OUR LATEST INSIGHTS

Up to date, high-level business information that is relevant to our clients and contacts, helping keep up to date on the ver-changing business world of today.

Cal Wilson / March 11, 2022

What will 2022 look like for VoIP phone systems?

Voice over Internet Protocol (VoIP) helps businesses across the world better manage phone systems which need a growing number of lines, virtual solutions, worldwide capacity, and more. In comparison to traditional analog phone systems, VoIP phone systems tend to have lower costs and higher reliability.  

For these reasons, VoIP is becoming increasingly popular with businesses. This trend isn’t slowing down in 2022; in fact, it’s picking up speed. In this article, we look at the future of VoIP technology, and what you can expect to see from providers this year.  

The industry is growing.  

With the digitization of communication still going strong, the VoIP industry is seeing the benefits. One provider, RingCentral, reported its subscription revenue grew 34% since pre-pandemic sales. Experts predict the industry will grow by at least 55 billion USD by 2025. This is due in part to the technology’s large expansion into previously untapped markets.  

For years, specialized business phone systems were used mainly by larger enterprises with hundreds of employees. Nowadays, the cost and customizability of VoIP has made it accessible to all businesses, whether you’re an office that needs a few phone lines or a call center requiring hundreds.  

The VoIP industry’s growth will include exciting new trends that take the convenience and mobility of this tech forward into a new era.  

VoIP is part of the rise of UCaaS.  

In 2022, we will likely see VoIP expanding as one part of a larger Unified Communications as a Service (UCaaS) product. UCaaS platforms offer services like VoIP along with a suite of other cloud-hosted communication services, such as video/web conferencing, instant messaging, faxing services, and collaboration tools.  

As TrustRadius explains, “one large benefit UCaaS brings is the ability to centralize virtually all online communication within one platform. Rather than having to purchase a separate video conferencing tool, instant messaging application, and voice solution, companies can invest in one product that has it all.” 

One of the trends that will continue to grow in 2022 with UCaaS is integrated communications apps, which host all the communications tools, including VoIP, from a single application. This prevents the frustration of having to switch between multiple apps or overload your devices with several different communications software running.  

As UCaaS continues to save enterprises time, money, and hassle, VoIP will continue to grow alongside it.  

5G capability will expand VoIP’s accessibility.  

With the number of 5G compatible devices being sold on the rise in North America, VoIP systems will inevitably be impacted.  

5G compatibility for devices with a VoIP phone installed could potentially solve two of the biggest concerns that hold some back from making the transition from traditional phone systems: 

  • Call latency leading to dropped calls. 
  • Quality of service on 4G networks.  

While VoIP is an improvement on traditional phone systems in a lot of ways, we all know internet connectivity can be spotty, especially in high traffic environments. Luckily, 5G promises significant improvements. While VoIP services on 4G networks can take 10 milliseconds to connect to a network, creating some latency, 5G is reported to speed this up to less than one millisecond.  

Likewise, because of the capabilities of newer devices and stronger networks, many VoIP providers now support applications on iOS and Android, alongside the typically desktop/softphone solutions. This has huge benefits for companies with remote or travelling workers.  

VoIP will be integrated with AI.  

In 2022 and onwards, we will see increasing integration of VoIP with AI customer service technology. 

With AI’s propensity for analysis, automation, and convenience, the combination of AI and VoIP will seriously change the way many businesses do customer service. It enables companies to: 

  • Set up advanced call routing. 
  • Use auto attendants to handle incoming calls.  
  • Speed up communications for customer service lines and reduce wait/hold times. 
  • Create smarter digital assistants that will conduct real-time analysis that gathers a customer’s emotional state and other information.  
  • Use Natural Language Processing (NLP) tech to translate voice or video calls in real time.  
  • Prevent fraud for businesses of all sizes 

The potential benefits of this technology are endless and will result in quicker interactions and less customer frustration.  

VoIP and CRM integration.  

Some companies have already made the smart move of integrating their VoIP solutions with their CRM data. Going forward, this will become increasingly standard practice.  

When VoIP and CRM are integrated, whenever a known customer or client number calls, the system automatically loads all their information, saving time and confusion on both ends of the interaction. In sensitive industries, such as banking, this can also prevent mistakes and data breaches from happening.  

The Education Industry is tapped for VoIP adoption.  

While enterprises were early adopters of VoIP across industries, 2022 is looking to be a big year for VoIP and UCaaS integration within the education world 

The rise of remote learning has created a need for virtual communication platforms that are accessible to teachers, staff, and students alike.  

A good UCaaS system would provide a host of benefits to a school doing in person, remote, or hybrid teaching. This includes: 

  • Adding supplemental learning sessions, enrichment classes, labs, and more virtually.  
  • Offer tutoring to the curriculum hosted online.  
  • Allow staff, students, and parents to request equipment, forms, books, and more in an automated, trackable way.  
  • Allows teachers to send bulk emails, announcements, and voice messages to students. 

While post-secondary institutions are leading the adoption of this tech, it seems that UCaaS is the future of education across the board.  

In conclusion… 

2022 is projected to be a great year for business phone system providers, whether that be just VoIP or UCaaS as a whole. Global circumstances, tech advancements, and more have created the perfect environment for the rapid growth of virtual communications solutions, which means a lot more opportunities for businesses to find services that fit their needs.  

Cal Wilson / March 7, 2022

Recommendation Letter for Cookie Drop

To Whom It May Concern:

If you have never opened your front door to fresh, homemade cookies, you have not truly lived!  Fortunately, Cookie Drop in Erie, PA can help you live a sweeter, more fulfilling life!!!

Cookie Drop is a unique dessert shop, delivering fresh, homemade cookies anywhere in Erie County.  The menu changes weekly with their cookie selection coinciding with the season. During Christmas you can find distinctive flavors like eggnog and hot chocolate and during Mardi Gras, they offer selections that include king cake praline pecan or sugar masquerade masks.   Opening their (oven) doors in January 2021, Cookie Drop found an opportunity to offer a special service during the height of the COVID pandemic using an unconventional business model.  For only $5, you can purchase six homemade cookies, and have them delivered anywhere in Erie County, PA! They deliver on Wednesdays and Fridays and ordering is as easy as sending a text message and making a payment via PayPal – it’s incredibly simple!

My family received cookies from Cookie Drop in the fall of 2021 and we immediately fell in love with their cookies and service.  I now utilize Cookie Drop as a thank you for my clients and professional contacts I meet with.  I have received so many compliments about how thoughtful and delicious the treats were and I have yet to find a better way to help forge a stronger relationship!

I’m grateful that Cookie Drop created such a sweet business during a very bitter time! If you want to deliver the feeling of importance to someone you know, I highly recommend you text Cookie Drop at 814-420-6065 and have them deliver cookies for you; you will not be disappointed (and neither will your recipient!).

Yours truly,

Adam Baker

Schooley Mitchell

Download as PDF.

Cal Wilson / March 3, 2022

Gas prices are climbing. What can your business expect to see reflected on its fuel bill?

It doesn’t come as a surprise to anyone that when prices are climbing, gasoline is included. Experts are divided as to whether gasoline prices are going to keep increasing, or finally drop. In this article, we look at the state of gas prices, and what your business can do to help reduce your fuel spend.  

Gas prices are at a record high.  

As of February, gas prices are the highest they’ve been since September of 2014, with no immediate prospects of relaxing. In the United States, gas prices are nearly a dollar higher per gallon than they were in February of 2021.  

In fact, conditions are so grim that head of petroleum analysis at GasBuddy, Patrick DeHaan, believes ”the national average could be pushed to record territory by the start of the summer driving season.” 

The rates in Canada are much the same. For example, Metro Vancouver saw gas prices hit a record high in January, with prices reaching 176.9 cents per litre. In Newfoundland & Labrador, residents are comparing gas prices to a second mortgage.  

And while demand is also falling across the continent for consumers, hopefully leading to an eventual decline in prices, this does little in the meantime for the businesses who rely on motor fuel for their daily operations.  

This is abnormal for winter months.  

The surging prices across winter months, in colder regions, has been especially surprising.  

As explained by the publication Money, in colder months, “gas stations generally switch to a different blend of fuel that is more suited to colder weather. Because that winter blend is cheaper than the fuel blend sold in the warmer months — and because the demand for gas also tends to decrease when the weather is colder since fewer people are traveling — the price of gas usually falls at this time of year.” 

What is behind the climb in prices? 

Oil industry struggles at a global level are part of the reason prices are so high. Conflict in oil producing regions, COVID-related restrictions impacting the industry, and supply chain issues all account for these struggles.  

Likewise, in mid-February, the Energy Information Administration reported declines in inventories of both crude oil and petroleum, despite gasoline reserves being on the rise. Why does this matter? Well, 52% of the retail price of gasoline is based on how much the wholesale crude oil costs.  

 “As long as the price [of] oil remains elevated, consumers will be feeling it at the pump,” said AAA spokesperson, Andrew Gross in a statement. 

Now is not the time to be lax with your fuel spending.  

While different experts have different predictions for the price of gas in coming months, your business needs a more concrete strategy to save than hoping costs will come back down. Whether prices are going to rise more or finally fall during the coming months, your business should be prioritizing optimizing this spend where possible.  

Let’s look at a few different strategies you can use to bring down your gas spend.  

Fleet cards.  

A fleet card (or fuel card) is a type of payment card that allows for easy management of expenses associated with company-owned vehicles. Fleet cards are designed to be used specifically for expenses related to managing vehicles. Businesses such as trucking companies, ridesharing services, or delivery providers will often issue fleet cards to employees who use and operate corporate vehicles. This helps to cover fuel, vehicle repairs, and maintenance expenses.  

Fleet cards will help your fuel spend in the following ways: 

  • Accurate records and flexible reporting – fleet cards enable owners/managers to stay informed of all business-related expenses via real-time purchase reports. 
  • Spending history and budget control – because each fleet card is linked to an individual employee, a business can use their transaction information to monitor spend efficiency and fuel consumption, potentially reducing overall company fuel expenses and allowing for more accurate budgeting estimates.  
  • Fuel discounts – many fleet cards that are currently on the market offer additional fuel discounts and regular promotions. 

Fleet cards are also accepted at most gas stations, so your drivers will be able to fill the tank when and where they need to.  

Route optimization. 

Route optimization is a solution offered by several providers which uses software to determine the most cost-efficient route for a vehicle or fleet of vehicles. A good provider’s solutions will factor in every variable that could affect a driver’s route, including, but not limited to: 

  • Number and location of stops 
  • Number of deliveries 
  • Time windows 
  • Number or turns and intersections 
  • Traffic patterns 

This is difficult work for a computer to do, let alone a human brain. As Verizon puts it, “[w]ith just one vehicle and 10 stops, the number of possibilities is 3,628,800. But if you have a fleet of five vehicles, that number jumps to a whopping 37,267,043,023,296,000. This is why route optimization is mostly performed by computer algorithms and advanced heuristics that can quickly narrow down the options.” 

Optimizing your fleets’ routes means less time driving, reduced fuel costs, and increased productivity. All of these things improve your bottom line and make the job easier on your drivers.  

Best driving practices.  

While it seems mundane, keeping your drivers up-to-date on best driving practices can also help save on fuel. A change to everyone’s day-to-day habits may not have an immediate effect, but over time, it will result in less fuel wasted.  

In fact, according to the Government of Canada, adopting fuel-efficient driving techniques can “lower your vehicle’s fuel consumption and carbon dioxide emissions by as much as 25%.” 

The government’s five main tips for fuel efficiency are: 

  1. Accelerate gently 
  2. Maintain a steady speed 
  3. Anticipate traffic 
  4. Avoid high speeds 
  5. Coast to decelerate  

Other practices to consider implementing include: 

  • Reducing time spent idling – make it a habit to turn off your engine if you’re stopped out of traffic for more than 60 seconds. 
  • Keep an eye on tire pressure – underinflated tires can increase fuel consumption up to 4%!  

In conclusion… 

Right now, there’s very little we can do to control or predict the price of filling up our tanks. However, business must go on. The best thing businesses with fleets can do is be aware, and practice other strategies to help reduce their fuel spend.  

Cal Wilson / March 3, 2022

Telemedicine provides significant cost reduction opportunities for healthcare practices.

Almost everyone has had experience with telemedicine in the past few years, whether as a practitioner or  patient. This technology is lifesaving when in-person healthcare visits are not an option.

However, not every healthcare provider has tapped into the potential of telemedicine. When considering whether to implement telemedicine into your business model permanently, cost reduction opportunities should absolutely be a consideration.

Telehealth experienced a rapid boom.

Some technologies gradually evolve an industry, but due to the COVID pandemic, telemedicine services saw rapid adoption, starting 2020. Providers like Teladoc and Amwell saw their businesses roughly double from 2019 to 2020.

By 2028, the telemedicine market is projected to reach over $636 billion. As you can imagine, this trend is disrupting the traditional models of medical practices, offering both expenses and savings opportunities.

5G is making telemedicine more accessible, too.

The recent roll out of 5G networks has brought new opportunities to the already expanding industry. Marc Fischer of Dogtown Media LLC told Forbes that one of “5G’s greatest potential is in enabling the Internet of Things and disrupting healthcare. For example, with IoT-connected medical devices, diagnostics and monitoring enabled by lightning-speed 5G, industries such as healthcare will take on a completely new look and feel.”

Practices are looking for a hybrid model.

Business Insider spoke with many hospital and clinic administrators, who the publication reported were largely in favor of a hybrid model of practice; one that combines virtual and in-person appointments.

While for some doctors, telemedicine doesn’t make sense with their specialty, many others see it being permanently integrated into their practice. Specifically, telemedicine solutions have seen widespread popularity in radiology, cardiology, online consultation, and behavioral health.

No matter how much a hospital or clinic looks to use telemedicine going forward, price is a consideration. Especially when these practices aren’t always sure who will footing the bill.

Billing still isn’t clear.

During the earlier days of the pandemic, many insurance companies agreed to reimburse virtual visits in the same way they would in-person services, on a temporary basis. While some countries have introduced legislation to make this more permanent, it is still not always clear if telemedicine will be deductible, and in what cases.

What is covered by insurance tends the dictate the services people use, and so reimbursements change or are cut off for telemedicine, the industry, and its huge projections, may be set back significantly.

Another setback is concern regarding fraud.

Fraud is prevalent in telemedicine.

In October of 2020, the United States Department of Justice identified a healthcare fraud scheme that included $4.5 billion of fraudulent claims made through telehealth. More recently, another $143 million was found to have been fraudulently billed, with the majority coming from telehealth providers.

According to Quartz, the majority of the scammers aren’t patients or healthcare providers, but telemedicine executives.

The startling fraud statistics are part of the reason some insurance companies may be hesitant towards permanently changing their coverage to include telemedicine.

Telemedicine is good for business.

For practices looking to continue with telemedicine, if it makes sense for their patients, it could represent significant savings opportunities.

According to OrthoLive, one telemedicine provider, the cost to the provider for of a telehealth appointment is significantly reduced compared to a traditional visit. Averages suggest that:

  • The approximate cost of an emergency room visit is $1,734.
  • The approximate cost of a traditional on-site doctor visit is $146.
  • The approximate cost of a telehealth visit is $79.

Likewise, the University of Pittsburgh Medical Center found they save $86.84 every time a primary or urgent care visit is conducted via telehealth, rather than on-site.

No matter what you think, telehealth has operating costs.

Like anything, there are fees behind implementing and maintaining telemedicine services. OrthoLive says across the healthcare industry, depending on specialty, the devices needed to implement telehealth can range up $10,000 per site, and a few hundred dollars per month per provider.

Like other web-hosting or data storage services, practices can choose to install telemedicine hardware and software on site, or pay monthly for Software-as-a-Service (SaaS). It also necessitates a strong and reliable internet connection and, likely, a compatible phone system.

Further savings from the statistics provided above can likely be found if your business is optimizing its telecommunications costs.

In conclusion…

Healthcare providers have become increasingly reliant on telemedicine services to reach their patients. With the industry projected to grow, and the potential for business savings so significant, now is a great time for practices to look into how they can optimize their spending.

Cal Wilson / March 2, 2022

Helping Your Team Avoid Burnout

We all feel the pressure to get as much done as possible – it’s the way we have been socialized, from school to the workplace. While productivity and hard work are necessary for a business to thrive, so too is protecting your employees from burnout, especially when they are working from home.

During the pandemic, there has been an added cultural pressure to be more productive than ever before. Whether its baking fresh bread every week, or learning a new language, we have all been asked to substitute the time taken up by our previous routine with something arbitrarily worthwhile. Many people have found this increased productivity mindset spilling into the way they work. While that extra effort from a team member is great, it’s also your job as a leader to make sure they don’t burn themselves out.

Think about your team. Who is doing more than usual? Who is volunteering for more than you suspect they truly have the time to complete? Who is taking less time for themselves? Call it Type A, workaholism, or ‘toxic productivity’ – call it whatever you will, but make sure it’s being addressed.

One of the main problems with this compulsive productivity mindset is that it can be fueled by guilt. Employees prone to this behavior may be experiencing a sense of guilt and insecurity for not having done more. Setting impossible standards for productivity, and feeling shame when those are not completed, can also lead to a perception of self-failure, even when the opposite is true.

This burn-out inducing pattern can lead to poorer quality of work, irritability, fatigue and exhaustion, lack of engagement, anxiety, and even physical illness. You care about your employees’ wellbeing, and want to retain talent; advocating for your team before they reach this point is just one of the many ways you can show your strong leadership.

Foster a culture that acknowledges the importance of downtime.

Even if your team insists on jumping from one project to the next, ensure they know they can and should take the proper time to care for themselves, especially outside of work hours.

Lead by example when it comes to self-care. Share with your employees how you prioritize your time off, and take some of the guilt away from the prospect of them completely removing work from their Saturday vocabulary. Make the expectation clear that engagement is important during work hours, and detachment is encouraged outside of that time.

A lot of the time, employees who are prone to ‘toxic productivity’ are anxious that it is required to keep in good standing with their manager. You can nip that in the bud by assuring them that this isn’t the case. Be enthusiastic and acknowledging of their accomplishments and deliverables, not the fullness of their schedule.

Listen.

It’s easy to preach self-care and work-life-balance, but it’s harder to know how your advice is being put to task. Maybe some aspect of your expectations for a team member is preventing them from feeling able to relax outside the workplace.

If you notice an employee struggling, take the time to show concern, ask questions, and graciously accept feedback. If you can take on the role of coach or counsellor to help an employee flourish in their career, that will be hugely rewarding to you, them, and your business.

Don’t Gate-Keep Time Off.

Within the appropriate requirements of their position, allow your employees to take the time off that they need without feeling the need to defend that decision. When sick days and holiday days go unused, you have to ask yourself, does my team feel safe to ask for time off?

Especially when working from home, it can be hard to ask for a day off for something like stress or fatigue. And yet, these conditions can drastically impact the quality of work.

Being understanding, respecting privacy, and giving employees the space to choose themselves can help them develop the trust they need to prioritize themselves.

Cal Wilson / March 2, 2022

Should your business be paying for shipping insurance?

If your business ships products across country or overseas, what happens when one of those packages is lost, delayed, or damaged? As the seller, your customers are going to hold you accountable — even if it’s not the fault of your company.

One solution to this concern is shipping insurance. Shipping insurance is a service that holds shippers accountable for and protects your business against lost, stolen, or damaged packages. If an insured package is damaged or does not reach its destination, the retailer is reimbursed the declared value of the items in the package.

Shipping insurance means paying a small upfront fee, for the peace of mind that any mishaps in transit will not reflect poorly on your brand.

Your reputation is on the line.

A 2020 survey from industry expert, Convey, found that 47 percent of respondents said they’re unlikely to shop with a retailer again after a bad shipping experience.

A 2020 survey from industry expert, Convey, found that 47 percent of respondents said they’re unlikely to shop with a retailer again after a bad shipping experience.

A similar 2016 survey found that, in the case of delayed or damaged product:

  • 53.1 percent of shoppers would expect a free, expedited replacement.
  • 43.9 percent of shoppers would expect a refund or discount on shipping costs.
  • 19.4 percent would expect a coupon discounting their next purchase.

Those numbers have likely shifted somewhat since stay at home orders led to an online retail boom, but the point remains. Your money and your business’s reputation are at stake when it comes to lost, delayed, or damaged shipments.

53.1 percent of shoppers would expect a free, expedited replacement in the case of delayed or damaged product.

When do you need shipping insurance?

Shipping insurance isn’t necessary for the average person sending a parcel, unless that parcel is particularly valuable or fragile. However, in a business setting, it really depends on your frequency and volume. The more you ship, the higher the chances are of something going wrong. If your product is especially expensive, the risk increases.

If you’re doing any kind of ecommerce, shipping insurance is a necessary operating cost to protect your revenue and your reputation.

2021 shipping crises are the perfect reason to get shipping insurance.

In 2021, we have already seen one of the best motivators for investing in shipping insurance. In March, the Taiwanese container ship Ever Given became stuck in the Suez Canal, bringing global trade to a screeching halt for many industries. On May 25th, a chemical fire broke out on a container ship off the coast of Sri Lanka.

If you are shipping overseas, or even by land, there is always a possibility of an accident or disaster leading to product destruction or delay. The events of the first half of 2021 might make you pause and consider investing in shipping insurance, or reviewing your existing coverage.

Cost is a consideration.

Across all major carriers, the rates are determined by the value of the shipped item.

ShipBob provides a helpful overview of the price comparisons for UPS, Fedex, and USPS. Both Fedex and UPS offer free coverage for packages up to $100, with rates increasing from there. However, UPS has a $2.70 insurance minimum, so the value of the shipped product must be at least $300 to qualify for UPS shipping insurance.

If you’re using a different provider, be sure to do your research and see what options you can use to your advantage. Likewise, there are third-party shipping insurers that are often less expensive than the shippers themselves.

As with any business expense you take on, do your research and consult with industry experts.

Cal Wilson / March 2, 2022

Why is waste so expensive?

Depending on what industry you work in, your waste removal expenses are potentially a significant burden on your bottom line. Sure, you can reduce waste — but compromising the quality of this service isn’t really an option. Finding savings is possible, but first you must understand what goes into the cost.

Waste cost categories.

It may be hard to imagine the price breakdown of waste removal, when most of the process happens away from your facility.

Your bill is most likely composed of four main cost types:

  • Container costs
  • Collection costs
  • Transfer costs
  • Landfill costs

Understanding your options among these four categories can go a long way in helping you reduce your bill.

Container costs.

Containers are the aspect of waste removal that you’re probably most familiar with, and an area where you have a fair amount of control. Commercial waste containers come in an array of sizes and are typically available for purchase or rent.

Pricing is based on the cubic yard sizing of a container. On average, a 4yd3 container costs $15 a month to rent, and $350 to purchase outright. Prices increase incrementally as size increases.

Knowing what size you need might come with trial and error. Come collection time, the optimized container is the one that is filled, but not to the brim or overflowing. Excess waste is often subject to excess fees.

Come collection time, the optimized container is the one that is filled, but not to the brim or overflowing. Excess waste is often subject to excess fees.

Renting vs. Purchasing.

Whether renting or purchasing is more effective for you is going to depend on what you need. Depending on your line of work, a permanent container might not make sense. For example, temporary construction or landscaping projects are more likely to require a rental, compared to a residential building or school.

Expert Market advises that purchasing a container is more efficient if that bin will be in use for at least 23 months.

Collection costs.

Waste collection fees are going to be the most variant depending on your location, container size, and collection frequency. This could be as little as $30 a week, or as high as $3,000. Figuring out your needs can include some trial and error and industry research. A restaurant is likely to require more frequent collection than an office building.

The kind of waste your business generates, as well as local health codes and in-person traffic throughout your premises, is going to determine your collection frequency.

Transfer costs.

Factored into your waste removal fees are the fuel and other transportation costs of moving your waste to a landfill.

Transfer can be arranged in two ways, direct or indirect:

  • Direct transfer transports the waste from your premises to a landfill in a single trip.
  • Indirect transfer transports waste from your premises to a transfer station, where it’s stored and batched before being shipped to a landfill site.
  • Because transfer stations aren’t free to use, indirect transfer is the more expensive option.

Based on your premises’ location, your transfer method may be out of your control. Businesses located far from landfill sites must rely on transfer stations to dispose of waste, which inevitably increases costs.

Many waste management providers have discounted rates with transfer stations and commercial landfills that are worth investigating.

Landfill costs.

Every time waste is disposed of at a landfill a landfill tipping fee is charged. On average, for commercial landfills, these range from $25-150 per ton.

As with transfer costs, many commercial waste management providers have preferential rates for customers at landfills.

The hidden costs of commercial waste removal.

Even when you’ve accounted for the four main cost categories of your waste removal bill, you may notice that there are some extra, unexpected charges on your bill. Keep these potential fees in mind when budgeting:

  • Dismount and push charges, which apply per bin when drivers have to get out of their vehicle and push your containers to an unobstructed spot for emptying.
  • Key charges, which apply per bin when drivers require a key to open a locked container.
  • Enclosure charges, which apply per bin when drivers must remove bins from a fenced enclosure and then replace them when emptied.
  • Gate service charges, which apply per bin when drivers must open a closed or locked gate.
  • Long walk charges, which apply per bin when your containers are placed in such a way that the drivers have to walk over a specific distance — such as ten feet — to access them.
  • Regulatory charges, which are depending on region, and cover the cost of providers complying with environmental regulations.

One way to avoid many of these charges is to evaluate the container situation on your premises and see if you can optimize the location to make it easier for haulers to collect your waste.

Reduce waste expenses.

This information might seem overwhelming. Waste expenses can really add up. Fortunately, there are steps you can take to optimize your services and reduce your expenses.

Start by considering an internal or external audit of your waste removal system. Are your bins being emptied too often, or not often enough? Could you be paying transport fees for a closer station or landfill? Are your prices increasing multiple times a year? Are your containers the right size for your waste output?

Ask yourself these questions and pay close attention to your waste removal bills. You might be spending more than you need to.

Cal Wilson / March 2, 2022

Five tips to minimize card processing expenses

As businesses are racking up debt and supply chain issues are increasing material expenses, cutting costs is more important than ever. With many businesses offering online shopping as an alternative to in-store, you might find your payment processing environment has changed or become more expensive.  

If this sounds like your business, here are five tips for reducing your credit card processing fees, and making the most of your revenue.  

1. Keep an eye on your rates.

Complete monthly audits of your merchant services statements to check for billing errors and avoid rate creep. Processors usually offer seemingly standard contracts, but many contain provisions that allow them to increase your rates. This often comes with the caveat they must notify you first — but those notifications could appear in small print on one of your statements. Be sure to read your statements for notification of rate increases and periodically check your rate to see if it has mysteriously increased. Often, all it takes for them to waive the rate increase is a phone call to object. 

2. Swipe cards and answer questions.

Credit card fees are primarily based on risk. This means you’re better off swiping or inserting a card than entering the number manually. Whenever a number is entered by hand, your processor considers it a higher risk transaction and may charge a higher fee. However, not all organizations have the resources to physically swipe or insert a card. If you’re inputting the card number manually, answer as many of the processor’s questions as possible. Providing information such as the customer’s zip code, debit vs. credit, and the three-digit or four-digit code on the back of the card are all designed to lower the risk of fraud. By entering as much information as possible and lowering the risk, you’ll see reduced transaction fees! 

3. Use an address verification service.

An address verification service (AVS), is a solution that verifies the cardholder’s billing address with the card issuer. It takes your payment services a step further in preventing fraud and has been a big benefit in the world of e-commerce, including limiting chargebacks. 

It works when during the checkout process, the customer enters their address, which is compared to the address on file with the issuing bank. Once the comparison is made, the issuing bank sends an AVS code to the merchant, who can then use the code to authorize or reject the transaction. 

Many major card issuers, including VISA and MasterCard, support AVS. 

4. Make sure PCI Compliance is up-to-date. 

A vendor will incur monthly fees from the Payment Card Industry (PCI) if its compliance questionnaire is not completed annually. These fees will continue to build up indefinitely until compliance forms are completed. The online questionnaire usually takes less than 30 minutes and saves hundreds of dollars every year. By completing the questionnaire, you assure your credit card processor that you are taking the proper steps to keep customer information safe and minimize the risk of fraud. 

5. Hire a professional.

An independent merchant services consultant will find you the lowest rates possible in your area, and can also track your rates going forward to make sure you’re never paying more than you should. For example, Schooley Mitchell looks out for your best interests by providing objective advice to reduce your electronic payment processing spend and improve service. 

Systematic analysis and auditing will: 

  • Uncover and eliminate hidden fees 
  • Identify and recover overcharges and billing errors 
  • Select and apply appropriate rate categories 
  • Ensure government legislation is properly applied 

In conclusion… 

Now is not the time for your business to be spending more than it needs to on credit card processing fees. In reducing costs and growing your bottom line, we hope these tips will be of aid to you.  

Cal Wilson / March 2, 2022

What is surcharging and should your business do it?

If you accept any kind of credit card payment, you may have heard of surcharging. It’s the practice of adding an additional charge to a customer’s purchase to cover the fees a payment processor requires for processing credit cards.

While it may seem like a win for you, the merchant, it’s not a completely problem-free practice.

In this article, we take a look at this practice. Should your business consider it? What are the pros and cons?

Why do some merchants surcharge?

Every time a customer swipes their Visa, Mastercard, American Express, or other kind of credit card, you incur a processing fee. These are called interchange fees. According to Quickbooks, the following variables impact a merchant’s interchange fees:

  • The credit card company
  • The type of card being used – i.e., whether it’s a rewards card, a business card, etc.
  • How the transaction is processed – POS, over the phone, or online.
  • The price of the product or service.
  • The type of business of the merchant.
  • Whether the transaction is domestic or international.

Likewise, rates change twice a year, in April and October.

Interchange fees are just one of the many fees merchants are charged to be able to accept credit card payments.

How does surcharging work?

Without surcharging, that fee lies squarely on the merchant.

If you’re looking to pass that expense onto the customer, you have two kinds of surcharging options; brand or product surcharging. Brand surcharging adds a charge every time a customer uses a card from a specific credit card provider; some merchants may add a surcharge, for example, on Visa purchases, but not Discover purchases. Surcharging on the product level, however, only adds surcharges on certain types of cards under a specific brand. Merchants may choose one option, but not both.

Surcharging is subject to different laws in different regions.

As you can imagine, in order to protect the consumer, surcharging is heavily regulated. In some places, it is not legal at all.

In fact, in the United States, surcharging is illegal in Connecticut, Maine, and Massachusetts. In Canada, service fees can only be added on certain kinds of transactions.

For the regions where surcharging is a legal practice, merchant are beholden to a surcharging cap. These vary by area, but often fall around 4%. The caps are put in place to prevent merchants from making profit from surcharges.

No matter where you are, if you surcharge, your business is subject to rules of disclosure. Merchants must disclose their intention to surcharge ahead of a transaction, and at multiple touchpoints while a customer is in the store. This includes such notices as a sign notifying the business’ surcharging practice at the store entrance, as well as at the point-of-sale. The surcharge dollar amount should also be clearly visible on the customer’s receipt.

While these practices keep surcharging ethical, they can also be off-putting to some customers, who only see the addition of a fee they might not completely understand.

Does surcharging save your business money?

There is no simple answer to this question. It can, but it depends on your business and your customers.

According to Evolve Payment, “[i]f your industry is a ‘race to the bottom’ where the lowest price wins, then surcharging is likely to hurt more than it helps. This is especially true in B2B industries with corporate contracts.”

For some businesses, adding fees like surcharges is going to be more common practice and expected by the customer. In other industries, it might hurt your chance of making a sale.

Fortunately, there are other strategies.

So your credit card processing fees are eating into your revenue, but you don’t think surcharging is the right move for your business. Not to worry – there are other things you can do to ease the expenses.

For example, instead of surcharging, many businesses offer cash discounting.  In this practice, merchants discount the price of purchase if the customer pays with anything other than a credit card. And, while surcharging isn’t legal continent-wide, cash discounting is.

Cash discounting is only possible if you have a certain amount of wiggle room on your markup pricing. However, when it is an option, it certainly is a bonus for customer experience.

Another tactic is setting a minimum for credit card payments. Depending on your rates, it may not be profitable to offer credit card payments under a certain dollar amount.

Another strategy is working to reduce your overall merchant services spend. Part of this is exploring what options are available to you among multiple vendors, knowing rates are fair, and how to negotiate for the best price. A cost reduction professional who specializes in merchant services might be your best asset if you take this route.

In conclusion…

As Evolve Payment says, “surcharging is, at the end of the day, passing business expenses onto your customers.”

While it has the potential of saving you money on your variable expenses, it’s not always a great strategy optically. Offering cash payment incentives, working to reduce your overall merchant services fees, and ensuring you’re paying the correct rates, are alternative strategies to reduce your spend while keeping customers happy

Cal Wilson / March 2, 2022

What are variable expenses and how can they impact your business’ bottom line?

When creating a budget for your business, it is helpful to separate and account for fixed versus variable expenses. Mistaking the latter for the former can cost you, and the better you understand all your expenses, the better chance you have of optimizing them.

If you’re unfamiliar with the concept, the best way to describe the difference is that fixed expenses are costs that stay the same from month to month, whereas variable expenses are ever-changing and harder to predict.

Fixed expenses.

Fixed expenses often represent the largest part of your budget. For a business, your fixed expenses are going be costs such as rent payments, insurance premiums, property taxes, and so on. While these are not easy to optimize, they are easy to work into your budget, as they are unchanging and paid at a consistent frequency.

If you can lower these expenses – say, by finding a different insurance plan that works for your needs – you automatically save more money each month or pay period.

In business budgeting, it is important to remember that all your fixed costs must be paid, regardless of your sales that pay cycle. If you’re starting a business, making sure you can cover these expenses for a period before you start bringing in revenue is crucial to staying afloat.

Variable expenses.

Your variable expenses are going to represent the costs incurred by how a given month or pay period goes for your business. How many credit cards you swipe, how much electricity you use, or how much waste you generate; all of these are going to incur a bill that varies every cycle.

Some of these expenses can be harder to reduce than others. How much heating you use to keep your office warm, for example, may be more difficult to lower than the amount of waste your organization is generating. However, in many cases, these expenses are in areas that you can strategize or work with professionals to identify savings, creating a more predictable monthly bill.

Employees can represent either kind of expense.

Depending on how you staff your business, your employees can be either a fixed or variable expense. Anyone hired on full time, who is guaranteed a forty-hour work week, will be a fixed expense, whereas a seasonal or part-time employee will likely be a variable expense, as their hours are subject to change month to month.

Budget with these expenses in mind.

When you’re budgeting, it’s important to separate your fixed costs and your variable costs. If you’re able to determine what you absolutely will be spending in your fixed costs, then it is easier to identify and strategize areas to save with your variable costs.

Month to month, keep track of your variable expenses. Maybe one month you allotted too little to certain expenditures and went over budget. If you keep a closer eye on each cost category, you can do a better job budgeting and planning for the future going forward.

Don’t settle on expenses.

The lower you can keep your costs, fixed or variable, the better the results for your bottom line. If you don’t have experience negotiating rates or deciding what expenses are fair in comparison with the rest of the market, don’t settle. Explore your options, bring in consultants, and work with professionals who can guide you in the right direction.

Especially for the fixed expenses you will be locked into for some time, this could be a make-or-break decision for your business. Why pay more than you have to?