How we Talk About Money (Discussing Payment Options) [E051] - Speak Up! Effective Communication

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Thank You To Our Partners The Institute, AutoFlow, Shop Dog Marketing, In-BoundWatch Full Video EpisodeIn our episode today…How we talk about money.If I think back to the earliest time of my career as a service advisor - my closing interactions with clients on occasion, felt somewhat awkward when taking payment.&nbsp; It wasn’t awkward because the business component of the job is wrong or weird - it wasn’t awkward because I felt sorry for them due to the cost of transmission work (I did feel sorry for folks) - It was awkward because when you’re having a great conversation shifting into talk about money is sometimes, really stupidly awkward!&nbsp; That’s OK.But sometimes - we make it even MORE awkward by not communicating well around the way payments for services can occurs. That is why in today’s episode - we’re talking about how we talk about money.ParsimoniousWOTDWe’re back - and the WOTD is ParsimoniousIt not only an adjective.It’s a euphemism for someone who is cheap!It means!unwilling to spend money or use resources; stingy or frugal.It’s a good word for my topic today.Because some of you are really parsimonious… particularly when it comes to credit card processing fees!&nbsp; OK - processing fees are a thing I feel like every business owner agrees on universally.They suck. &nbsp; There are a few extreme reactions I see to this that are a little alarming.&nbsp; I’ll list three - and then you’ll see why I feel this topic was worth bringing to Speak Up as communication is once again the solution.&nbsp; Though now I am thinking I should have also called in my friend Hunt Demerest from “Business by the Numbers!&nbsp; Next time!&nbsp; Totally in his turf here.One Extreme - a number of shops will argue its just a cost of doing business - so they just eat the cost and go about business.&nbsp; (some will just build it into their pricing and be done with it.)But since processing fees can amount to tens of thousands of dollars in lost profits each year. Those numbers should end the argument that “it’s just a cost of doing business.”Plus - if you’re in a market that is more… parsimonious… you may find competition makes this more challenging- no matter how great you are.I think it’s a cost you can do something about - and we’ll explain how in a moment.Another extreme:&nbsp; “No we don’t take credit cards.”&nbsp; This effectively eliminated fees.&nbsp; Sure.&nbsp; But at a tremendous cost of convenience to your customers and you can be fairly sure this doesn’t feel like a smart option on slower days if people cannot choose you because their preferred payment method isn’t offered.Still another extreme:&nbsp; “Surchargers”&nbsp; We take cards - but we charge you x% to cover the fees we’ll incur.&nbsp; I’ve seen this trend increasing, and I reached out to my friend Dr. Mark Hale who founded Facepay.&nbsp; For those not familiar, Facepay became “Express by Facepay.”Dr. Hale shared some insights with me on this, and he says what customers dislike more is that many shops don’t give a viable option to avoid the surcharges.&nbsp; “He stated - no one carries enough cash for a repair, and you stopped taking checks ages ago!”When I had this exchange with Mark - I could help but think “cash for a repair? I don’t carry enough cash for breakfast!”True story - when I was taking flight lessons a few years ago - I was up early prepping some materials before a cross-country lesson.&nbsp; Long flight ahead on a windy day in a tiny little Cessna 152 (those who know Cessnas know a 152 is basically a tin can kite with doors that pop open)…so I went to a local breakfast restaurant in my neighborhood.&nbsp; Good place - but I hadn’t been to it in 10 years. &nbsp; French toast - hashbrowns, sausage - it was good - I even thought to myself… “why don’t I come to this place more often…”Then I remembered.Oh crap.&nbsp; They only take cash.&nbsp; It says so in cursive on the door (which I CAN read by the way… but failed to notice)No big deal - I had an ATM card - and this was the restaurants solution for those of us who dont carry cash.Problem - my ATM card - which I also hadn’t used in years - was expired.&nbsp; I was cooked.I had to go to the counter and tell them I couldn’t pay.&nbsp; I’ll have to come back with some cash later - and even offered collateral.&nbsp; The attendant looked at me slightly bothered and a bit skeptical - but indicated it’s fine if I come back and pay later.&nbsp; THough I sensed she thought she’d never see the money.I had to get to the airport for my lesson - so I let my wife know the amount owed and if she could run some cash to the restaurant for me - which she did a few hours later.Whats funny on this story… Ironically - the cross country flight destinate was an airport in Owasso, Michigan the cross country flight I enjoyed another breakfast … but this place 80nm miles from my home was more convenient to pay for after navigating and actively flying a little plane… because it took credit cards.Fun fact - I’ve been back to that breakfast place, called Joe-Lee’s Crosswin Cafe’... but I have not been back to the place down the street from my home!The point to this story:&nbsp; 1.)Convenience matters.&nbsp; And 2.) It’s more common now than ever that people are not carrying alternate methods with them.A quick search and I came up with these transaction stats in the USCredit Cards: Account for roughly 35% all payments.Cash: Used in approximately 14% of all paymentsDebit Cards: Popular, with about 30% of payments, according to the Federal Reserve.&nbsp;Other methods: Include ACH transfers, checks, and other methods, making up the remaining 21%.&nbsp;Debit and other options combined amount to more than half of the transactions then?The solution any business needs then - is to change how we communicate regarding the options for those other types of transactions can occur.This means talking about the payment options and benefits for using alternate solutions, like express by Facepay - EARLIER in the visit.I have worked personally with Dr. Hale with multiple clients to help people share simple text messages as a part of status updates explaining direct banking payment options.&nbsp; That simple strategy, Mark could tell you, can cut credit card bills in half so that surcharging isn’t even necessary.The thing most important in all of this - no matter how bad fees are - when it comes to money and talking about money - we must always be communicating from a position aimed at providing good service, not presenting new barriers, and certainly not relying on passive signage.&nbsp; Put your customer hat on and pay attention to how much happier you are when a business makes things easy for you.One last note on convenience… I urge advisors to be vigilant with CNP transactions and being aware that invoices must match the name of the person paying for services. To prevent problems - it’s always better to identify how the client wishes to pay by communicating well before the moment of the transaction.Something to add? Something you’re curious about?&nbsp; Something you’d like to talk about?&nbsp; - email me here:&nbsp; speakup@craigoneill.net.We appreciate hearing from you on anything that helps - or suggestions on topics you’d like to hear us discuss on the show that will help you on YOUR communication journey!Thank You To Our Partners The Institute, AutoFlow, Shop Dog Marketing, In-Bound:The Institute at WeAreTheInstitute.com. &nbsp;"Stop stressing over your business, you deserve a good night's sleep. The Institute’s coaching helps you achieve success and financial peace.AutoFlow at AutoFlow.com. Your partner in technology, Autoflow consolidates your client interactions - before, during and after the visit to a single thread. Learn more at Autoflow.comShop Dog Marketing at <a href="https://shopdogmarketing.com/" rel="noopener...