(or, a brief sojourn through time is the only way I can make this point)
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| Why, yes, I did borrow this image from 1995. |
Today I want to talk about the differences between costs and
price and how those two factors stack up against each other in credit card
processing. What does that even mean? It’s quite simple, really, but I can explain
it better with an analogy than I can with algebra. Let’s pretend we’re at a furniture store for a
minute…
At IKEA
I can feel you cringing.
Hey, I’m on a budget here! We’ll
let you shop at Restoration Hardware in a minute. Anyway, we’re here at IKEA and I’m looking at
a chest of drawers. I see something that
looks pretty decent, does everything I want it to do, and it’s only $200. Before you ask, yes, I’ve shopped around a
little bit and this is the best deal I’ve found, so I’m pretty proud of
myself. I think I’m going to have to put
it together myself, but I’ll survive.
After doing a little work, I’ll throw this in my room where it will
proudly store all of my clothes.
Now, let’s turn the clock ahead five years. I know I didn’t tell you we were getting into
a time machine, but just ride it out; I swear it’ll be a good experience.
Five years later…
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| Don't worry, these are stunt doubles, not even from IKEA. |
Here we are, back at my house, and my dresser from IKEA has
moved around town a few times. I’ve used
it endlessly, and it’s operated tirelessly for me—well, as tirelessly as it
could. It’s quite banged up, and the
cheap black finish is scratching off.
Also, I didn’t tell you this, but two of the drawers have never quite
closed correctly, so the paint is really coming off around those edges because
of all the excess friction. If we take a
step back, this thing looks beaten. It’s a little embarrassing, actually, and if
I have company over I might have to cover it up just to save face. I guess it’s just the way things are, though.
Now, let’s go back to the present moment and, instead of
going to IKEA, let’s go across the parking lot to Restoration Hardware like you
wanted in the first place.
At Restoration Hardware
Now, we’re looking at some nice pieces of furniture, and we happen upon a new wooden dresser,
and…wow, it looks classy as hell. Really
nice veneer on the wood, really straight, and of course all the drawers are
perfectly flush with the body—and, I can tell this because the thing’s already
put together! I hold my breath and
glance at the price placard and my eyes bulge—it’s $600. You assure me it’s a good deal, though,
because—well, look at the quality!
You’ll have this thing forever, you assure me. I fret for a minute but ultimately succumb to
peer pressure, and you warmly reassure me I made a really smart purchase. I feel a little better as I watch the
complimentary shipping service guys wrap the chest up and load it into their
truck. The thing’s going to make my room
look awesome…
Now, back to the time machine, obviously.
Five years later…
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| Yes, it is. |
Well, when I first got the dresser into my room, it was
pretty fantastic, and I guess it shouldn’t surprise you that, for the price,
it’s held up incredibly well. I’ve had
to move it a couple of times, but it doesn’t have anything but superficial
scratches on it. All the hinges still
work well, and none of the finish is flaking off, due in part to the fact that
there isn’t any excess friction from shoddy workmanship (my own in an alternate
scenario!). I haven’t even thought about
replacing it—and, why would I? It’s an
awesome piece of furniture, and it perfectly complements my room.
Okay, one more
trip back to the present. This is where
we heroically apply what we’ve learned to the present moment to change the
future for the better. God, I should be
a screenwriter. Anyway, I’ve learned
that buying furniture isn’t something to sneeze at—it’s more of an investment
for the future. My RH dresser hasn’t
crapped out on me once, and I don’t expect it to unless my house burns
down. I’m in pretty good shape.
I haven’t mentioned credit card processing ONCE yet
And here you thought you were going to fall asleep at your
desk. Not so this time! But, like all good things, this one must come
to an end too. The reason I told such a
flowery story is because I like doing stuff like that, but, the story’s meaning
really can be applied to picking a suitable payment processor. So many times—in fact, the vast majority of
times—merchants in need of payment processing go shopping at IKEA. It’s the only place they ever shop, and, if the folks over there or any other big bin store come out with a better-priced chest of
drawers or a lamp, merchants are sure to at least give it a once-over and
probably even take it home because, gosh, it’s just so cheap. Processors might cold-call you and remind you
you can come to Restoration Hardware and you’ll have an attentive salesman
there who isn’t bogged down with
putting inventory away, who can tell you exactly how their special couches are stitched,
the thread count of the sheets on their display beds, and the kinds of wood
that go into their armoires. “But,” a
merchant might counter, “What are your rates?”
The sales guy on the phone answers, and the number he quotes makes the merchant a
little flip. “Don’t even bother me with
that nonsense,” the merchant might say, and hang up the phone immediately. “Serves him right for trying to swindle me
out of my money,” the merchant says to himself.
The thing the merchant does not realize, and what you now do
realize by now, is that choosing the choosing the right vendor for your company, much like buying
furniture, is a solution for now and an investment for the future.
Not next year, not something to tide you over till you’re out of
college, but…the future. When you shop
for payment processing, you’re not just shopping for the lowest price or lowest rates: You’re shopping for low costs, a solid company behind the services offered, a good pricing plan for those costs,
technology that fits your business goals, a more-than-adequate support
team: a solution that can grow with your business. You may very well end up paying a little more than you would have, but your choice will pay back your business in spades. And, you might even take pride in your choice like you'd take pride in buying a piece of furniture that really improves your room instead of simply serving a purpose until the next plebeian piece of furniture comes along.
Jeremy
Disclaimer: I shop at IKEA. I take good care of my furniture but I know very well I'll have to replace it if I ever share my space with anyone else permanently. That's analogous to, say, accepting over $30,000 monthly in credit card payments.
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