How to Sell Cash Discounting Programs
The Selling of the Cash Discount Program is getting the attention of business owners all over the world for good reasons. It is the type of credit card processing in which the merchants give the discount to the customers who choose to pay with cash while implementing the payment processing fee to the customers who pay with credit or debit cards. So after understanding what is cash discount, let‘s find out together How to Sell Cash Discount.
How to sell cash discounting programs
As mentioned above, cash discounting gives discounts to customers who are paying by cash instead of credit cards. Ultimately, cash discounting gives you a higher profit margin. However, this would be a simple explanation, to help you understand clearly, let’s consider a few examples. Traditionally, if you wanted to make a deal with a store that has $10,000 present in volume while it pays $300, you would have to offer the store something that would attract it. Therefore, there’s one possibility of making a deal by lowering the fees, you would say, I can offer you a $250 deal instead of $300. If you want to make more sales, reduce the account’s profitability. However, if you have cash discounting in mind, you would lower the fees. This way, the account's profit would be $50 instead of $100 since you had offered the fee reduction by $50 to make sales. When you offer Cash Discount Credit Card Processing, you can say, I will lower the fee from $300 to zero or almost zero for a month. You can also say that I will give a discount to people who pay by cash, while people who pay by cards will pay more than the actual value. This way, we get some extra money that the customers are paying.
Another example to explain this would be a shop that is selling hats at a price of $10 each. The POS notice says that we offer a discount for cash payment, and the shelf price of all the items represents that discount. But when people pay with a card, they will pay, suppose, 50 cents more means $10.50 because the payment processing fee is 50 cents for each credit card transaction. You can notice that the margin is being increased this way. Moreover, the charges of the processor will be equal to zero as it also charges 50 cents, while we’re getting 50 cents extra, they both cancel out. Since the customers' credit card processing charges are being paid, you are receiving a higher margin.
Consider another example; a merchant is doing $10,000 in volume while paying $300 in processing cost. The ISO Cash Discount Program would lower the fee to $250, but the agent would go up to $400 due to cash discounts. He/she might say, ‘we‘ll do the maximum percentage value of cash discount, which is 4%’. So the merchant will need to pay him/her $400, but the merchant will collect this amount from his customers. This way, you will receive more profit margins by cash discounting. The merchant is not concerned about the credit card processing cost because the cost passes on to the customers.
There are not many Cash Discount Merchant Services processors who offer the Best Cash Discount Program. That’s why sales professionals need good program equipment and business tools for cash discounts. In these cases, the rental fee or terminal lease might be included. Take an example of the most popular company Ingenico whose cash discounting program is a lot more complicated than you might think. So if the sales rep says, ‘I’m going to charge $$ for the POS terminal if it does cash discounting, it would justify his/her statement. Here, we don’t relate it with the bizarre deal like $99 a month for 5 years lease on a VeriFone vx520. But you can have a good lease as the POS terminals programming are not as easy as you think. If the merchant is paying you $400 a month, you will pay zero, and you can also add the$29.95 a month in the lease or rental fee for vx520.
How to sell cash discounting is tricky
When you are going to offer Merchant Cash Discount, the key factor that leads you to the path of success is to believe in it before trying to Selling Cash Discounting. First off, you need to understand fully what the cash discount is. You can’t sell something you don’t know about and believe in. Selling the Cash Discount Merchant Processing is a great idea to go, especially when you want to pursue your career in the Cash Discount Merchant Services. You can also a lot of things with it like sell Poynt terminals, flat rate, clover, and many others.
Decide the model that you will use with different business types
Cash discounting can more difficult for some businesses like restaurants, where people get the bill receipt and add on the tips. For instance, a burger or pizza shop with hundreds of daily visitors would not be a good candidate when it comes to offering cash discounts. But it does make sense when it comes to retail businesses where you can explain the merchants about the cash discount program. You can say that we have a program that takes your payment processing charges down to zero. Explain to the merchant what a cash discount program is and how it is beneficial for their customers like you can say, we help set up this new program, which provides a discount to the customers who choose a cash for payment rather than a credit card. However, you do not need to lower your prices to offer a discount. We charge the credit card processing fee to your customer who pays with a credit card rather than charging those fees from you. It means the customers who choose to pay with a credit card will pay more, and the discount will be your current sale price. This allows the customers to save you money by choosing cash for payment or cost you nothing extra by using the debit card or credit card. This is the right way to sell the cash discounting, but don’t forget that you have got to believe in it to sell Cash Discount Agent Program.