In the last episode, I began a discussion about how to compete against Square by focusing on their weaknesses There are two specific weaknesses in the Square platform which we can leverage to our advantage. Refer to the last episode if you need a reminder of those.
Unfortunately, most ISOs and agents aren’t getting any training on how to compete with Square. There are many markets right now where Square is very, very prevalent. If you don’t know how to compete with Square, you’re in trouble.
This is the approach I use.
When talking to merchants who have Square, I first ask about the benefits they have received from the use of Square technology. When they admit there have been none, other than simple pricing, I transition by saying,
“Okay. So, basically, the reason you have this technology sitting here is because you like the simple pricing that Square offers; am I right?” [Merchant agrees.] “Okay, great. You like that flat 2.75%? Let me actually show you something that might surprise you though.”
I go to squareup.com on my phone and click on pricing. “Here, take my phone for a second and scroll down through there. See if you can find the solution that you have and the pricing you’re actually paying right now.” CLICK HERE to go to the last episode to see screenshots of Square Pricing.
Suddenly, you’re throwing some doubt on this Square relationship.
The merchant will be thinking, “Wait a second. Is this really as simple as they’ve projected in all their ads? Or has it suddenly become more complicated? I bought this thing but I’m not getting any value from it.”
I’m including screen shots to show you how much you can resell the Square register for on eBay and Amazon. They have a great resale value. Don’t ask the merchant to do that. Just say, “Hey, I’ve got this great deal for you – I’m going to buy your Square register. I have a buy-back program. If you switch to me, I will give you X amount in cash to buy that back.”
Are you missing an opportunity?
I think our industry right now is literally fast asleep!
HELLO, EVERYBODY! Square is making huge progress, big inroads. Although they won’t take over the world, they have a very sizeable chunk of business. They’re willing to lose a lot of money in the process, and that’s tough to compete with.
But what you CAN do is have a concerted effort to compete with Square; have a marketing piece; have a plan of how you compete with Square. Have pricing that competes with them – do true flat rate. Find your strategy to compete with them and then communicate that strategy to merchants through the sales partners.
Do you want to know the best strategy?
Once you’ve explained the buy-back program, show merchants the Clover Mini or Poynt terminal. Both of them are great competitors for Square. Explain to merchants that you will train them how to use the system.
Obviously, this should go without saying here: you must offer competitive pricing to compete with Square. This is a case of fighting fire with fire. Square’s pricing is very simple; your pricing will need to be simple. Do something like the 2.5% and $0.10 plus your hardware / software fees. That way you’re covered on those small ticket merchants.
Square figured out real quickly they didn’t like losing money, right? So, check their website to see the current price and match it, or beat it and communicate this comparison to your prospects.
Say to merchants, “Look, we’ll buy your system back. We’ll match Square’s price. And we’ll give you a better system and train you how to use it. If I’m willing to do all of that for you, aren’t you willing to at least give us a shot and see how this new system works?”
Since these accounts may be difficult to get, you may need to go a step further. Make this offer to merchants,
“I’m positive you’re going to like our system and service better than Square. I’ll prove it by giving you $100 to try it for 30 days. You will have a guaranteed buy-back certificate if you decide to move forward after the 30 days. I won’t even take your Square register with me yet, you can hang on to that. If you don’t move forward with me, I’ll take my Clover (or Poynt) back in 30 days, and you can just go back to your Square register with no hassle. That’s how sure I am that you’ll like our system better!”
Every single time I ask agents the biggest competitor they’re facing in the field, I get the same answer: Square! Be willing to take a little bit of risk to entice merchants into trying your system.
If you know how to sell, you know how to build relationships. You may have to go over the top to initiate that relationship.