Merchant Sales Podcast · How To Sell Subscriptions To Large Merchant Accounts The payment processing industry is shifting toward simplicity, such as...
My SuperSaver Processing tips and How to Sell Merchant Services to Auto Repair Shops
Are you ready for some SuperSaver processing tips for auto repair shops? This is the fourth episode in my mini-series on selling specific business types. Learn to offer big savings for auto repair shop processing. This industry is one of my favorite verticals. I have more clients from auto repair and pizza shops than anything […]
Are you ready for some SuperSaver processing tips for auto repair shops? This is the fourth episode in my mini-series on selling specific business types. Learn to offer big savings for auto repair shop processing. This industry is one of my favorite verticals. I have more clients from auto repair and pizza shops than anything else. Benefit from my experience to customize your pitch and sell merchant services to auto repair shops.
Read the previous article here: http://bit.ly/2ismwoy My 3 Tips for Selling Hair and Nail Salons – How to sell merchant services to hair and nail salons
The number one challenge for processing in auto repair shops centers around the types of electronic payment accepted. In this industry each transaction is usually $200 or more. Therefore, the percentage fee rather than per item fee is the priority concern. A shop might do $10,000 two different months but pay $200 one month and $430 the next. This is caused by interchange costs. If a client uses a corporate card to pay, there might be a 2.5% fee on interchange which translates to $25 on a $1,000 charge. By encouraging clients to pay using check and debit cards, auto repair shops can save tons of money. Suggest they let customers know they prefer those methods of payment. An even further extreme would be to allow only the use of a debit card with pin number.
Number two processing challenge is chargebacks. If a customer driving an old car has a transmission break down six months after his repair, he may blame the repair shop. The repair shop refuses free repair for the second breakdown. So, the customer calls his bank saying there was a fraudulent charge on his card. That is a chargeback. There is no such thing as fraudulent pin debit transaction. The bank sees that a pin number was used. The use of pin debit is very beneficial for auto repair shops!
Consider this example. A shop is doing 50 transactions per month average. Since clients want reward points, only about three transactions are with check or debit card. If the shop gets that number from three to fifteen, they could save as much as $100 per month. That is a .05% cost which is very low. The low percentage is the key. Give that low percentage, add 50 or 60 basis points mark up, then the shop’s costs are coming down while you make a healthy profit. Everybody is happy!
Another SuperSaver processing tip for auto repair shops is the use of electronic check processing. Strongly encourage owners to have “check conversion plus guarantee.” The use of electronic checks is convenient for shops. But the convenience isn’t as valuable as the guarantee. This guarantee says, “If the check processor accepts this check, they also accept the risk of a bad check.” A bad check isn’t returned to the auto shop but to the check processing company. Thus, the shop won’t lose any money for returned checks. Also, the owner never has to have the conversation with a client concerning a returned check. If shops accept checks for payment, stress the benefits of check conversion plus guarantee.
Now let’s discuss how to sell merchant services to auto repair shops. Auto repair shop owners and workers are very easy to contact. That is great for sales people but not so great for them! Be sure you dress casually and have a relaxed attitude. Casually begin conversing, “Hey, how are you all doing today?” This is the approach I use:
“I’m doing a little research to help some auto repair shop clients of mine. We are trying to brainstorm ideas. Do you guys get a lot of chargebacks on the credit card transactions where people later claim it was fraudulent?” [They say “no.”] “Okay. That’s cool. What about electronic checks? Do you guys take them?” [They answer “no.”] “Do you think you should?”
They will usually talk to you. But use the premise that you already have auto repair clients and are brainstorming some programs. I don’t customize marketing materials for this industry. They don’t respond well to a shiny auto repair program for payment processing. They prefer casual, relaxed, in the local market approach.
Cash discounting is often popular with auto repair shops. Although I’m not a fan of cash discounting, right now that’s the best we can do to pass costs on to the consumer. [Watch for information on my big live event in January to discuss this topic.] Converse about cash discounting, “I have another client that is passing his/her costs on through to the consumer, similar to a surcharge. Have you seen anything about that?”
Now that you’ve talked for two or three minutes, casually remark, “I’m trying to help my other clients. Could I ask to take a quick look at a statement to see what your fees are? I’d like to be able to give you some tips for free that might help lower your costs. I’ve been working with my other clients. Maybe I can help you guys out, too. Do you have a statement I could take a quick look?” That’s how you sell merchant services to auto repair shops.
I’ve sold tons of these auto repair places. This really does work! Hopefully I helped you today. More episodes are coming in the mini-series.
Read the next article here: http://bit.ly/2nrMlH0 The Key to POS Integration – How To Sell Merchant Services Fine Dining Restaurants