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THIS ISSUE:  The overlooked importance of payment options.

A change of pace. 

It has now been ten weeks since RCG expanded our relationship with Beryl's World.  In that time, a few lessons have been learned that are certainly worth sharing with you.  This edition of RCG-6 focuses on providing more detail on one topic related to one of those lessons.  Please let me know if this change-of-format is one you would like to occasionally see.

An Overlooked Marketing Tool

Businesses involved in Direct Marketing (including mail, email, web, telemarketing, and in-person sales), want the best “response” or “close” rate possible for any given marketing activity.  Consumers and business customers want the best price possible for any given purchase.  From the business point-of-view, one of the often-overlooked aspects of direct marketing, is how the presence or absence of various payment options can raise or lower the response rate to any given marketing campaign.  From the customer’s point-of-view, there is little information about how choosing a given payment option can impact on overall pricing now and in the future.

The Importance Of Payment Options

As taught in many introductory college textbooks to marketing, the four key elements of marketing are the Price, Place, Product, and Promotion of the offer.  Hidden within the category of Promotion, is the topic of payment options.  Contemporary payment options include credit cards, debit cards, cash, paper checks, and C.O.D. (Cash [–or other payment]on Delivery).  While various types of electronic funds transfer (E.F.T. such as check wires and PayPal) are given space in the business press, their use in the marketplace in not pervasive.

Consider these statistics provided by Beryl'sWorld affiliate ePaystream.com:
 

• While varying by month, it is common that only 17% of US households that have credit cards with any credit available for new purchases.
• While varying by month, it is common that about 85% of US households have a bank account with positive balances.
• For many businesses, accepting credit cards forces them to raise overall prices between 2.5% and 5% to cover both the direct and indirect costs of credit card processing.  In times of economic stress, this can be the difference between success and failure.
• For many consumer-oriented businesses, C.O.D., E.F.T., and checks are too cumbersome and or too costly to be offered to clients.

Consider consumer-oriented businesses who use web and call centers to process orders.  If they depend on Credit Card purchases, they are limiting themselves to only 17% of the potential market while their fees to the credit card companies drive up their prices!

Enter Beryl’sWorld partner ePaystream.com.  While ePaystream offers traditional credit card processing at competitive rates, their core mission is to convince businesses to accept checks over the Internet and through call centers.  Their standard charge to process an “eCheck” ranges from $0.36 and $0.97 per transaction for most US businesses.  For Beryl’s World Joint Ventures (JVs), they rebate up to half of those charges to the JV, also depending on volume. 

So eChecks expand the potential consumer market for web and call center businesses from 17% to 85% of households while driving down prices.

While there are some businesses that won’t directly benefit from eChecks, there are even more that will.  If your business is not using ePaystream and this is an option appropriate for your situation, please contact your facilitator at Beryl’s World to expand your market and control your costs.

Feedback?

This was certainly a departure from the format of the previous newsletters.  I look forward to feedback as to whether more issues of this type should be developed.

STANDARD SHAMELESS MARKETING CALL-TO-ACTION

The Roomberg Consulting Group is always looking for partners to invest their time or financial resources in the success of their ventures.  If you are interested, don’t delay the call to a number below.

Please feel free to call or email and please stay in touch.

Sincerely,

Leon Roomberg MS(C/HRM), MDBA

Please address all email to:

Director
The Roomberg Consulting Group
www.Roomberg.com
16 E. Cedar Ave.
Marlton, NJ  08053
609.238.4625

Facilitator
Beryl's World
www.Berylsworld.com
261 Old York Road - Ste. 930
Jenkintown, PA  19046
215.887.5700x142

Subjects in prior newsletter editions:

RCG-6.  Volume 1  Issue 1 - November 1, 2002
The Roomberg Consulting Group's Six-Paragraph Newsletter
Topics:

• Beryl's World
• 37Point9

RCG-6.  Volume 1  Issue 2 - November 11, 2002
The Roomberg Consulting Group's Six-Paragraph Newsletter
Topics:

• 4-Freedoms Educational Program.   
• Knutek. 
• Gary Kinzel.
• Corporate Strategies, Inc.

RCG-6. Volume 1 Issue 3 – November 25, 2002

The Roomberg Consulting Group's Six-Paragraph Newsletter
Topics:

• The USS Razorback.   
• Gettoner.com. 
• FloraSpa.