Slashing Costs, MUST have your input!

Mike Dzurko · « **on:** 13 Apr 2009, 08:06 pm »

Okay, so the title is a little wild, at least we got your attention

We have been on a big kick to simplify, reduce overhead/costs, etc. Very successful thus far, and helping us keep our selling prices down.

One cost we have is the lease for the credit card processing machine along with the dedicated phone line and the card company processing charges. Going to Paypal only would allow us to eliminate these costs. With Paypal you can of course use a credit card to pay. Just looking for input, opinions. Bottom line, would offering only Paypal keep you from buying from us? Thanks for your input!

BPT · « **Reply #1 on:** 13 Apr 2009, 08:16 pm »

Mike:
Switch your CC to a web based service like First Data Global Gateway--no machines, no dedicated lines as you simply use your existing computer. Costs will be slightly lower than Paypal, so you can have them both.
Chris H.

lonewolfny42 · « **Reply #2 on:** 13 Apr 2009, 08:28 pm »

Mike....
Some people don't like PayPal...and won't use it....from the different posts that I have read. I'd keep all options open...

Chris

stereocilia · « **Reply #3 on:** 13 Apr 2009, 08:38 pm »

I think many would see a paypal only option as a sign that ACI is less-well established than it actually is. Maybe you could simplify by having MC or Visa only.

Besides, have you ever tried to call PayPal? Forget it. I can call a credit card compay and speak to somebody if I need to. Maybe it's different for vendors.

CSI · « **Reply #4 on:** 13 Apr 2009, 08:45 pm »

I would think that most people are just looking for the convenience of a cc. If you make it very clear that you can use a credit card through PayPal (which I bet few are aware of or understand) then I don't see how you would lose much business.

richidoo · « **Reply #5 on:** 13 Apr 2009, 08:59 pm »

Compared to your local bank's credit card service, you can get a discount online service for much less money. I used Cardservice Intl for a few years with no problems. It can be easily integrated into your website shopping cart for realtime approvals for online purchases, and also used at point of sale via the PC or even with portable cell based swiper.

Paypal has limits on transfers (coming and going) to prevent fraud and money laundering. Make sure those are not near your typical transaction prices.

Google Shop is another cheaper alternative, but with far fewer registered users. Paypal is very expensive fees. I think a discount merchant account would be cheaper and more convenient for you and customers.

maxwalrath · « **Reply #6 on:** 13 Apr 2009, 09:16 pm »

From everything I've read on line, returns and solid customer service are standard with your company. However, I think you will find that people who don't know of your solid reputation really like the security of paying for goods by credit card, and lots of people love the rewards they get from a card (1% cash back or airline mileage, for example).

It is probably time to raise prices a bit to reflect the 3-4% bite these financial companies take out of - what I would guess is - a huge percentage of your orders.

That said, if you raise prices slightly to reflect your costs, you might be able to offer discounts of 1-2% for using cash..which some companies have had success with.

TKonrad.NOLA · « **Reply #7 on:** 13 Apr 2009, 09:44 pm »

I am presently looking at monitors and your Sapphire is one of them. I have yet to make a final decision which I want to purchase. I can say that if you were paypal only that would automatically take you off of the list of monitors I am considering.

groovybassist · « **Reply #8 on:** 13 Apr 2009, 10:08 pm »

I'm not in the speaker market right now, but if I were, I'd remove ACI from my list if you were Paypal only.

-Mike

EDS_ · « **Reply #9 on:** 13 Apr 2009, 10:16 pm »

Quote from: groovybassist on 13 Apr 2009, 10:08 pm

I'm not in the speaker market right now, but if I were, I'd remove ACI from my list if you were Paypal only.

-Mike

Quite likely for different reasons than groovybassist, I'll never use Paypal regardless of the circumstances.

****Edited to remove a statement of fact about Paypal that might be construed by some as a political comment.

EDS_ · « **Reply #10 on:** 13 Apr 2009, 10:18 pm »

Quote from: maxwalrath on 13 Apr 2009, 09:16 pm

From everything I've read on line, returns and solid customer service are standard with your company. However, I think you will find that people who don't know of your solid reputation really like the security of paying for goods by credit card, and lots of people love the rewards they get from a card (1% cash back or airline mileage, for example).

It is probably time to raise prices a bit to reflect the 3-4% bite these financial companies take out of - what I would guess is - a huge percentage of your orders.

That said, if you raise prices slightly to reflect your costs, you might be able to offer discounts of 1-2% for using cash..which some companies have had success with.

The cash discount thing usually violates the credit card contract that vendors have to sign.

Watson · « **Reply #11 on:** 13 Apr 2009, 10:22 pm »

Paypal only isn't a realistic solution for anything but a very small business with no employees. You get one customer who complains and your whole Paypal account can be frozen... there goes your entire ability to receive payments from customers for as long as it takes to get resolved. Can be months.

DR · « **Reply #12 on:** 13 Apr 2009, 10:34 pm »

Hi Mike,

I agree with Sterocilia. When I shop on the internet I look for signs of established businesses. One of those things is does the store take credit cards (https). Knowing you heck I would give you my checking account number over the phone. However I think for new customers it would be wise to keep the cards. Could you build it in your price and give a discount for Paypal?

Dave

Carl V · « **Reply #13 on:** 13 Apr 2009, 10:44 pm »

I voted must have Credit Card option...for all the reasons posted previously.

BrianP · « **Reply #14 on:** 14 Apr 2009, 04:01 pm »

I'm a cantankerous old geezer and won't use either. Any company that won't accept a check or money order won't get my business.

bpape · « **Reply #15 on:** 14 Apr 2009, 04:12 pm »

You can use PayPal to process cards and still show it as an automated credit card transaction on the web site.

Bryan

satfrat · « **Reply #16 on:** 14 Apr 2009, 04:46 pm »

Quote from: stereocilia on 13 Apr 2009, 08:38 pm

I think many would see a paypal only option as a sign that ACI is less-well established than it actually is. Maybe you could simplify by having MC or Visa only.

Besides, have you ever tried to call PayPal? Forget it. I can call a credit card compay and speak to somebody if I need to. Maybe it's different for vendors.

I relly don't know where this statements coming from? I had 2 transaction issues in the matter of 1 week and was able to talk to a live person from Paypal within seconds of logging onto the Paypal website and obtaining a reference number. Both transactions were successfully solved, 1 being an AudioCircle transaction where a smiley was falsely included in a members address (a double a (aa) was infront of an email address) and I sent money some the wrong address of another verified paypal account who accepted the payment. Paypal called this individual and I quicky received a transaction cancelation from this individual.

ACI (Mike), I wouldn't do business with a company that couldn't or wouldn't take credit cards myself. If obsorbing these costs are diminishing your bottomline, I'd suggest that you have the customer obsorb the CC charges. I know of a few audio companies, Ridge Street Audio Design and Empirical Audio come to mind right off the bat, that pass along Paypal charges to the consumer. I would consider this route first before dismissing credit cards and potential customers.

Cheers,
Robin

stereocilia · « **Reply #17 on:** 14 Apr 2009, 06:54 pm »

Quote from: satfrat on 14 Apr 2009, 04:46 pm

Quote from: stereocilia on 13 Apr 2009, 08:38 pm
I think many would see a paypal only option as a sign that ACI is less-well established than it actually is. Maybe you could simplify by having MC or Visa only.

Besides, have you ever tried to call PayPal? Forget it. I can call a credit card compay and speak to somebody if I need to. Maybe it's different for vendors.

I relly don't know where this statements coming from? I had 2 transaction issues in the matter of 1 week and was able to talk to a live person from Paypal within seconds of logging onto the Paypal website and obtaining a reference number. Both transactions were successfully solved, 1 being an AudioCircle transaction where a smiley was falsely included in a members address (a double a (aa) was infront of an email address) and I sent money some the wrong address of another verified paypal account who accepted the payment. Paypal called this individual and I quicky received a transaction cancelation from this individual.
Cheers,
Robin

Glad to hear that your experience was better than mine, which I should have said was probably at least two years ago. I tried to call because my account was linked to a bank account which I had closed when I moved, and I don't remember the details of what happened but I was stuck in a catch-22 which couldn't (at the time) be resolved by using the website. I was on hold for more than three hours and never did talk to a live person.

Hopefully, my experience was not typical; I do use paypal now and then. I'm about 1/3 of the way down on the hater-fanboy spectrum.

Regalma · « **Reply #18 on:** 14 Apr 2009, 07:23 pm »

I do have to say that when I find that a site is a PayPal only outfit I get the impression that they are pretty much working out of their garage. That wouldn't stop me if I had checked everything else out already. But....

ajayrav · « **Reply #19 on:** 14 Apr 2009, 08:37 pm »

I think accepting credit cards is a must. People seem to view 'PayPal only' in a negative light, typically considering such companies garage outfits. There are a number of small dealers I patronize for my other hobbies that accept only Paypal, but they are not selling items at the $1K-2K mark. Accepting credit cards (and the protection it provides without going through a middle man), in my opinion gives an outfit an air of legitamacy and trustworthiness for a potential new buyer who is unfamiliar with a company or its products.

Just my tuppence....

Ajay

Poll

Would having Paypal only keep you from ordering?

Slashing Costs, MUST have your input!