Starting UP

[The Underpinner]

Hi Folks,

After a couple of years part time framing from home( & a few training courses) , I am almost ready to venture into the world of full time framer. I have already got my premises based in our local business park (it is a framing workshop rather than gallery), and gathered the necessary basic equipment to get me started, morso,cassesse,ultimat etc; also spent a fair wedge on my initial stock materials.
My main query is regarding POS payment; what percentage of customers still pay by cash compared to credit/debit card? Do you think the lack of card payment facilities would have a serious effect on a start up venture?
I would sincerely appreciate your views.

Allan
(The Undrrpinner)

[Roboframer]

Do you think the lack of card payment facilities would have a serious effect on a start up venture?

Definitely!

People expect to pay by card these days - they don't carry large amounts of cash around. How much do you use cards yourself?

OK there's fees and charges but there's pro's too (apart from allowing customers to purchase as they can anywhere else with similar price tickets to us) like having the money credited to your account pretty much instantly and less form-filling when you do have to pay (cheques and cash) in to the bank.

[Not your average framer]

I don't have any credit card facilities, but there are three cash machines only about 150 yards down the road.

If there are not cash machines close to you, then sooner or later you will need to consider getting your own credit card processing facilities.

There are different sorts of deals available for such facilities and all sorts of aspects to these which you need to find out about. There are a lot of forum members who can give advice and make suggestions, based on the own experiences. I suggest that you ask some these members to advise you.

[The Underpinner]

Thanks for the quick response,
As there are no cash machines on the business park, looks like it will be wise to look into the card terminal; my local bank appears to offer a solution through a third party business. Not quite sure whats involved in a merchant account, but I'll find out as soon as I visit the bank I'm sure.
Anyway many thanks again,

Allan

[Jonny2morsos]

I would definitely advise against taking whatever deal the bank offers you without checking the market first. Banks often tend to think of you as a captive customer and give you a poor deal rather than reward loyalty. As soon as you borrow from a bank they have you by the short and curlies so avoid bank debt if at all possible.

The Federation of Small Businesses have an arrangement with with the Co-op Bank and it might repay the membership fee on their deal. The Fine Art Trade Guild also have a deal through The Bank of Scotland and again might be worth looking at if you consider the other membership benefits worthwhile.

We probably only take about 10% of our sales in cash the rest is card payments with a few cheques here and there. Cash is fine but it does need banking and cheques are a pain due to the paperwork. With card payments it just goes into your account with no form filling and no trips to the bank. OK a bit is deducted but just build it in to your margin. Everybody shops with plastic now so keep up with the times.

We are also on an industrial estate but mostly I consider it an advantage as the rent/rates are about a third of high street locations. You will need to attract customers off the high st and taking card payments shows you offer the same facilities, but let people know. Usually you get a set of stickers showing what cards you accept when the terminal arrives but ask for some extra ones and stick them anywhere they can be seen. Customers prefer to be told rather than ask.


We don't take American Express as the commission is much higher. I just got an invitation to apply for an Amex card and it offered 5% cashback! Personally I don't feel comfortable with making my other card customers subsidise the Amex card holders but if you are in an affluent area you might not have a choice. Amex customers always have an alternative card to us anyway.

To answer your original question...Yes I think it will hinder you so go ahead and get a terminal.

John.

[Roboframer]

We take Amex - we don't see many though - don't know why, maybe card holders just don't expect it in ye olde village, the ones that discover that we do though (signs all over the place, but no-one reads that stuff) are always impressed - and impressing is what we like to do.

I'd deal in salt and camels if that's what was hot!

[prospero]

I definitely agree about not automatically taking the Bank deal on CC processing. For years I used the old knuckleduster machine, but the banks don't like them - hence the exorbitant fees (nearly 5%). Couple of years ago I decided to bite the bullet and get a terminal. The deal I eventually went with was 25% less rental than the bank deal and better rates. Plus..... as my nearest bank branch is 16 mile round trip, the terminal rental is well offset by savings in time and petrol costs.

There is also the customer impulse factor. If they have a card they can pay there and then. No chance of second thoughts on the way to the cashpoint. (up until fairly recently the nearest cashpoint was 8 miles away as well......)

[The Underpinner]

Once again, many thanks for the continued response, all very good advice. I will definitely be comparing the various options card terminals based upon the advice given. Looking forward to opening to the public in the next few weeks, although the current weather conditions are a bit of a nuisance.

regards
Allan

[LeFrisp]

although the current weather conditions are a bit of a nuisance.

It is a bit like a scene from Narnia down here as well...

Im considering this as I plan to do a few days at shows etc. and as Im just starting out form my spare room Im not sure that hiring a machine will be cost effective just yet. However if im doing shows not having this facility will be severely detrimental to sales. anyone know anything about mobile terminals and whether you can hire the by the day / week>

[The Underpinner]

Started doing a bit more research after beinthe heg pointed in the right direction by the forum members; if its a mobile terminal you require, theseb are available for short time hire (7 days+) from the likes of streamline merchant accounts whom appear to be something to do with the RBS. It's now down to finding the right deal.

regards
Allan

[Nigel Nobody]

I don't have any credit card facilities, but there are three cash machines only about 150 yards down the road.

If there are not cash machines close to you, then sooner or later you will need to consider getting your own credit card processing facilities.

I have a terminal which only costs about $25/month and less than 2%on credit cards, 25cents on each debit card transaction. A very small price to pay for my convenience and my customers convenience.
More than half of my card paying customers use credit cards, not debit cards, so having a cash machine nearby would be of little use to the majority of customers who use cards. Many people prefer to use a credit cards because, like me they get award points from them for airline flights etc.
I also would not like to inconvenience my customers by asking them to go to a cash machine nearby!

[Dermot]

We take Amex - we don't see many though - don't know why, !

You may start seeing more Amex from corporate type customers a friend of Jean’s is starting with Amex later this month in the UK to head up their marketing and to more or less re-launch Amex in the UK.

[Dermot]

Check out Realex they are now in the UK and France, big CC processor in Ireland with a great reputation

http://www.realex.ie/about-realex/office-locations

Realex Payments London
1 Lyric Square, Hammersmith, London W6 0NB
Phone: +44 (0)20 3178 5370 | Fax: +44 (0)20 7691 7264

[Roboframer]

More good things about cards - phone/email sales and minimum spends. Most places have a minimum spend for cards; ours is £5 and we sell lots of nick-nacks!

So, someone brings a load of bits and pieces up to the counter and it all comes to £3.20 (or whatever) - they produce a card - "Sorry minimum of £5 on cards" 85 out of 100 go and find more stuff; the other 15 will either rifle their pockets/purses and get the shrapnel together, or go to an ATM, or go and buy some groceries and get cash back. We don't do cash back.

[silvercleave]

Alan

You could try paypal virtual terminal, no long term contract, see

https://www.paypal-business.co.uk/?mpch=ads

Best of luck

Ian

[philipsheldon]

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