In this video, I'm going to talk about how to sell merchant services to pizza shops.
You might say, "Wow, that's really specific.
Don't you mean quick service restaurants?"
No, I mean pizza shops.
Pizza shops are like their own thing and they are very different.
I'm going to talk to you about a couple things.
One of the themes you are going to hear throughout this mini series is that I am trying to teach
you how to sell merchant services to a pizza shop.
Are there some other services that can go along with that?
Absolutely, you know web design, online ordering, point of sale systems.
I'll talk a little bit about those, but the key thing to understand and this is a
mistake I see sales people making a lot is that they feel like it would be easier if
I sold websites.
It would be easier if I sold this.
Maybe, maybe not, but the thing you have to understand is if you try to sell something
else, it's going to be much harder to sell merchant services.
You want to lead off with the merchant services in some way shape or form, so that you can
actually get the sale.
Then you can add these other things on.
If you are like, "I actually want to pitch websites."
Then you are watching the wrong video because you need to watch how to sell websites to
pizza shops.
That's not what this is about.
I have a web design company.
I've sold websites to pizza shops, but this video is how to sell merchant services to
them.
One of the key things I can tell you right off the bat is, get focused on your end goal
and then reverse engineer what you want to have happen.
If you are trying to sell merchant services to pizza shops, then think about how to do
that.
Don't think about, "Well, let's see.
I can sell a website and then maybe I can sell a few of these and I can sell merchant
services."
Okay, then you are trying to sell websites.
Sell merchant services to pizza shops.
This is a video on how to do that.
What is the challenge that they face?
There are several of them.
I think these videos are going to be super profitable for you because they are so in
depth with these specific problems.
I don't think I've ever talked about much of this stuff in any of my content before.
The number one problem that pizza shops face in terms of payment processing is the per
transaction fee being too high.
This matters both for pin debit and it matters for check card, credit card transactions.
The per item fee really kills them.
For those of you who don't know anything about the Durbin Amendment, you might want
to research that a little bit so you can talk to them about this.
Pizza shops are one of those business types that really got screwed when they came out
with the Durbin Amendment and had that 22 cent per item fee on all the check card transactions
because pizza shops do a lot of $10 to $20 transactions and guess what?
They have to pay 22 cents every time they do one of those.
Twenty-two cents of $10 is 2.2% right off the bat without even anything else, no percentages,
no added fees from the processor, no monthly fees, whatever.
That was a big deal.
You need to check with your processor and find out what is the lowest you can go on
the transaction fee.
Be careful, because obviously all the profit is also in the per item fee.
When you look at a statement from a pizza shop, the first thing you ought to look at
is the transaction or per item fee.
You can really talk to them about that.
In your opening pitch, you can say things like, "The reason I'm coming by today
is I have a special program for pizza shops.
Here is our brochure about it.
We believe that pizza shops have a unique set of challenges, when it comes to accepting
electronic forms of payment and we cover those in our special pizza shop payment processing
program."
That's the pitch you can use, and you can tell them, "The first challenge that every
pizza owner faces is these per item fees.
A lot of times, people who are less experienced in the industry will start talking to you
about your percentages or your non-qualified rate, or whatever, and those things do matter
a little bit, but the most important thing is what you are paying per item because you
have smaller transaction sizes, and so that per item fee will absolutely kill you, if
you don't get it as low as possible.
The good news is that our program brings it down as low as possible."
You can go into all your value propositions.
The per item fee is a huge deal for pizza shops.
You've got to be alert and watching that.
You got to know what you can do when it comes to pin debit and when it comes to this.
Are they taking pin debit?
A lot of times you'll miss this.
You are looking at the statement.
They may have a different statement for pin debit.
If they are taking pin debit, they might be doing 20%, 30% of their transactions on pin
debit.
I've seen pin debit per item fees of 50 cents in a pizza shop, literally 50 cents
every single time they enter a pin number and do a pin debit transaction.
That's really high and it is killing their profit margin.
On a $10 order, that is 5% of their total revenue is going just for that one fee.
So look at the per item fees.
That's a really big thing.
The next thing that they have a huge problem with maybe, depends on their set up technologically,
but from an operations perspective, you've got to understand that pizza shops have a
huge problem with these long lines.
When people come in, again I don't think I've ever talked about this in any of my
content, but it is a huge problem for pizza shops.
When people come in, there is like a long line at lunch time.
There is like two or three times a day, where business is booming.
If they do a lot of delivery, they have all these phone orders coming in.
Maybe they deliver to businesses.
They are calling them around noon every day.
There is a couple things that you can do about that to offer some unique solutions.
The first thing that you definitely want to do is you is you want to pull all of the phone
sales off of the terminal and onto a gateway.
You need to have set up for them something like an authorize.net gateway and say, "Look,
Mr. Jones, all you need to do, do you have a laptop or an Ipad or something?"
They are going to be like, "Of course."
They always have a computer, just like when you go to work you have a computer.
Business owners at these pizza shops have a laptop.
They probably even have a desktop there somewhere.
They've got a computer or tablet of some kind.
You need to set them up with a gateway.
Talk to your processor.
Whatever gateway they use is fine.
This is not a huge thing.
They don't need to use some really advanced gateway.
Authorize.net is the most common one and it would be fine.
My gateway is fine.
There is a ton of different ones.
Get them a gateway and then what you do is they have a phone back there that is actually
the phone that rings for orders.
That will do a couple things.
They are going to love you so much for this operational improvement, that when the phone
rings for a new order over the phone, it's not ringing right next to the person that
is trying to communicate their order.
It's so annoying.
They have a line out the door.
People are whatever, and then you have the poor person at the counter, they are trying
to swipe the card for this order, but the employee right next to them is going, "Okay,
and you said you wanted a large cheeze, hold on a second," and they are keying in and
it is a pain.
The credit card is being used at the counter in the back so you've got to make sure you
have that separated out and get them a gateway.
By the way, on a side note from an interchange perspective, you might actually lowering their
total payment processing fees by 10 to 20 basis points on those phone orders just because
they are getting all the correct information.
They are getting zip codes.
They are getting all these different things.
It's much less likely to have a problem with interchange to get those downgraded or
something because they are collecting more information.
It's more of a secure transaction, more protection against chargebacks, so have them
do that.
It's super, super important that you separate those out, and that is going to save them
a lot of money.
The other thing that you can do is at the point of sale, make sure they don't have
some old, crappy terminal.
A pizza shop is a place that has to have a decent terminal, and they need to have it
connected to the internet.
That is an absolute, they must have it connected to the internet.
I know most business owners do by now, but you'd be surprised how many pizza shops
I've even been in during the last year that they still swipe the card, put in the amount,
and we wait.
You are like, "Oh, my word," and there is a line of 20 people and it takes 15 seconds
for the terminal to dial out and dial back.
The internet takes like one second to do a transaction.
They have to be connected to the internet.
I will also throw one more little side note out on a pizza shop.
Pizza shops are a really good one for the Poynt terminal, if they are a smaller pizza
shop.
They are not looking for a some big, full feature thing.
They just need to have something basic.
Poynt is a really good system for a pizza shop.
They can do some different things, some of the apps that came out on there are really
good, but that's a nice terminal for a pizza shop, that is maybe not real big because it
does connect to the internet and wireless.
It's just a really nice system.
I think you would want to check that one out.
There is a few tips on how to sell merchant services to a pizza shop.
Take that information.
Do a little additional research yourself and make a program that you can sell just to pizza
shops and then target them and watch your sales go through the roof.
My name is James Shepherd.
Thanks for reading!
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