What if you could make 10% more from your hair removal business by making one change today? You may be wondering: is that even possible?Well, it is. You don’t even need new customers. And it won’t even take too much of your time. First, take a look at your revenue and how payments are made at your hair removal clinic. You’ll notice something: credit card transactions. With each transaction, you pay fees up to 4%! That’s ridiculous and unacceptable. Take those credit card fees away, and recalculate your profits. You’ll notice something: they’ve gone up by more than 10%! That brings us to the point of this article. We want to show you how to get free credit card processing and help your hair removal clinic earn more. In this article, we’ll tell you all your need to know about zero fee credit card processing for your hair removal salon.
Why your hair removal business should care about credit card processing fees
Whether you’re selling hair removal devices, run a wax center, or have a laser hair removal clinic, you’ve entered a good market. The hair removal devices market size is expected to reach $3.4 billion by 2025. Hair removal services generate billions per year, as well. The point is this: there are ample opportunities to make good money. Why squander it by paying too much in credit card transaction fees?More importantly, you’re helping people. Hair removal provides many benefits. It helps avoid ingrown hairs, softens the skin, and improves appearance and confidence. Again, the point is clear: you want to continue helping clients. To do that, you need to take care of your finances. Why let credit card transaction fees hurt your finances?Additionally, you’ve made a big investment to start your hair removal business.
Startup costs can easily exceed $100,000, especially if you need a laser hair removal system. You also have ongoing expenses, such as labor, rent, inventory, marketing, equipment, and insurance.
You had to obtain licenses and permits, and you must continually adhere to salon protocols.
Simply put, you’ve worked too hard to let something like credit card fees hurt your business. Here’s what you need to know: you can get rid of credit card processing fees and increase your hair removal company’s profits by more than 10%.
How much does your hair removal business pay in credit card fees?
Obviously, exact amounts vary among hair removal businesses. But we can say that, for most hair removal clinics, profits jump by 10% if you eliminate credit card fees. Calculate how much you pay in fees and see.To make this more clear for you, let’s do an example. Your hair removal clinic brings in $400,000 in revenue per year. After all expenses, including taxes, you have $80,000 left in profits. That’s solid and above the average beauty salon owner’s salary, which is $75,000 per year.Now, let’s say 60% of your revenue comes from credit card payments. That’s $240,000 per year subject to credit card processing fees. As research from ValuePenguin shows, credit card payment network fees can easily exceed 3%.
There are other fees involved with a credit card payment, including the interchange fee (paid to the bank) and the assessment fee (paid to the brand). You also have the payment provider markup. Add it all together, and an average credit card processing fee of 3.5% per transaction is common for hair removal business owners. So, on $240,000 worth of hair removal salon revenue, you pay 3.5% in fees. That’s a total of $8,400 in credit card processing fees per year. What if you had free credit card processing? Your profits would jump from $80,000 to $88,400. That’s an increase of 10.5%!Clearly, independent businesses like your hair removal clinic need cheap credit card processing. It will make your salon much more profitable. The good thing is that zero fee credit card processing is possible. We’ll show you how you can get it.
Step 1: Find a better payment processor
Follow these steps to get the best merchant service provider (MSP) for your hair removal business:
Choose pass-through pricing: Avoid tiered pricing. Because you can’t always know how transactions will be categorized, you’ll often end up paying more than expected. Pass-through pricing charges you directly and is therefore much more transparent (and nearly always cheaper).
Know the fees: Look for MSPs with the lowest overall fees. When comparing, remember to add up the interchange fee, network fee, assessment fee, and MSP markup. Know you can negotiate the MSP markup to further reduce costs. Narrow down to three of the most affordable payment processors.
Examine the services: Don’t go with the cheapest MSP. Choose an affordable payment processor with quality hardware and software, good customer service, solid security, and all the payment capabilities you need, such as in-person point-of-sale, virtual terminal credit card processing (online), and mobile payment processing.
By negotiating with affordable, high-quality MSPs that offer pass-through pricing, you ensure your hair removal business gets the best possible payment processor. That will save you money and provide your clients with a better experience.
Step 2: Use a credit surcharge program
Even if your hair removal business has the best possible payment processor, you’ll still be paying credit card transaction fees. So, do you offset those fees to get to zero-fee credit card processing? Enter the credit surcharge program, your strategy to eliminate the impact of credit card fees on your finances. Here’s how it works:
A patient comes to your clinic for hair removal. They have the option to pay any way they want, but you have a credit surcharge program in place (marked by signage).
When the client makes a payment for hair removal services or a hair removal device, you give them a choice:
Save money by paying with cash or debit card.
Choose the convenience of a credit card and pay a fee to cover the processing fees. At NadaPayments, for instance, clients paying with a credit card pay a 3.5% fee, which offsets the impact of credit card fees on your bottom line.
Credit surcharge programs are 100% legal, thanks to the Dodd-Frank Act. Your hair removal clinic can utilize this strategy to stop the impact of processing fees and boost profits. Even better, a surcharge program will be welcomed by clients, as they can save money by paying with cash or debit card.
Ready for free credit card processing?
With a surcharge program, you give clients the convenience of using a credit card or the chance to save by paying with cash or debit. You also help your hair removal business avoid credit card fees. As you can see, credit surcharge solutions are truly win-win. At NadaPayments, we’re ready to help your hair removal clinic get free credit card processing. Our surcharge solution integrates with your credit card installment plans and only takes a day to implement. Free credit card processing is just a click away for your hair removal business. Call us at +1 (929) 293-1800 or click the link below.