Tip #6 - Offer A Variety Of Payment Methods
Cash, check, a variety of credit cards, in-house charges, open account, and lay-aways are all methods of payment used today in retailing and distribution. The methods you use are a function of who your customers are, and the processing system you have set up to accommodate different methods of payment.
The benefit of having more payment methods is that it's easier for more of your customers to buy. The downside is, without adequate systems, it can be difficult and risky to control. If you want to increase your sales, it is in your best interest to provide as many payment methods as possible. Here is how you can control them.
Cash Control
Generally, it's easier to accept cash in a retail environment than in a pure distribution environment. Panasoft provides locking, software-driven cash drawers for maximum security. They open only when cash is being received. For other types of non-cash transactions, they remain locked. The system automatically tracks who did what and balances everything out for you. Distributors can take more quick, "will call" type sales at full margins if they handle cash easily. More and more of them are finding that this can be a very profitable way to do business.
Check Control
Payment by check enables your customers to make quick, convenient and large ticket buying decisions; the obvious risk with checks is that they are sometimes returned by the bank. You can minimize that risk by taking down sufficient customer information. The problem with most systems is that they allow checks to be accepted without such information being captured.
As you might expect, this is not the case with the Panasoft System. A check verification process is built in that won't let the transaction be completed until the required customer information is taken. This way you get to have the sales increases that result from making it easier for your customers to make buying decisions, without exposing yourself to unreasonable risks.
Credit Card Control
Panasoft utilizes the latest in magnetic stripe readers and automatic interfaces with major credit authorization centers. These features, along with the specialized sale types discussed above, give you the fastest possible check out. In addition, if you take phone orders and accept credit cards for payment, special algorithms have been built into Panasoft's software that catch keying errors in card numbers instantly. This way the error can be corrected while the customer is still on the line, instead of having to place another call after the error is discovered.
In-House Charges And Open Accounts
This can be a very good way to move items out of your inventory and pick up interest, rather than pay it. All you need is a way to set up an A/R account, receive and post payments, add installment charges and print statements. The Panasoft System automatically does all of that for you. The system even lets you take account payments right at the sales workstation.
Payment Method Profit Questions
- Are we making it as easy as possible for our customers to buy from us? Does our quality of customer service suffer when we accommodate additional payment methods?
