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Leverage Sales to Specialty Shops – How to Sell Merchant Services to Retail Specialty Shops
This is the sixth episode in my mini-series on selling specific business types. How to sell merchant services to retail specialty shops covers a huge range of businesses. These include small businesses of all kinds – hobby, mom and pop clothing specialty, even some small Chinese restaurants could fit this category. The problem in […]
This is the sixth episode in my mini-series on selling specific business types. How to sell merchant services to retail specialty shops covers a huge range of businesses. These include small businesses of all kinds – hobby, mom and pop clothing specialty, even some small Chinese restaurants could fit this category. The problem in this industry isn’t getting the sale but getting it in a way that makes profitable sense. For this reason, some merchant services reps are avoiding retail businesses. If that’s you, you may be missing some great benefits! Find out how to leverage these sales. Big gains are sometimes available even without big revenues. Don’t miss this episode to get in on the gain!
Read the previous article here: http://bit.ly/2nrMlH0 Use My Tips to Get in the Niche of How to Sell Merchant Services to Fine Dining Restaurants
Retail specialty shop owners are easy to find. They are usually not busy. They always hate their current credit card processor, and they are always paying too much in fees. Too often these owners are paying 3% or more in payment processing. A huge chunk of them are now using Square to take advantage of the 2.75% flat rate. You must offer flat rate pricing or something along that line to sell them. Come in with 2.7% and they will probably switch – unless they have a Square point of sale system and a Square register. Then the sale is trickier to accomplish. To interest them in switching isn’t super difficult. However, they are not going to be very profitable to you financially. From a payment processing perspective, selling in this industry is a “no brainer.” Flat rate is the key. Discussing different kinds of swipers might interest them. Talk to your processor to see what options are offered.
Now let’s discuss how to leverage these sales. First you make the sale; make them happy like everyone else; save them a little money; show them what you can do for them. Use the “supporting local businesses” idea as part of your pitch. There won’t be a ton of savings. You could say, “This is going to be a long-term relationship. If I came in here, Mr. Jones, and offered to write you a $500 check every three years, would you accept it?” [Answers “yes.”] “That is basically what I’m talking about here. My offer is flat rate payment processing just like you have now. The only difference is it is going to save you $500. Obviously, this is a no brainer! Let’s start that relationship.” Since you won’t make big money with these sales, don’t invest a lot of time. But do make the sale and take good care of the client.
Here is my philosophy on selling merchant services to retail specialty shops. I don’t mind not making a ton of money off them because I know I’m going to get good referrals if I take good care of them. Your processor might not give you a bonus when they only processed $3,400 last month. You may not get a big bonus and definitely won’t get big residuals. But I find that retail store owners are the bedrock of the community. Everybody knows them, so they are good referral bases. After you’ve made an owner very happy, go back to him/her and say, “Look, last month I made only $11 on your account. I don’t make very much off of this account because I gave you a really good price. I wanted to build a long-term relationship. What I would like is to get some networking from you. Who else do you know in the area who would be interested in saving money as well?” That’s the main reason I enjoy selling merchant services to retail specialty shops.
Another opportunity of big gain for selling in this industry is their need for additional services. They really need marketing, online ordering, Ecommerce, etc. Facebook marketing is a big deal for them. Shopkeep, Shopify, or other similar places may offer set-up for online ordering. After you’ve established a relationship with owners, pitch additional services.
Hopefully these tips were a help to you on selling small retail shops. Check back tomorrow for the next episode of valuable information.