Figuring out payment solutions isn’t the prettiest part of owning a salon, but it can be a crucial step in optimising savings. Smartpay, the leading zero cost EFTPOS provider, shares with us some ways to cut the costs.
It’s the most wonderful time of the year – Christmas is around the corner, summer is well underway, and salons are packed with customers pampering themselves for the holidays.
For many of us, the festive period is not only about sharing gifts with loved ones, it’s also a time where the “treat yourself” attitude seriously comes into play.
Thanks to the simplicity of digital wallet payments – which have increased by 90% since the pandemic – it now couldn’t be easier to indulge yourself in the latest beauty treatments by simply lifting your phone.1
But while this ease of purchase means soaring revenues for salons, the move towards a cashless society also means increased EFTPOS costs for SMEs – particularly for those paying variable rates per transaction.
“When Covid hit, everyone was paying via EFTPOS, and our costs got to a point where we could no longer absorb the fees,” said Cesare, owner of Glenrose Beauty Gallery, who was paying around $1,000 per month to cover the costs.2
Eclipse the Essential Spa tells a similar story, paying up to $2,000 per month to the bank. “Our card transaction costs were getting out of hand, and we were considering increasing our prices,” said owner Tracy.3
Considering only 20% of SMEs across Australia and New Zealand feel their business is back to pre-Covid conditions, a whopping end of month bill is enough to really get under the skin.4
A beautifully simple solution
As consumers trade in their coins for cards, beauty professionals are increasingly embracing surcharging to bring a healthy glow to their business.
A zero cost EFTPOS solution allows you to automatically pass on your merchant fees and save on that EFTPOS bill. From supplies and operating costs, to staff wages and rent – surcharging is an easy way to redirect money back into your business and reinvest in what really matters.
Since switching to Smartpay, Glenrose Beauty Gallery has saved $12,000 per year in unnecessary EFTPOS fees. “The surcharge is calculated automatically, so there is no staff training. The switch across from our bank was seamless, and their customer service has been excellent,” said Cesare.
Saving $10,000 per year after making the switch, Eclipse the Essential Spa felt its own rejuvenation. “The terminal arrived, and it was all simple plug-in and play stuff.”
But will surcharging cause frown lines for clients?
“Our clients have been very supportive, and 98% have no issue,” Tracy says, while Cesare’s clients understand why his salon switched to surcharging.
As 63% of SMEs notice an increase in people supporting local business post-Covid, surcharging will raise less eyebrows than you think as consumers sympathise with the challenges faced by businesses today.5
With January fast approaching, now is the time to refresh your payment regime so that it isn’t just your clients who can say ‘new year, new me’. And with Smartpay’s stress-free solution, you can even make the switch without changing bank accounts.
Sign up, receive a terminal, continue selling – it’s beautifully simple.
Visit smartpay.com.au to find out more or speak to a payment specialist on 1800 982 834.
1 Mastercard’s State of Pay Report, 2021, https://www.mastercard.com/news/insights/2020/the-global-state-of-pay/
2 Glenrose Beauty Gallery – Covid switch saves beauty salon $12K p.a. https://www.smartpay.com.au/case-studies/covid-switch-saves-beauty-salon-12k-p-a/
3 Eclipse the Essential Spa – Zero Cost EFTPOS rejuvenates spa with $10K savings, https://www.smartpay.com.au/case-studies/zero-cost-eftpos-rejuvenates-spa-with-10k-savings/
4&5 Smartpay’s Merchant Pulse Survey, August 2022 – 1124 merchants surveyed across Australia and New Zealand during the months of August and September 2022.
This article was produced by SmartPay.
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