Getting “Yes” or “Yes,” Cash Discounting or Traditional Processing – Selling Merchant Services
There is a misperception on the part of processors, managers, and even some sales people who haven’t been in the field. Some believe cash discounting is evil and nobody likes it. Others believe cash discounting is the amazing answer to all their problems and can be sold to anybody. The reality is that neither of […]
There is a misperception on the part of processors, managers, and even some sales people who haven’t been in the field. Some believe cash discounting is evil and nobody likes it. Others believe cash discounting is the amazing answer to all their problems and can be sold to anybody. The reality is that neither of these extreme opinions is even close to true.
No matter how good your pitch is, you will discover there are three out of four merchants who won’t buy cash discounting. Geography does matter. In some market places you could sell one out of three; in other markets maybe one out of ten. However, there are anywhere from 10% to 30% in every market who are very interested in cash discounting. These accounts are so profitable that you want to get them before your competitors. This situation raises the question, “What should you pitch? If you pitch cash discounting, how do you backtrack and sell traditional processing?” Here are helpful tips which are important to this evolution of selling cash discounting before everybody wants it.
#1. Start with a conversation. The opening pitch should generate conversation. One sales rep with whom I talked ended his opening pitch with the question, “Are you interested in learning more about cash discounting?” Although that sounds good, you don’t want end with a “yes” or “no” question. Between 70% to 90% of your prospects will say “no.” Then will you back track to traditional processing after you already have a negative flow?
Here is a better example of opening pitch, “Hi. My name is James Shepherd. We have a really unique program right now where we are able to save merchants up to 90% or even 100% on processing costs. It is called cash discounting. I’m just curious if you’ve ever heard of it? Cash discounting or surcharging is passing the cost of proccessing on to the consumer. Have you heard about that at all?” Rather than a “yes” or “no” answer, this pitch will open a conversation with merchants.
#2. Make sure you give the pros and cons. I call this option selling. This means you are selling two different things. This method can be negative if you confuse the prospects with two totally different things. However, it can also be positive if you get “yes” or “yes.”
You want to leave both pathways open throughout your pitch.
You don’t want to totally close the traditional processing option right off the bat. Don’t be afraid to discuss pros and cons of cash discounting with prospects when you’re pitching it. I recommend pitching cash discounting and trying to close with it. However, I also recommend offering two proposals in the closing.
#3. Closing – Offer a proposal for traditional processing and one for cash discounting. Say, “I want to give you some information, so you can see what the numbers actually look like for your business.” Instantquotetool.com will help you quickly get prospects a nice PDF proposal for each. And you can hit “compare programs” to show merchants the numbers on each one. Show them the savings and their fees, everything will be there for them to see.
#4. Close them on the spot by saying, “Let’s take a look at these. See how much money you could save with cash discounting. Let’s at least give that a shot. If it doesn’t work out, you’ve already got your proposal and know you’re going to also save money on traditional processing.” In this way, the close includes traditional processing. You’re offering merchants “either, or.” You can further explain by saying, “I would highly recommend you try cash discounting because you are going to save so much more money. But that way if things don’t work out – if you have any issues with it – we can easily switch you back to traditional processing. You’ve already got that pricing and that proposal in your hand. So, you know worse-case scenario, you are going to save money. It’s up to you, Mr. Jones. Are you comfortable moving ahead with the cash discounting, or would you rather just start our relationship with traditional processing? Then maybe try cash discounting down the road?”
Now the 10% to 30% of merchants who are interested in cash discounting will say, “Yeah, let’s give it a shot.” They’ll feel more comfortable having the other proposal if needed. The 70% to 90% who are not comfortable will be glad for you to save them money. And as cash discounting becomes more popular, they may want to implement your other proposal. Your close is, “Here are both proposals. Which one do you want to move forward with?”
No matter which choice they make, merchants know they have another option available. They won’t need to seek a different company; they already have your proposal ready for either option.
So, that’s a way to help you sell cash discounting and traditional processing while the industry is evolving and more merchants are starting to accept cash discounting.