Cashless payments, high interest rates and a major increase in the cost of living; are you feeling the pinch on your profits these days? Ever since the COVID-19 pandemic, most small businesses have had to explore cost-cutting measures to combat rising interest rates and increasing cost of living. The pandemic also brought on a sharp increase in cashless payments. Can you remember the last time you paid for anything using cash? The Reserve Bank of Australia (RBA) reports that only 13% of all payments were made in cash in 2022. This means businesses must accept card payments. However, with card payments typically come higher EFTPOS fees, meaning more rising costs for you and
As a small to medium-sized business owner, it’s becoming increasingly difficult to manage these increases while staying competitive in the market. Everything from labour to goods and even overhead expenses like electricity and petrol are on the rise, and it’s putting a strain on the bottom line. To make matters worse, EFTPOS fees can add insult to injury, as they tend to be percentage-based and tied to the monthly turnover. This means a great month in sales can cause business owners to have a larger bill for EFTPOS fees.
If you are seeking ways to decrease expenses and costs for your business, there are numerous strategies you can implement. One option could be exploring more automated technology. Nowadays, there are many efficient tech platforms available to assist with your business, which can help you reduce the time you and your staff need to spend on regular tasks. For example, accounting software that helps you better track and analyse your critical business metrics to ensure you’re on track for your business
goals and profitability.
Another great option is negotiating with suppliers. You should always question the initial price from the vendor and negotiate for a discount. Don’t forget to research various suppliers to obtain the best possible deal. It’s important to shop around and compare rates to ensure that your business is receiving the best possible deal. Let’s take that EFTPOS bill again, as an example.
Did you know that you can get rid of your EFTPOS-related fees with Smartpay?
For bakeries, Smartpay offers a Zero Cost™ EFTPOS solution* that enables you to automatically pass on your merchant fees and reduce your EFTPOS bill to zero, lowering your overall costs and enhancing cash flow. The automatic surcharge feature eliminates the need to waste time or worry about calculating the incorrect surcharge amount.
In a recent Smartpay survey over half of small and medium-sized businesses surveyed had actively noticed an increase in clients supporting local businesses, suggesting that clients might be more open to embracing surcharges than you think.
“EFTPOS costs really started to climb with COVID, and everyone started paying by card and mobile phone. Now no one is carrying cash anymore,” shared Jim, owner of Gwynnevillle Bakery, one of the many bakeries in Australia that use Smartpay. As they are a small business, Gwynneville Bakery relies on the loyalty of its customers, which was a concern at the start. But to their pleasant surprise, their customers were understanding. “We have not had any adverse effects from adding a surcharge either. Our customers understand we are a small business and I think surcharging has become the norm now,” Jim said.
Jim is now able to rest and recharge sometimes from the efforts of running his bakery. “We’ve used that money to take on part-time staff, and that means we can all have the odd break from time to time,” Jim said.
The sign-up process is easy, and you’ll get a Smartpay terminal delivered directly to your door, which comes ready to use straight out of the box. With Zero Cost™ EFTPOS, you’ll get the full cost of your sales settled into your business bank of choice the next business day, making the whole process seamless. For any questions or issues, the Smartpay locally-based support team can be reached 24/7, 365 days a year by phone.
Finding ways to save on costs is paramount. Whether it’s introducing new tech, negotiating with suppliers or upgrading your EFTPOS provider, it’s time to find what’s right for your business to elevate your profits so you can focus on putting that time, energy and money back into your business for the best possible results.
Sign up for Zero Cost™ EFTPOS via the
NBIA landing page and receive a $250 cashback.
*Minimum turnover and T&Cs apply.