You could invest back into your business—whether it’s employee training, new equipment, or a killer marketing campaign.
So, you’ve got your salon or spa up and running, and things are going pretty well. You’ve got happy customers, and you’re offering top-notch services. But let’s get into something often overlooked: credit card processing fees. It might sound like small potatoes, but these fees can actually make a big difference in your bottom line.
Today, we’re going to break down why you might want to reconsider using popular options like Square, which comes with a 2.65% fee, and maybe go for something a bit more wallet-friendly.
The Nitty-Gritty on Fees
First off, let’s get clear on what credit card processing fees are. Basically, it’s a little percentage that the credit card companies take off the top of each transaction. Square makes it simple with a fixed 2.65% rate, but you can find other options out there offering rates as low as 2.28%.
Do the Math: Real Numbers, Real Savings
Let’s say your salon pulls in $20,000 a month from credit card payments. With Square’s 2.65% fee, you’re looking at $530 going out the door each month just on fees.
But what if you went with another provider that charges a 2.28% fee? Your monthly fees would drop to $456. It might seem like a small change, but that’s $74 saved each month.
What Long-Term Savings Look Like
Now, $74 a month might not sound like a game-changer, but let it add up over a year and you’ve got $888 in savings. Extend that over five years, and you’re looking at an extra $4,440. That’s quite a bit of cash you could invest back into your business—whether it’s employee training, new equipment, or a killer marketing campaign.
Other Stuff to Think About
Of course, lower fees sound great, but don’t forget to consider the whole package. Make sure the cheaper option also provides the kind of service, security, and features that your salon or spa needs. Saving money is fantastic, but not if it costs you in other areas.
Wrapping It Up
Running a salon or spa means juggling a lot of details, and your choice of a credit card processor is one you don’t want to overlook. A lower fee can lead to substantial savings over time—money that you can reinvest to make your business even better. So take a bit of time to shop around and make a well-informed decision. Your future self will thank you.