Case Study – Bicycle Store – Merchant Services
Case Study: How a Bicycle Store Saved Over $6,000 in A Quarter
BENEFITS SUMMARY:
Significantly reduced fees for credit card processing accounts.
SERVICE:
Risk-free review of electronic payment processing cost structure and search for cost saving solutions.
SITUATION:
A bicycle shop in Michigan employed Don Johnston of Schooley Mitchell of Oxford to conduct a cost-saving analysis of their merchant services cost structure to optimize their bills. We reviewed their services and conducted analysis to locate any possible cost-saving solutions while maintaining a similar level of service.
ANALYSIS/RECOMMENDATIONS:
We reviewed their current merchant services cost structure, and, since we are independent of all vendors, our cost saving recommendations considered all options in the marketplace which included the current provider. After considering the type of business and the average number of sales they conducted via credit card, we compiled a Value Report that detailed the existing environment and a pre-negotiated future state. The Value Report included several profit-increasing recommendations, which included the current and alternate providers. Because we have structured over 21,000 deals, use proprietary software for analysis and have the negotiation power of a large national organization, we were able to come up with multiple cost saving recommendations for their wireless services.
RESULTS:
Schooley Mitchell of Oxford found cost savings of over 44% for the client with a new vendor, but the client chose to take another of our recommendations in order to remain with their current vendor with savings of 22%. Once the client selected the cost saving recommendation, Schooley Mitchell handled the implementation. We were able to effectively organize their merchant services, and our client was thrilled to find that their savings with their incumbent vendor ended up being even higher than our projection. In fact, the client saved nearly $6,000 on their merchant services in the first quarter upon implementation. Our client was thrilled with not only the savings, but also the time we saved them by taking the management of their merchant services off their plate. Schooley Mitchell will continue to manage their services going forward.
