mr lee Posted September 17, 2008 Report Share Posted September 17, 2008 As the construction industry is slowing down i'm thinking of offering people the option of paying us by credit card. It would cost us £250 to set it all up and hire the machine for a year then £15 a month after the first year. We would lose 2% each transaction but possibly gain some more business by having the option to pay by a credit card. The way I was looking at it is, if we can offer an option to pay by credit cards which I don't think any other firm of decorators do in our area it may just swing peoples thoughts to having work done which they couldn't afford to have done before. They can have the work done, pay on a card then pay for it at a later date themselves in as many installments as they want to their card company rather than having a lump sum go from their bank all at once especially in the run up to Christmas. What's peoples thoughts on it? Good idea or bad? Quote Link to comment Share on other sites More sharing options...
jay222 Posted September 17, 2008 Report Share Posted September 17, 2008 sounds like a smart move on your part Quote Link to comment Share on other sites More sharing options...
Maiden22 Posted September 17, 2008 Report Share Posted September 17, 2008 (edited) . Edited March 7, 2009 by Maiden22 Quote Link to comment Share on other sites More sharing options...
poppythedog Posted September 17, 2008 Report Share Posted September 17, 2008 If you decide to go ahead I would reccommend youjoin the Federation of Small Businesses if you're not already and then you can get a special deal with Streamline which means debit cards cost you 18-24p & credit cards 1.2-1.8% it's not much but if your turning over a lot then the difference can be worth quite a bit. Quote Link to comment Share on other sites More sharing options...
mr lee Posted September 17, 2008 Author Report Share Posted September 17, 2008 Decorators? Don't they normally prefer, ahem, cash? I suppose it depends on the volume of business you do through it. The ongoing and initial charges could be a small proportion or a large proportion. Also, you could always offer the facility, but say that this entails a 2% charge to cover the additional cost (or price it in but offer a 2% discount for cash / cheques). Robert Everybody likes cash. :good: Initially we discussed pricing it in and if they pay cash then they get the discount of 2%. The initial charges are something we would just have to price in where possible without taking the mickey over the course of the year. Works out about a fiver a week on each quote. Hardly noticable really. What we are trying to do really is look at ways of getting people to carry on having work done whilst other companies struggle on. Quote Link to comment Share on other sites More sharing options...
mr lee Posted September 17, 2008 Author Report Share Posted September 17, 2008 If you decide to go ahead I would reccommend youjoin the Federation of Small Businesses if you're not already and then you can get a special deal with Streamline which means debit cards cost you 18-24p & credit cards 1.2-1.8% it's not much but if your turning over a lot then the difference can be worth quite a bit. I didn't know that Poppydog. Cheers for the info. Quote Link to comment Share on other sites More sharing options...
mossy835 Posted September 17, 2008 Report Share Posted September 17, 2008 dont think i would have any work done on a card. Quote Link to comment Share on other sites More sharing options...
Mungler Posted September 17, 2008 Report Share Posted September 17, 2008 Not a bad idea - it's just an extension of what is already out there and happening. You can buy windows from glazing companies on credit cards and materials from B&Q on credit card. The only thing you want to watch out for is that by taking credit card transactions you will be selling your sole to the credit card companies - each transaction will be deemed a tri-party credit transaction. This means that if the end customer decides to bump the card company they will probably have a clawback provision to recover from you or if they claim "faulty work" or service not properly performed, the card company will just reverse the transaction and leave you trying to collect your money from the customer for the next 12 months. Quote Link to comment Share on other sites More sharing options...
mr lee Posted September 17, 2008 Author Report Share Posted September 17, 2008 Not a bad idea - it's just an extension of what is already out there and happening. You can buy windows from glazing companies on credit cards and materials from B&Q on credit card. The only thing you want to watch out for is that by taking credit card transactions you will be selling your sole to the credit card companies - each transaction will be deemed a tri-party credit transaction. This means that if the end customer decides to bump the card company they will probably have a clawback provision to recover from you or if they claim "faulty work" or service not properly performed, the card company will just reverse the transaction and leave you trying to collect your money from the customer for the next 12 months. Mungler, that was one of the concerns I had but there again, if they give me a cheque as most do anyway at the moment, that could bounce or be cancelled leaving me chasing regardless. I have been chatting to a lad about using a company called 'cardsave' for the mobile machine and their pro's and cons and he rated them quite highly. The upside of all this is the fact the money is in my account at the end of the day rather than having to wait for cheques to arrive, get to the bank, wait for it to clear etc etc etc which can add on anything from a week upwards at the end of the job. Quote Link to comment Share on other sites More sharing options...
jayward Posted September 17, 2008 Report Share Posted September 17, 2008 save £250 notes if ya set up with this company its free no £250 setup £15 a month and 2.99 % thats .9 % more but ya would have to take 25k on the cards before this affects your income .. protx offers free setup and not transaction charges !! Basically what im saying is theres better deals out there if you want to take cards Quote Link to comment Share on other sites More sharing options...
mr lee Posted September 17, 2008 Author Report Share Posted September 17, 2008 save £250 notes if ya set up with this company its free no £250 setup £15 a month and 2.99 % thats .9 % more but ya would have to take 25k on the cards before this affects your income .. protx offers free setup and not transaction charges !! Basically what im saying is theres better deals out there if you want to take cards Cheers jayward. Will have a good nosey through that site now. Going to try to explore all avenues possible prior to making any final decisions so any other options that people have or opinions are most welcomed. Quote Link to comment Share on other sites More sharing options...
Neels Posted September 17, 2008 Report Share Posted September 17, 2008 An opinion of a user/customer I'd make use of such an option. I can get a fair bit of work done (as soon as my wife wants it ), and I don't have to go through the process of getting a loan. Admittedly financing costs will be higher, but my time also costs money so for a medium size job, done as soon as I want it and without having to go and source, as well as get a loan, I would seriously consider such an option. Also, as Mung said - I have a level of protection built in (not that you wanted to hear that :-)), but it does provide me with a level of comfort I wouldn't have had on a cash deal My 2p worth Neels Quote Link to comment Share on other sites More sharing options...
p@cman Posted September 17, 2008 Report Share Posted September 17, 2008 (edited) We do quite a lot of trade through debit & credit cards. The Forum of Private Business recently helped us negotiate a better deal with the card processor and secure improved rates; so it's definately worth haggling on the rates the providers are offering you, as they may be prepared to offer a better deal. Good luck Edited September 17, 2008 by p@cman Quote Link to comment Share on other sites More sharing options...
starlight32 Posted September 17, 2008 Report Share Posted September 17, 2008 My mother was in business for over 30 years and started taking credit cards in the last 5.... Turnover up 15% more or less instantly. People definately spend more money in the retail areas when you have the option to pay by such. I personally will never take credit cards as I like cash,cash and more cash...Full stop. That way I find it alot easier to work out what I owe the taxman. Quote Link to comment Share on other sites More sharing options...
ME Posted September 17, 2008 Report Share Posted September 17, 2008 (edited) I have been through this situation this year. Rather than take the plunge with the machine & monthly charge etc, I got a friend to write us a program that uses Paypal as the merchant. The fact that we can take credit cards gets us no more work and I am damn glad that I tested the water before being tied to a monthly charge. Correct me if I am wrong, but you seem to think that being able to take credit cards will get you more customers or make you more attractive to customers ?. If you are looking to increase custom (as opposed to answering a payment problem) then you would be better off spending the money on joining a business networking group like BNI / placing an advert in the local paper / getting a nice website done and buy a domain name like www.decoratinghuddersfield.co.uk For a second opinion you could try this forum - www.ukbusinessforums.co.uk - there are people on there with their own businesses who will be able to answer your question from personal experience. Edited September 17, 2008 by LV Quote Link to comment Share on other sites More sharing options...
mr lee Posted September 17, 2008 Author Report Share Posted September 17, 2008 I have been through this situation this year. Rather than take the plunge with the machine & monthly charge etc, I got a friend to write us a program that uses Paypal as the merchant. The fact that we can take credit cards gets us no more work and I am damn glad that I tested the water before being tied to a monthly charge. Correct be if I am wrong, but you seem to think that being able to take credit cards will get you more customers or make you more attractive to customers ?. If you are looking to increase custom (as opposed to answering a payment problem) then you would be better off spending the money on joining a business networking group like BNI / placing an advert in the local paper / getting a nice website done and buy a domain name like www.decoratinghuddersfield.co.uk For the a second opinion you could try this forum - www.ukbusinessforums.co.uk - there are people on there with their own businesses who will be able to answer your question from personal experience. I am hoping the option to pay by CC will make our business a slightly more attractive option for someone who wants the works doing but can't realistically afford to have it done. I don't genuinly expect offering this option though to actually bring work in in large amounts. What I am after offering really is something none of my local competition offer. Our spending on advertising is a fair old figure already LV and in the past have found placing ads in our local paper tends to be rather hit and miss on returns. Our advertising is now mainly done in the one place that works for us and keeps work coming in steadily throughout the year. We are currently having a website built though and will no doubt end up paying to have that listed in the right places when it is launched. The idea to join a business networking group is something I will also look into and see what they do and how they work. P@cman - Cheers for that link. I will check that out tomorrow. Neels - The comments you made reflect the kind of customer we hope this option would be attractive to. Whilst I don't honestly expect to be inundated with work just by offering a different payment option, it would be good to have it in place for the times when people would like extra work doing or work they normally couldn't afford to have done. I really do want to have all options and opinions available to me before we make a final decision so really appreciate all comments from you all. Quote Link to comment Share on other sites More sharing options...
silver_pigeon Posted September 17, 2008 Report Share Posted September 17, 2008 I think you'd be onto a winner going the route of accepting Credit Cards mr lee..... In this day and age I think you have to look at the "gain" to the customer moreso than to yourself to get a good strategy!! With all the bonuses of using credit cards now like points and cashback, people are more likley to do that than part with cash and no return! Best of luck with whichever way you choose! Quote Link to comment Share on other sites More sharing options...
jonno 357 Posted September 17, 2008 Report Share Posted September 17, 2008 (edited) Are you a decorator Mr Lee? Jonno Edited September 17, 2008 by jonno 357 Quote Link to comment Share on other sites More sharing options...
ME Posted September 17, 2008 Report Share Posted September 17, 2008 What I am after offering really is something none of my local competition offer. There may be a reason for that ! We are currently having a website built though and will no doubt end up paying to have that listed in the right places when it is launched. I have 40 websites promoting my business. We get the majority of our new business from this now. All of my domain names are related to the search term that someone might use like www.decorator-yorkshire.co.uk, www.decorating-huddersfield.co.uk. It works for us & we are in a service industry the same as you. I was lucky to meet a guy at a networking breakfast who has helped us to get our sites to the top of Google for our search terms. His own website is still under development - http://www.b8solutions.co.uk/ but he is well worth a look. Quote Link to comment Share on other sites More sharing options...
mr lee Posted September 17, 2008 Author Report Share Posted September 17, 2008 Are you a decorator Mr Lee? Jonno Unfortunately. Should have decided to be a corgi gasman/plumber then I could print my own money. Quote Link to comment Share on other sites More sharing options...
ME Posted September 17, 2008 Report Share Posted September 17, 2008 Are you a decorator Mr Lee? Jonno Unfortunately. Should have decided to be a corgi gasman/plumber then I could print my own money. Does that mean that your missus has permanently "got the decorators in" ? Quote Link to comment Share on other sites More sharing options...
mr lee Posted September 17, 2008 Author Report Share Posted September 17, 2008 What I am after offering really is something none of my local competition offer. There may be a reason for that ! Which is?.....Besides being competitive and a will to succeed... We are currently having a website built though and will no doubt end up paying to have that listed in the right places when it is launched. I have 40 websites promoting my business. We get the majority of our new business from this now. All of my domain names are related to the search term that someone might use like www.decorator-yorkshire.co.uk, www.decorating-huddersfield.co.uk. It works for us & we are in a service industry the same as you. I was lucky to meet a guy at a networking breakfast who has helped us to get our sites to the top of Google for our search terms. His own website is still under development - http://www.b8solutions.co.uk/ but he is well worth a look. 40 websites? Why so many if you don't mind me asking LV? For the last 9 years I have generally done pretty well and being happy with what we have, however, with other decorators failing around us I want to try to offer my customers everything we can at the best possible price for the best job we can. I had honestly never thought about joining a business networking club/forum though but it will definately be something I seriously look into next week. (this week is a bit mad ..) Cheers again LV. Quote Link to comment Share on other sites More sharing options...
mr lee Posted September 17, 2008 Author Report Share Posted September 17, 2008 Are you a decorator Mr Lee? Jonno Unfortunately. Should have decided to be a corgi gasman/plumber then I could print my own money. Does that mean that your missus has permanently "got the decorators in" ? ??? Feels like it some weeks. Quote Link to comment Share on other sites More sharing options...
ME Posted September 17, 2008 Report Share Posted September 17, 2008 Which is?.....Besides being competitive and a will to succeed... There isnt any call for it... 40 websites? Why so many if you don't mind me asking LV? I has become an obsession. It is very addictive once you get going. Quote Link to comment Share on other sites More sharing options...
mr lee Posted September 17, 2008 Author Report Share Posted September 17, 2008 Which is?.....Besides being competitive and a will to succeed... There isnt any call for it... Hence my post. I know of two plumbers round here who offer CC payments and both will tell you they do okay out of it. How much truth is in that though is anyones guess. Could be being genuine or could just be saying it to save face to avoid letting on it's a waste of time. 40 websites? Why so many if you don't mind me asking LV? I has become an obsession. It is very addictive once you get going. Obsession? 40 though? *checks in phone book for a 'website builders therapy group* Quote Link to comment Share on other sites More sharing options...
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