April 9, 2008
In an effort to keep our prices down during this recessionary period in American history we began looking at our costs and we discovered that we were paying the credit card processing companies almost 4% on each purchase.
There are two principle advantages to merchants to credit cards.
First you are sure that you are going to get paid and second, you get paid immedidately.
Taking those two items separately.
All of our customers have an established relationship with us. They have either taken the "Automated Endo" course or they are working or have worked in an office that has.
Four percent is 1/25 or one out of 25. In order to break even on non-payment losses one out of every 25 of our customers would have to sever the relationship they have developed over the years. We don't think that will happen.
The other item is the immediate payment. Two scenarios are possible. One, using the credit card gets us payment before the order is shipped. Two, we wait a month or so(on average) for payment.
Thus in order to get our money immediately we pay 4% A MONTH in interest. In effect 4% a month is probably close to 50% per annum.
About Christmas time 2007 we decided to try an experiment and stopped demanding credit cards. Instead we explained that we would send an invoice with a stamped addressed envelope for their check.
My faith in human nature was rewarded and in the following four months the average time of payment was less than a month.
It has met with overwhelming approval. Orders get out quicker. Bookeeping is easier. Errors are corrected easier. Tradeins are handled more easily. It's a win-win situation.
Our telephones are open five days a week from 8am to 8 pm East Coast time.
The number is (800)538-6835.
If you prefer to talk directly to Dr. Jacklich, he is available any days he is not teaching at (407)344-0550.
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Our FAQ file is under continual renovation and updating.
Read it frequently for newest information.
And we have several sources where we can get the answers if we don't have them.
Dr. Jack Jacklich April 9, 2008