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Will credit card acceptance help my business?

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on a much smaller scale...ie I'm a home owner and do my own stuff here.....i can't believe the crap the local homedepot stocks as far as lumber for example....ya have to sift through the entire pile of twisted and splintered crap and then check each one to make sure they're straight......I did hard wood flooring a few years back and loads (prolly 20/25 %) of it was a waste due to pitting, but by the time I got to that project it was mine (had the wood sitting in the room awhile).....they built a Lowes up the road, they seem a bit better, haven't been to homeys since, i hate that freggin place.

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View PostFYI, my post was not meant to beat on you in any way! Just saying it's often useless to fight it.

 

I hear ya! I just get wound up at the way the big stores came to town and took over everything. People think they're getting a deal when they're getting the shaft. I don't understand the mentality. Its like people don't even call around for a minimum of three quotes anymore. Now they just run to the big store and think they're getting a bargain. Crazy.

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View PostI wish I had the means to extend delayed payments to people. I cannot afford it personally. I have tried, in the past, to work with a bank program that offered loans to my prospective clients. However, it adds a LOT of time on my end to deal with all that paperwork and its time/money I often cannot recoup. Now I usually recommend people visit their local bank and apply for small construction loans.

 

 

As far as why I charge what I do... its easy. I like to be able to sleep at night. I charge what I feel is fair. Not my fault that the box stores are unrelenting in their attempts to take every last cent of their customers. kooky.gif As an example... I was at a house the other day to do some trim work. The owners were looking at window flyers and asked me if I thought they were getting a good deal. They showed me the windows they'd be getting and told me it would be $600 per window installed. I could install the same windows for $300 and pocket $50 an hour doing it. That's after my costs for insulation, caulking, disposal, etc. Yes, I got the job after they heard that.

 

Typically I charge $30 an hour right now, in this economy. At most, in my area, I have charged $40 an hour. I just don't get why anyone would accept the doubled prices especially when they have no idea who is actually coming to their house to do the install. When I go bid a job, the people get to meet me and know that I'm the guy thats going to be responsible for their home. Go to a box store and you're just talking to the middle man. I don't get it.

 

The other thing that burns me about the box stores is how they charge so much more for materials than the smaller lumber yards. I use only local yards and yet buy my material for a minimum of 5 to 10% less than the box stores... and its quality material, not crap. I could go on for days...

 

After insurance and everything, social security, taxes, permits, and all that, you can survive on $30 an hour? You're a better man than I!

 

 

If you get slow, let me know. I'll pay the hotel bill, too! biggrin.gif

 

 

Hell, I could make BIG money subbing evreything out to you. (I don't do residential, btw, but for those rates, i just may start my own deal, subbing 100% out to you)

 

 

Good luck, I wish you the best. icon14.gif

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View PostAfter insurance and everything, social security, taxes, permits, and all that, you can survive on $30 an hour? You're a better man than I!

 

 

If you get slow, let me know. I'll pay the hotel bill, too! biggrin.gif

 

 

Hell, I could make BIG money subbing evreything out to you. (I don't do residential, btw, but for those rates, i just may start my own deal, subbing 100% out to you)

 

 

Good luck, I wish you the best. icon14.gif

 

I'm guessing things are cheaper here. Not often you find someone around here charging more than I am. In fact, I've lost a lot of work this year to people charging 15 to 20 an hour. Imagine that?! I can't do it. When I'm on a strictly interior finish job, in a multi million dollar home I can get $40... but even then people complain about the price like its astronomical.

 

You saying I should move south? biggrin.gif My wife's been wanting a relocation. highfive.gif

 

I think what we need in NH is contractor licensing. Too many fly by night carpenters here. Half of them have no clue what they're doing and probably more than half have no insurance. But people hire them because their prices are so cheap. Guess quality doesn't talk... cheap rates talk. kooky.gif

 

Anyways... CT is not that far... I just did a 5 week job in Maine (3 hours from home). Keep me in mind if you have a wad of cash you want to share. Hahaha.

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I do not believe that rate for a second. They will tell you anything to get you to sign. If you do your books with Quick books, you can get merchant services through them. You will not need a terminal. You can do it on line through quick books. Peachtree and other accounting software offer the same services.

 

There are also a zillion other charges built into every credit card transaction. You know your card that gives you 2% back? That comes from hidden fees charged to retailers. Most American Express transactions will garner a fee of between 2.5 % ane 3.5 %. They do not tack on alot of ancillary fees to the retailer. Visa and Mastercard will give you a low flat rate, but will stick you for extra charges depending on what type of card it is.

 

Most rates are set on the amount of gross charges you rack up. They are usually willing to give bigger stores a better rate. You may also get a better rate by being part of a trade association or some other group that pools their resources.

 

American Express is by far the toughest of the credit card companies to deal with as a retailer. They stand behind their customers 110 %. They have no problem withholding funds to cover a dispute. They have the big balls on the street and they are not afraid to swing them. I personally have never seen anyone win a disputed charge from American Express.

 

Remember, accepting credit cards is a tool. it offers your clients more flexibility in the way that they can pay you. Of course, cash is always the best way to deal. However, their will be occassions where accepting credit cards could be beneficial to your business.

:rav: Hello Japan? Connect me to Godzilla please.

 

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Amazingly, I just received an email from my bank rep. She sent me a page explaining all the fees I would be charged. Yes, the 0.4% was just their commision. By the time the rest of the fees from them and the credit card companies are figured in it adds up to 2.8% for personal cards and 3.5% for corporate cards. The rates very slowly decrease as the transaction amount increases. But still, taking 200 to 350 bucks from me on a 10k job makes a difference.

 

She did say that would be part of an artisans group for better rates. She assumes I would only do maybe a dozen transactions a year, so being on a plan by myself the rates would skyrocket.

 

Oh yeah... she already recommended that if I did this to NOT accept American Express. She said it hurts small businesses more often than not.

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View PostAmazingly, I just received an email from my bank rep. She sent me a page explaining all the fees I would be charged. Yes, the 0.4% was just their commision. By the time the rest of the fees from them and the credit card companies are figured in it adds up to 2.8% for personal cards and 3.5% for corporate cards. The rates very slowly decrease as the transaction amount increases. But still, taking 200 to 350 bucks from me on a 10k job makes a difference.

She did say that would be part of an artisans group for better rates. She assumes I would only do maybe a dozen transactions a year, so being on a plan by myself the rates would skyrocket.

Oh yeah... she already recommended that if I did this to NOT accept American Express. She said it hurts small businesses more often than not.

 

It almost sounds like I know what I am talking about.

:rav: Hello Japan? Connect me to Godzilla please.

 

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View PostI'm guessing things are cheaper here. Not often you find someone around here charging more than I am. In fact, I've lost a lot of work this year to people charging 15 to 20 an hour. Imagine that?! I can't do it. When I'm on a strictly interior finish job, in a multi million dollar home I can get $40... but even then people complain about the price like its astronomical.

 

You saying I should move south? biggrin.gif My wife's been wanting a relocation. highfive.gif

 

I think what we need in NH is contractor licensing. Too many fly by night carpenters here. Half of them have no clue what they're doing and probably more than half have no insurance. But people hire them because their prices are so cheap. Guess quality doesn't talk... cheap rates talk. kooky.gif

 

Anyways... CT is not that far... I just did a 5 week job in Maine (3 hours from home). Keep me in mind if you have a wad of cash you want to share. Hahaha.

 

Like everywhere (except goverenment work) the market economy is in play. 2 years ago, you could have charged basicaaly whaever yu wanted to.

 

 

If I have a bigass wad of cash, I'll buy a crappy condo and go tuna fishing, then go live with Rav for florida style fishing from Thanksgiving until a couple weeks after easter!

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View PostI hear ya! I just get wound up at the way the big stores came to town and took over everything. People think they're getting a deal when they're getting the shaft. I don't understand the mentality. Its like people don't even call around for a minimum of three quotes anymore. Now they just run to the big store and think they're getting a bargain. Crazy.

 

beers.gif yEP!

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I don't think credit cards would help but I would look into getting a bank that will let you do interest free for 6 months or a year promotion. I think that's the hook for the big box stores and also appliance, furniture stores, etc. Even smaller stores like my uncles carpet and flooring store have that around here but it's done through a major bank and you're off the hook. Customer fills out the credit application and submit it to the lender with the amount they need for the remodel and it's up to the bank to accept or deny. You get paid up front and don't have to get worried about getting screwed for payment.

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View PostI am contemplating getting my business set up to accept credit cards. I do home remodeling and construction. It is a bit pricey to get set up for this and therefore I want/need some input from others.

Would you be more inclined to do business with a contractor due to their ability to accept a credit card payment?

I know a lot of people hire "box stores" to do their installations due to the credit terms they offer. A lot of times I can beat their prices by A LOT. Do you think it would sway you (as a homeowner) to do business with me when the only difference is the use of credit? Forget the fact that I provide more personalized service and hand-picked, quality materials.

I'm having a website built as I write this... and am highly thinking of fronting the money to get started on a credit acceptance program. I am trying to provide what seems to be an important option nowadays. Do you agree this would help my business?

My one fear is that someone could use the credit system to withdraw payment after a completed job. Could someone get away with that, if the work was appropriately completed? I have never had a problem to date, but fear someone may use the credit companies as a middle man to skip payment. Thoughts?

Thanks for any replies.

 

 

I have been in remodeling-construction for 35 years. No credit cards. If a customer wants to pay by credit card they can draw against it at the bank. In other words, they can get a cash advance.

 

I do offer my customers financing through 9 different credit sources at no charge.

 

Dennis

Quote TimS "...we have 30 moderators and 7 administrators, we aren't taking on any vigilantes at this time".
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