What you Need to Know about Pricing Structures on the Market
A sales force is the life blood of every company. They are the people that make the companies grow through new business opportunities and help the businesses move forward. Every December sales teams across North America celebrate the number of sales made and hard work throughout the year and every January they all face the same situation – last year’s success stayed in the past and the number of sales on the board is at zero again, so they get on the phones and start making calls and work leads with twice the energy they had back in December.
What it means for you as a merchant is that in January you will start getting even more calls with all kinds of offers for all kinds of services. It is a normal practice and this is how many businesses acquire new clients. There are some great knowledgeable, honest and sincere sales representatives out there and there are others that are not. That’s why it is so important to understand what is being offered and to be careful and make sure you are dealing with a real professional who understands the industry. This is where the Relationship Management Team comes to your rescue.
There are at least 4 pricing structures on the market, so it is essential to understand which pricing plan is being discussed to be able to compare apples to apples and oranges to oranges. Let’s take a simple meal combo as an example.
We have one meal which is Burger+Salad+ Soft Drink
Here’s how this meal could be charged if it was a payment processing industry:
1. Burger Meal = $10
2. Burger ($5) + Salad ($3) + Soft Drink ($2) = $10
3. Meat ($3.5) + Bun ($0.50) + Vegetables (in burger and salad) $3 + Soft Drink ($3) = $10
4. Cost of what was paid to the grocer, butcher and baker ($8.5) plus mark-up ($1.5) = $10
5. Cost of rent allocated to the meal + Cost of the staff salary + Cost of Food
We could go even further and split the price per ingredient, but you get the idea. Some plans would say – this is how much you are paying for vegetables, but it won’t explain that those are the salad vegetables and that you have to pay extra for the vegetables in your burger. The analogy here is that there are multiple ways to calculate and bill the same fees in the payment processing industry, so you need someone knowledgeable to analyze the offer for you and make sure you are not trying to compare apples to oranges.
The payment processing pricing plans are very different and at times they could be complex and confusing, but we are here for you to explain and guide you through the process, so you could make an educated and beneficial business decision. We have years of experience and we’ve seen everything there is to see when it comes to pricing plans and competitive offers.
Talk to us should you have any questions or if you receive a competitive offer. We are true experts in our industry and we are here to help you.