There are a couple ways Internet and mail order companies, and merchants can reduce costs and increase profits simultaneously. One way is by controlling inventory costs. Companies that control their inventory costs boost profits by lowering their inventory expenses. A retailer can waste a lot of money ordering products they don’t need. And it is difficult poring over written notes or ledgers, figuring out which products must be ordered each week. It is much easier to use a credit card gateway system. A credit card gateway is basically a POS system or computerized register. However, the gateway fully encrypts a person’s credit card number so it cannot be stolen or used by others. These gateway systems come with a credit card processor. And credit cards have been know to boost profits for some retailers as high as 40 or 50 percent.
An Internet or mail order company can use a MOTO credit card processor. This unit can be placed on a merchant’s website, or the business owner can use portable or touch-tone devices. These units can boost profits. But Internet and mail order companies still need to control their inventory costs. The credit card gateway can make ordering much easier. Companies will have lists of the items they purchases and know their best sellers. However, these types of retailers must also have flexible suppliers which accept damaged or returned merchandise. Thus, saving costs starts with the selection of a supplier, its policies and how quickly they can ship products.
Merchants can also reduce costs by watching their labor expenses. Most of the gateway processors are interconnected with time clocks. This enables managers to determine when they have too many employees at stores for the amount of sales generated per hour. They can then send people home and better manage their labor expenses, which are one of the highest expenses for retailers.
Reducing inventory costs and managing labor expenses can greatly increase a company’s bottom line. But adding an ATM machine can also increase profits. Some people may not have credit cards or checking accounts. Besides, checks are paper and cost money to process. Any person with a debit card can access cash through an ATM machine. This may prevent the person from going elsewhere, and increase profits for the day. One company that sells ATM machines, card processors and gateway systems is Merchant Services America. They can help you with all your card processing needs and ATMs, and their processing fees are the cheapest around.
This post was provided by Solon Zafiropoulos of Merchant Services America, an independent payment processing firm that assists merchants with credit card processing, gift card, cash advance, payment security, internet marketing, and other value added services. He can be reached at (888) 796-3724. Or, email him at firstname.lastname@example.org.