Master this concept and close more deals. Use buffer statements so you can close multiple times without making merchants angry. Today is the last...
3 Tips on How to Close Sales in the Merchant Services Industry
Today, I want to share 3 simple tips on how you can close deals. Maybe you have a merchant that already gave you their statement, you completed the cost analysis and now you are ready to go back in and close the deal! Here is how you can close more deals: 1. Set yourself up […]
1. Set yourself up for the close on the first visit. When you get a new statement, you can’t just take that statement and run out the door, you need to take a minute to set yourself up for a great follow up visit. Start by calculating the effective rate before you leave their business. This is done by dividing the total fees charged by the total processing volume.
Next, understand the different pitches based on their effective rate.
- If their effective rate is 4% or higher (Example they process $10,000 in credit cards and had $400 in fees), you should be able to provide great savings as long as you are with the right processor. So, you might say to the prospect, “Wow, we should be able to significantly reduce your fees based on my quick analysis, I will bring back a detailed cost analysis in a couple days but, I can tell you right now that if savings are important to you, you will probably like what I am going to show you. Before I leave, are there any concerns other than savings that would keep you from switching to our company?” It is always best to ask this type of question before you come back for the presentation because you don’t have to try and close at this point. If they bring up a concern, you can deal with it or you can say, “That is a great question and I am going to do some research on that issue before I come back on Friday.”
- If their effective rate is 3% to 3.9% we should still be able to offer some savings but, again this is where having the correct processing partner is important and obviously these effective rates vary by industry but, as a general rule we can offer some savings. So, in this case you want to say, “I see you are getting some good pricing here, this is one of the larger processors. I am a local business owner just like you so it is always difficult to compete on price with the big guys but, I am going to do my best to shop around for you and try to beat this price. Let me ask you this, other than the price is there anything else that will influence your decision? I know many of my clients are looking for local service or maybe they like our free equipment program where we provide a new upgraded terminal for free… (Stop talking and let them respond.) Now, you have set yourself up beautifully for a return visit where you can say, “I have some great news! I know I told you that you were already getting some great pricing but, I went to work for you and I was able to get you the free, upgraded terminal we talked about, and I was able to beat their price by over $200 per year, so I can save you some money and you can support your local small business community which I know you mentioned was important to you…”
- If their effective rate is 2% to 2.9% then cost savings will probably not be the major selling point unless they are very large and doing over $30,000 per month in volume. So, in this case, say right off the bat, “Bob, I am going to be honest with you, after taking a quick look at this statement I can see you are getting very competitive rates and I may not be able to beat them by much, so before I take this back to do a cost analysis I need to know, how important is it to you that you are supporting the local small business community? In other words, if I am able to at least match their price and provide you with a free upgraded terminal, would you be willing to switch over to me in order to support a fellow small business owner?” This is a tough question for a business owner to say “No” to and if they say “I would certainly consider it” or something like that, you now have great ammunition for your return visit even if all you can do is match their current rate.
- If you figure their effective rate at less than 2% you probably did something wrong or you are missing information on their fees. This is where you would look for “Daily Discount Fees” which you can see in the video mentioned above, or ask the merchant, “The fees here are not adding up, is there an additional statement they send you?” If they say “No” ask them, “It only shows X amount of fees on this statement and by my calculation this should be a bit higher, on your bank statement are their any other fees you get charged from this company or any other company relating to your processing account? Maybe charges for equipment, etc.?”
2. Timing is everything! When you walk in to close a deal and the merchant looks busy or upset ask them, “Bob, I did do some shopping around to find you the best rate but, I would like to have 5 or 10 minutes to go over this cost analysis with you, is this a good time or should I stop by later in the week?” Also, when we talk about timing, understand that you should be able to read the merchant’s body language and their response to questions like, “What other questions do you have for me Bob?” during the presentation to determine if closing today is a good idea. If you can tell the merchant is hesitant and may not trust you say, “Thank you so much for your time today Bob, I certainly don’t want to push you to make a quick decision so how about you look over this and think about it and then I will follow up on Thursday to answer any other questions you have?”
3. Be confident in your solutions. If you are not confident, it will be difficult to make sales and especially those sales where the savings are not there. You need to say things like, “Bob, I am confident that I have the best solution and being a local business owner myself, I know I can provide better service than the company you are with now, you would agree with that right?” If they are hesitant to give you a statement say, “Bob, I can assure you that I operate with the highest integrity and you can verify that with anyone I have done business with, my goal is to develop a long term relationship with business owners all over this community so I honestly cannot afford to do anything that would harm my reputation. Here is my card for you to hang onto and I will follow up with you to present the cost analysis on Friday, is there a good time for you on Friday?” Be confident!!!! Don’t be pushy, you don’t need to be pushy if you are confident.I hope this helps you to get out and close some deals today!
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