Case Study – BMW & Mercedes Dealer – Merchant Services
Case Study: How A BMW & Mercedes dealer saved over $12,000 per year on their merchant services expenses
BENEFITS SUMMARY:
Significant reduction on merchant services costs
SERVICE:
Risk-free review of merchant services cost structure and search for cost saving solutions.
SITUATION:
A BMW & Mercedes dealer in Michigan employed Don Johnston of Schooley Mitchell of Detroit to audit their merchant services account in order to locate savings. Schooley Mitchell reviewed their merchant services cost structure and conducted a thorough analysis that took into account their current payment integrations.
ANALYSIS/RECOMMENDATIONS:
Because Schooley Mitchell is completely independent of all vendors, we’re able to consider all the options available to our clients in the marketplace –including their incumbent vendor. In this situation, our client was operating with a POS and CRM system that were directly tied in with their vendor, meaning that a switch would cause significant interruptions to their services. After considering the type of business, their merchant services structure and the available options, Schooley Mitchell compiled a detailed Value Report that showed the existing structure and a pre-negotiated future state.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 merchant services.
RESULTS:
The BMW & Mercedes dealer were fairly locked in with their incumbent provider, both with contracts and their POS integrations. Despite this, Schooley Mitchell was able to find them savings with their incumbent by reducing the rates on their Interchange fees. Our negotiations saved the dealer over $1,000 a month on their services and required no changes to their current processing environment in order to implement the rates. Schooley Mitchell will continue to conduct continuous post-audits to find even more savings, and research ways to minimize service interruptions if our client decides they need to switch vendors in the future.
