Cash Discounting - The Opening Pitch and How to Sell It
HTML-код
- Опубликовано: 21 окт 2024
- Get merchant sales training at www.ccsalespro...
The Grand Finale of this series - creating and presenting your opening pitch. This episode contains the nuts and bolts of how to sell cash discounting. The culmination of my series will help you get to the six-figure income this year while saving your merchants big money! For more training resources visit: ccsalespro.com/
James Shepherd is the CEO and Founder of CCSalesPro, the leader in merchant sales training and technology.
Get one on one coaching sessions with James through our 6 week jump start program. Visit www.ccsalespro... to learn more.
We offer custom video training creation for ISOs as well as a branded learning management system to train a team of agents. Visit www.ccsalespro... to learn more.
Our Statement Analysis Tool provides the ability for instant, on the spot analysis and proposal. Visit www.instantquo... to learn more.
Join our Pro Club for Individual Merchant Sales Agents and get a monthly workshop session with James as well as access to our entire video library. Visit www.ccsalespro... to learn more.
Connect with James on LinkedIn / ccsalespro
Follow CCSalesPro on Facebook / ccsalespro
Listen to the Merchant Sales Podcast / merchant-sales-podcast
I subbed. Like the approach of just having a conversation vs sounding salesy.
Excellent approach. Nicely pitched. I also say, "It's not completely free because there are costs associated with hardware, software, etc. that has nothing to do with the cost to process a customer's card. But it equates to about $50 a month over the course of a year or so." I also say after the prospect tells me what their ballpark savings might be that "customers simply do not complain as most merchants tend to fear, but I'm not going to stand here and claim that cash discounting is for everybody." This gives the merchant an opportunity to voice those concerns after they've seen the dollar signs so that I can address objections rather than let them fester. One of my four deals was closed on a first meeting, a deal that is proving somewhat problematic. So I like to make sure the merchant is clear, truly understands the cash discounting approach for smooth transition and how to handle their staff and customer confusion when and if it comes up. Stating the program isn't for everyone not only makes you sound genuine and credible, but it also has a sort of dog training effect: you let them smell the meat/treat but you walk away and don't push it on them or give it to them without performing. The merchant (and dogs if you're training dogs) will to come towards you with interest instead of you trying to coerce them to the desired outcome.
Great content
But why would a customer feel good about paying 4% more for using a credit card? When he can buy the same from another vendor who doesn't charge the service fee??
The Durbin Amendment
Visa’s statement squares with definitions found in the Durbin Amendment as published on the Cornell Law School website, which states that payment card networks will not restrict business’ ability to offer a discount for cash and check payments. It defines “discount,” stating: “The term “discount”- (A)means a reduction made from the price that customers are informed is the regular price; and (B)does not include any means of increasing the price that customers are informed is the regular price.”
This section clarifies that a discount must be a reduction in price - not an increase in price. Some processors may argue that the “regular price” is the cash price. However, if the regular price is the cash price, then no discount on the regular price is being offered.
What do you believe the term in-kind incentive refers to?
Where can I find where the consumers don't say anything 99.2%? I would like to make a copy of it for the Merchants I visit.
I would like this study as well. Did you ever find it?
Excelllent information,
Hey James, I'm just starting out in this industry and enjoy the videos. I'm with a company called Versatile Merchant Solutions and they've been doing cash discount since cash discount started. Does the business owner have the option to always just go with traditional processing? So would it be a good idea to throw in "Mr. Merchant, you can try our cash discount program for 30-60 days to see how it works for your business and if it doesn't work or you don't like it, than you can always revert back to traditional processing with us. With that being said, you'll still be getting our features and benefits with the POS system being fully integrated with quick-books, inventory management, time management, customer tracking, etc.."
That is a good pitch but you need to make sure your processor allows / offers this
@@CCSalesPro Gotcha thanks James!
are you still in the industry? Id like some advice if this is a good industry to make $ in.
i subbed as well thanks james 8th
There are significant differences between "cash discount" and "surcharging." Surcharging is outlawed in 11 states, and where legal, can be applied only to credit card sales (not debit), must be limited to the cost of acceptance (discount fee), and can be done only after giving 30 days notice to the card brands and a merchant's acquiring bank.Cash discount programs,. by contrast, involve the addition of a "service fee" to ALL sales, and then the removal of that service fee if payment is by cash. Many industry observers say this circumvents the spirit of the Durbin Amendment, which made cash discounting possible, but this approach has not been tested in court or disputed by card brands. See consumermediallc.files.wordpress.com/2017/01/durbin_amendment.pdf
How do you win a customer back from a banks pos ?
+Peter Career offer your own POS and get them quickly before they get used to the new system
Peter Career FYI most banks are only third parties or middle men which means there are at least two parties collecting fees not to mention customer service challenges (which party to call?). Chase is one of the only banks that owns their own processing company. Many use First Data to process which is easy to see if you know what a FD statement looks like.
The way the Cash Discount Program was sold on this video is FALSE!! Wording does NOT make the difference between Surcharge and Cash Discount. No matter how you word IT, it's STILL a Surcharge. The ONLY way it can be a Cash Discount is by ALL the prices in the Store is at a CREDIT CARD Price!!!! READ THE LAW
What is the correct answer to this?
This is the big debate for sure. Keep in mind that currently there are over 100,000 small business owners doing it the way I describe in this video and it is working great!