While this issue isn’t all too common for gyms or brick-and-mortar fitness businesses, there are still quite a few startup fitness trainers and health coaches that don’t yet have the capability to process credit cards on the spot. But I’m here to tell you, my friends, this capability isn’t only critical for doing business in 2015, it has also become an incredibly accessible and inexpensive payment option to offer your fitness or coaching business’s clients.
So here are 5 big reasons why, if you haven’t yet integrated a mobile credit card reader into your business, then now is the time to get that show on the road.
#5 – Trending: Mobile Readers Are the Future
Mobile credit card reading technology has been available for quite a few years now, but it did take some traction to get the trend off the ground. However, even in 2012, well-established Fortune 500 companies were already in the process of switching to these new mobile point-of-sale systems. According to Celeste Smith of Phys.org, the mobile payment trend has been rapidly expanding beyond garage-level Etsy businesses, moving its way up to international economic centers of gravity …like Starbucks, for instance:
Recently, Starbucks signed on with Square, one of the more popular devices in the market. That means 7,000 Starbucks stores will process U.S. credit and debit card transactions with Square – thus linking the card reader with a major retailer.
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Simply put, it’s looking like mobile credit card readers are here to stay -making this an ideal long-term evolution for sole proprietor fitness trainers and major gym franchises alike.
#4 – Options: Freedom to Choose Which Commerce Company Works Best
Perhaps, the biggest reason why so many companies are flocking to mobile credit card readers isn’t just because they offer freedom and convenience -but also because the current tech environment has provided the commerce industry with fertile grounds for innovation. That’s why these mobile reader startup companies are popping up everywhere.
Nowadays, the competitive commerce company market has certainly come a long way from the rate-jacking that merchant service company conglomerates once did. There are just far too many players in the game for that to happen in 2015 …and that’s good for all of us!
But how exactly does this provide your fitness business with an advantage? Well, just take a gander at how many mobile credit card reader companies there are to choose from.
Square
PayPal
Amazon Local Register
Shopify
Intuit Quickbooks Payments
ProPay
Chase Mobile Checkout
PayAnywhere
ROAMpay
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And the natural effects of healthy market competition will keep the prices low in any industry. For instance, let’s move to number-three…
#3 – Cost-Effective: Inexpensive Solutions With No-Wires-Attached
One of the biggest problems with conventional merchant services is that these companies’ services are PRICEY, and they tend to be a PAIN to work with. For instance, while the same average 3% transaction fee might apply for mobile credit card readers, merchant account companies will take quite a bit more than their fair share in comparison.
According to SmallBusiness.com, not only will they hit you with an obscene minimum transaction fee, but they tend to charge a membership fee of $10/mo, a chargeback fee of $10-20 for returned items, a 20 to 70-cent fee for every transaction (on top of that 1-4%), $120-1000 for a technologically ancient card reader that’s umbilically attached to the wall …and what’s even more annoying… they run a credit check to figure out how (or if) they’re going to do business with you.
Hey I get it: if fitness trainers don’t know about these new mobile card reader companies, then I can’t blame them if they aren’t too keen on adding credit cards to their payment options. Acquiring merchant services for most small business doesn’t seem to make a great deal of sense -but mobile card reading companies have placed credit card payments squarely within the realm of possibility.
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But then, that’s why I wrote this post in the first place.
#2 – Integration: One System Means Optimal Simplicity
This is yet another HUGE reason why I love mobile card reader companies, especially ones like Square: they’ll integrate seamlessly with your online store. However, one issue that small online businesses sometimes run into, is that if their website is self-hosted, and their shopping cart utility isn’t run through a third-party gateway like PayPal -then this often means that the company must (brace yourself for this) use a merchant service to obtain credit card processing capabilities.
But again, this is where mobile credit card reader companies did it right. Even if your site is self-hosted, then if you were to use a WordPress plugin like WooCommerce, then you’ll have the option of using commerce company payment gateways …like PayPal and Amazon Payments. And these days, those gateways aren’t nearly as confusing as they once were.
Most of these mobile reader companies were originally started to provide credit card payment processing capabilities to online retailers and small eBay/Etsy-style businesses. So you should have absolutely no problems with integrating your fitness business’s online store into your existing mobile point-of-sale system whatsoever.
And it’s really nothing new to these commerce companies, because online payments were originally their bread and butter from the get go.
#1 – Convenience: It’s Worth the Switch
A recent post from the New York Times nailed the issue on the head when they discussed one certain case of an NYC chiropractor, who decided to switch from his merchant account to Square. According to the story, his business saved thousands of dollars as a result:
“Werner’s old credit card reader charged about 1.7 percent for each swipe for most credit cards, plus an additional 15 cents. Swiping an American Express card cost about a percent more. He estimates that he’s saved several thousand dollars since making the switch.”
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But that’s not all. If you were to read a little bit further, you’ll find that this New Yorker business owner wasn’t the only one, who received a benefit from the new payment system…
“The device has also been a hit with Werner’s patients, who like that Square emails them receipts. “My patients love it,” he says.”
Not only did his chiropractic business save money, but his customers were also happy with the new convenience options that the Square reader offered. From emailed receipts to the fact that transaction signatures are kept in the cloud (and not in some envelope under the counter) -the reasons for ditching his merchant services company were obvious.
But this brings us back around with a valuable lesson for fitness pros: customer convenience pays in more ways than in just currency, and its revenues continue beyond just that of the initial transaction. Customer satisfaction isn’t a cost; it’s an investment.
The Problem With Out-Dated Point of Sale Systems
These days, it’s becoming less and less common to happen upon establishments that aren’t able to process credit card payments. However, when I stumble into one -and I’m standing there with an unpurchased Vitamin Water and a perfectly good Visa card, only to hear the cashier speak the phrase, “Oh, I’m sorry, we don’t take credit cards here”- there are two thoughts that pop into my head. Between the time I excuse myself from the checkout counter and getting back into the car, I’m thinking…
“Why, in the 21st century, does a brick-and-mortar company not take a universally popular 50-year-old form of payment?”
“I’m bummed out for me, because I just wasted my time, and I’m still thirsty for my lemon-flavored vitamin water …and I’m bummed out for this business, because they couldn’t even take the money that I was just about to hand them.”
Unless there are other circumstances involved, this very issue is a business-killer. Businesses thrive when they can connect with their target market in as many ways as possible. Wal-Mart has been the king of retail for decades, but Amazon.com is already showing signs of overtaking the shopping behemoth. Why? Amazon was largely able to match Wal-Mart’s, cash cow: obscene, one-stop-shopping convenience. Now, not only does Amazon provide a Wal-Mart-style buffet of practically every mainstream and fringe retail product in market existence, but the kicker is that now -customers have the additional option of NOT leaving home to go get it.
It was Amazon’s ability to connect with their customers, not just their prices, which gave them the edge over Wally World. In the 21st century fitness business, we’ve got to think like Amazon.com.
We’ve got to run our companies to connect with our target market: the clients of 2015, who expect commonly available convenience through technology. As they most certainly should, because this tech-based convenience isn’t difficult or cost-prohibitive for companies to acquire these days.
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The post 5 Reasons to Switch to a Mobile Credit Card Reader For Your Fitness and Coaching Business appeared first on John Spencer Ellis.