January 30th, 2018
Now, I didn't say you have to like it. But you should definitely learn from it.
As a payment processor, I work in a retention industry. So, while getting a sale is great, maintaining a relationship and keeping a client is much, much better because we make money every month off of our clients based on their processing volume. As the saying goes, it's easier and less expensive to keep an existing client than it is to find a new one. In my industry, most established businesses already have a relationship with a processor, so typically my sales pitch is designed to compel them to switch. There are times where merchants are open to switching because of bad service, outdated equipment, or a host of other possible reasons, but more often than not, their primary motivation for switching is to save money.
That's where I come in. As a skilled professional, I'm well versed in understanding a processing statement - which is intentionally designed to be difficult to understand. I can easily recognize their pricing structure, figure out what the other company's profit margins are, and present the findings to the merchant. There are times where their pricing is already competitive, and I'll let them know that. But, frequently their pricing isn't competitive or they're being grossly overcharged.
Typically, when that's the case it's a fairly easy sale. Every once in a while, I'll run into that merchant who will take my proposal back to their existing provider and ask them to match the deal that I'm giving them - essentially leveraging my knowledge and expertise free of charge to get a better deal, leaving me out in the cold. It's happened a few times. That seems like a pretty crappy thing to do right? I would agree with you. Not necessarily because they've wasted my time (after all, it wasn't a waste on their end), but more so because they're willing to trust a company that has been ripping them off all along.
If you found out your mechanic was ripping you off - overcharging you for certain things or charging you for things he didn't actually do - would you continue to take your car to him even if he promised you a discount in the future when you called him out on it? Probably not. So, how someone could trust a bank or payment processor who's been gouging them all along is beyond me.
But here's the good news: that prospective client is actually doing you a favor. Ultimately, that's not the kind of client that you want. Someone who has so little regard for your time and expertise is going to be a headache as a client and will make your life miserable. When I had that epiphany, it blew my mind. I know this is difficult for many sales professionals to fully grasp, especially if their struggling with low numbers, but you don't want every single prospect as a client. The qualification process should be designed for you guys to feel each other out to make sure it's a good fit for everyone. This is especially true in retention oriented businesses. So, when that prospect strings you along and leaves you high and dry, be thankful. For as much time as they've wasted, they've saved you lots more by exposing who they are and how they are. You're a professional, not an order taker. The sooner you realize that, the better and more enjoyable your sales career will be.
March 4th, 2019
Maryland House Bill 777 *UPDATED*
On April 30, 2019. Governor Hogan signed HB777 into law. To read more about the bill visit www.magothy.biz/hb777 Maryland’s HB777 and its senate companion SB694 were designed to bring more transparency to the payment processing industry in the great state of Maryland. The Problem: Many small businesses get locked...
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January 17th, 2019
Cause For Advocacy
Have you ever heard the saying, “One bad apple spoils the barrel?” It’s true, ya know. An overripe, spoiled apple will emit significantly higher levels of ethylene gas causing other apples around it to overripen as well. We often use this saying or variations of it to describe how low character people can be bad influences on...
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November 7th, 2018
The Flat-Rate Unicorn
There are a number of companies advertising simple, flat-rate pricing. Many times it's neither simple nor flat. This pricing model gambles on the kinds of cards a business is accepting. One popular "flat-rate pricing" company advertises a simple "2.75%" per swipe. That sounds great, right? Well, not really. Because...
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September 30th, 2018
Do you want me to regret bringing you on as a client?
Sometimes, you have to ask your prospective clients tough questions. When you work in a retention industry like I do, the only thing worse than not landing an account is landing the account with margins so thin you're basically working for free. In today's economy, we're seeing the commoditization of almost everything. This is due to a...
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Magothy Payments came as a recommendation from our accountant who realized how much we were paying with our old company. Jaron made the process very easy by reviewing our old statements to see if there was any room for saving. After our consultation, he offered to use Magothy payments for one month and if we didn't see any savings we had the option to walk away without losing anything. Jaron has been upfront from the beginning and has been there promptly to address any concerns we have with our system. I highly recommended Magothy Payments!
Dr. Hetal Rana, Eye Associates
Worldwide Waterproofing changed payment processing companies in 2016 after 14 years of being with the same provider. We had a great initial meeting with Jaron and felt comfortable with his knowledge and expertise. Working with a local company that is easily accessible made sense for us. We hadn't really tracked our credit card costs over the last several years, so we were BLOWN AWAY when we saved more than $2000 in our first month alone. This was the by far the best decision we could have made. We get our deposits next day, the platform is easy to use, and we finally have a relationship with the company funding our transactions. I couldn't recommend Magothy Payments enough.
Summer Hoder, Worldwide Waterproofing
Magothy Payments has been GREAT for our business. We get calls from merchant services vendors every day. But when you need service from THEM, they are nowhere to be found. This never happens with Jaron and his team. Their personalized service is outstanding, and our costs are down too! I highly recommend you consider Magothy Payments for your business.
Bruce Spencer, Walt Eger's Service Center
The team at Magothy Payments is nothing short of SPECTACULAR and I can't recommend them enough! If you are tired of wondering if you are paying too much for your credit card processing and harassing daily calls about saving you money, I can assure you that Magothy Payments is your BEST option. Local, Personal and Professional, their integrity shines through at every service opportunity. The statements are transparent, the rates are the lowest, and they are focused on a long-term relationship that will save you money. Everyone that I have referred comes back to me very satisfied and glad that they made the change.
Andy Byrd, Victory Awards & Promotions