Persistence and Patience Create Profit

Persistence and Patience Create Profit

Feb 16

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Probably 9 out of 10 statements that I receive from brand new agents have pricing with a competitor that is unbeatable. I have noticed this for a long time and used to think it was a coincidence or some form of “beginner’s bad luck” but, I have since learned why this happens. A new agent is not very good at obtaining statements or making a good initial connection with the merchant. So, they go out for a week and the only statements they get are from merchants that give their statement to anyone. This means they have probably given it to many other sales reps in the past and this means that they already have a very low price. So, how can you use this knowledge to your benefit?  Basically, merchant’s who willing give up their statement are constantly seeking a lower price and probably already have a very low pricing structure.  Conversely, merchant’s who are not willing to give up their statement are not as cost conscious, have not received very many bids and are usually paying a much higher price. Here are a few tips.

1. Realize that when you first start out, most of the statements you obtain will be from merchant’s who may already be getting an unbeatable price.  In other words, when you walk in, introduce yourself and the merchant says, “Sure, you can give me an analysis!” Don’t get too excited, they also said that to the last 10 reps that came in before you, placing you in a highly competitive bidding situation.  Don’t let this discourage you, rather let it motivate you to get better at obtaining statements from those who are tougher and who likely need our discount and savings much more.

2. When a merchant is difficult or nearly impossible to reach or will not give you the time of day, realize that this merchant is probably paying a very high price for their processing and if you could get the statement, you would probably save them a fortune, this is because they never give their statement to anyone, so they have the same price they had 10 years ago.

3. When dealing with these merchants, be patient but, persistent. If at first you don’t succeed in getting the statement…try, try again! LOL Don’t end any conversation on a bad note and try to keep the relationship open at all costs. You should have a list of “Interested” merchants that you visit every month to build the relationship and trust.  If a merchant is never available, keep walking in and keep trying to reach that person, chances are, none of your competitors have been able to reach them either so, the first person to reach them will almost certainly be able to offer huge savings and win the account.

4. With tough merchants, use the following lines in your pitch:

Agent: “Who are you using for your processing?”
Merchant: “XYZ Processing, I have been using them for a while and I really like them, I am not interested in switching.”
Agent: “I respect your loyalty and I am not trying to steal you away form a proven provider today however, let me ask you something, when is the last time you had a detailed competitive bid completed?”
Merchant: “I don’t remember.”
Agent: “Keep in mind that if it has been a while since you received a competitive bid, a lot has happened in our industry in the last few years. The average merchant is paying 25% to 30% less for their processing than they did 10 years ago, this is because our industry has changed and new legislation has really lowered our cost structure. I’m sure you wouldn’t go more than a year without checking competitive pricing on your (insert the name of some product or service you can see they are using like food products or retail items, etc.) and credit card processing is no different. I tell you what I will do for you (pull out a copy of an analysis spreadsheet) I will provide you with one of these free, detailed cost analysis so at least you know if your current provider is adjusting their price to keep up with the industry and I will show you how their price compares to ours, could I at least do that? (The idea is to make it seem like you are going to actually hand this analysis to them)
Merchant: “Sure, you can give me one of those.”
Agent: “Great, this analysis here is actually for XYZ Company down the road and we were able to save them X amount per year. Anyway, the only thing I will need from you is a copy of a recent processing statement, do you have one handy or should I swing by to get that later in the week?”

I hope these tips help!
James Shepherd
james@multi-merchant.com