitch, recognizing Square isn’t always a true flat rate. This is a great way to “one up” Square and steal their clients.
I hope you’ve enjoyed these tips in today’s episode. One final very beneficial tip is – go to instantquotetool.com and sign up for a free 30-day trial. When you’re competing with Square, you won’t get a statement. I get the same complaint from reps all the time concerning statement analysis: “James, I’m trying to sell somebody who currently has Square. I called my statement analysis department. They said they don’t do anything with Square because Square doesn’t show interchange rates. They can’t do a comparison on Square.” You’ve got to realize statement analysis departments don’t understand interchange! They must have a statement to make their “educated guess.” Those words are in quotes because it’s usually a bad guess. They make their educated guess about rates and fees. They have no idea what this merchant would really be paying. One of my missions in life is to eradicate all statement analysis departments from our industry!
Our instantquotetool.com system doesn’t start with a statement. We start with thousands of statements! Then the system figures what merchants should be paying and would be paying with you versus who they currently have. So, the “versus current provider” comes later. With instantquotetool.com you can create your proposal out of thin air. Say, “You would be paying $463 with us. What are you paying with Square?” The merchant can get a Square statement to see what he/she is paying, or you can just do the math yourself and figure it out.
Go to instantquotetool.com. Hey, it’s a free 30-day trial! If you enjoy my content and get good value from it, sign up. We would love to help you. We have a brand new, super user-friendly system with a marketing app coming on February 5th. Don’t miss out. It’s going to be really exciting!
Read the previous article here: http://www.ccsalespro.com/competing-square-price/ Competing With Square on Price
Read the next article here: http://www.ccsalespro.com/time-frame-opening-pitch/ The “Time Frame” Opening Pitch