Tighter Reign on Credit & What It Means To You as a Business Owner

9 Predictions for Credit Cards in 2009 is an SCARY but TRUE article about what card issuers are going to do to card carriers as this economy keeps tumbling.

This will have a significant impact on spending at YOUR business and everyone else around you also.  For your potential customers- Harder to get credit, less credit to spend, and heavy fees for card holders, so that issuer banks can make up for lost revenue from less spending and new government regulations.  Regulations that clamp down in one area and leave room for abuse in another.

Credit card processing/acceptance fees on the business owner side has to be analyzed by an expert and reduced anyway possible.  A reduction of even $1000/yr is HUGE if you look at how much product/service you have to sell to end up with a net $1000 that you can give away to your current credit card processor.  Is your credit card processor the charity of your choice to give $1000 to pad their bottom line?

If you have a 10% net margin, then you’d have to sell $10, 000 dollars of products/service!  How much work is that?  How much money does it take to acquire the number of customers you need to create that much volume?  How much time is that WASTED in servicing, fulfillment & management?

Every penny will count in this current economy.  It’s not going to be a short ride either from all accounts.  The government will not give a bail-out to our individual small businesses if we can’t compete.

We need to plug leaks and save where we can, and turn on the faucet and be aggressive about creative marketing and customer service for the purpose of maximum retention.  We have to train our staff to be dilligent and to be above exceptional in regards to customer service and satisfaction, because all the smart entrepreneurs will do the same!

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