Can Cashless Payments Benefit Your Business?
Thursday, 5 January 2017 | Scott
It's Friday afternoon.
You've finished your last job for the week.
You get home and sit down to have a final glance through your books.
By this point in the day your minds only half in it, what you're really thinking about is how your first pint will look at the Winchester.
Lo and behold, to put a dampener on your evening, you notice an ever growing list of unpaid customers and alarms start ringing in your head.
Instead of knocking off for the weekend and spending time with friends and family, you're now stuck chasing down customers with way overdue payments, only to hear the same old excuses.
If this situation is familiar, maybe it's time to start considering cashless payments.
Nowadays, there are a number of options to take payment without your customer needing cash and for most customers, they expect this to be the case.
For a while, taking cashless payments was expensive and not particularly easy to use, however there are now a number that are easy to use and small enough that they can be stored in a pocket or glove compartment.
At the moment, there are two cashless payment options that you should consider.
Being able to take direct debits will be a game-changer for your business and GoCardless is currently one of the best means of doing so. GoCardless has been gaining popularity in the window cleaning industry and for good reason.
With NO upfront costs and rates of just 1% per transaction (capped at £2.00), there isn't a cheaper and more convenient way to take direct debits. If you were to add 1% to your rates, a £10.00 clean would now be £10.10. The 10p won't be a problem to the customers and will mean your business won't be losing out.
Being able to set up direct debits will mean keeping track of your accounts will be simple, and you'll no longer be stuck unsure of when and how your earnings will be coming in. In many cases, the convenience will make it preferable to the customer.
There is a downside to direct debit payments however. There is always going to be customers that will have negative connotations of direct debit payments.
That's where iZettle comes in:
iZettle is a company that has been around a little while and is hugely well regarded.
iZettle provides a range of simple to use card readers that connect to your smart phones or tablet. iZettle card readers allow you to take payments (and even have a range of your payment structures pre-made) in seconds from literally anywhere, so long as you have your phone with you. It can display your logo, create a shopfront for the app and will send email receipts (or can be used with a printer) on your behalf.
In the interest of cutting to the chase, here's the low down of what iZettle will cost to use.
Most of the cost with iZettle, much like GoCardless, is per transaction. Transaction rates start at 2.75% of each transaction and will decrease the more you use it. This is a competitive rate for card readers. The card reader usually retails at £59.00 + VAT however for a limited time you can get it for £25.00 HERE.
The cost per transaction can easily be accommodated by adding 3% to your fees. A house worth £10.00 can will now cost £10.30. That 30p won't make a difference to the customer and will mean now you can take card payments cost free.
More than that though, whilst customers may not have cash, they are rarely going to be without their card.
Can you justify a £25.00+Vat spend if it means no more repeat visits to customers, chasing down payments and hearing the same old excuses.
As you well know, in the window cleaning industry the phrase 'time is money' rings true. If you're still reading, you understand the pain of chasing customers for payment. Wasted time is not just wasted energy and on top of that, with iZettle software you can track of all incoming money meaning keeping track of your accounts just got a load easier also.
If ever there was a no-brainer for your business, taking steps to set up direct debits & take card payments would be it. There's never been a better time for inexpensive, easy to use options that will save you energy and give you more time to be out there making money!