Parts cost at 18%, is it really possible?
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By autoguy
What's everyone using and what do you prefer in terms of online parts ordering? Are you using something integrated into your shop software or a standalone website from napa, o'rielly, advance, autozone, or other local or regional parts supplier? What do you like about it?
Using Napa Prolink and AdvancePro along with worldpac speedial
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By tco
Accepting Credit Cards at 0% cost
Credit card fees for merchants have drastically gone up in recent years, especially for reward card purchases, making credit card fees one of businesses largest expenses. Interchange fees for reward cards have gone up by 24% in a recent 4-year period. The highest reward card fees to a merchant are now around 3% of the transaction total (not including what the markup from whomever sold you their credit card processing). Many people have probably seen Samuel L. Jackson TV commercials promoting Capital One’s Quick Silver credit card, paraquoting, “The Quick Silver credit card will give you 1.5% cash back on all of your purchases.” Who do you think is actually giving these customers 1.5% of their cash back on their credit card purchases? You guessed it- you, the merchant.
What’s a business owner to do?
Do nothing Raise the products or services prices to account for higher credit card fees Offer a cash discount Don’t accept credit cards Or, provide your customer a choice when they pay with a card to pay a surcharge or not- 0% credit card costs to the merchant All of these options have their pluses and minuses, but with the ever higher and higher fees credit cards are charging to merchants, there are other methods where technology and consumer choice can help mitigate these fees.
0% credit card cost is relatively new legal method of accepting card payments in the US. The credit card companies fought to not allow consumers a choice to pay a surcharge with credit card or zero fees with a debit card. The credit card companies make much less money with a debit card opposed to a credit card... This case went all the way to the US Supreme Court this decade. The credit card companies lost and consumers being able to choose to pay a surcharge with a credit card or zero fees with a debit card is now legal in 45 states. The remainder of the 5 states will likely be joining the other 45 states in the near future as there are still ongoing court proceedings.
The US is now following the Australian model which has been allowing merchants to surcharge since 2003. Currently, 42% of all merchants in Australia pass on a surcharge to customers who use a credit card.
Here’s an option that you might not know about, until now:
When your consumer decides to pay with a card, they have two options. If they use a credit card, a small fee will be charged to their card. If they use a debit card, there will be no fee to the consumer. Our software does all the work and explains to the customer of their choice prior to the charge being authorized.
What exactly are the costs to the merchant and to the consumer?
For credit cards: Merchant pays zero credit card fees, the consumer pays 3.5% of the transaction amount
For debit cards: Merchant pays 1% + $0.25/authorization, the consumer pays Zero fees
Facts:
A card swiper is not needed: credit card information can be typed in a phone, computer over the phone and in-person. A 'brick' card swiper/dipper is available if needed.
Works with online sales/invoices
Simple application process, no upfront cost, no term contract, no cancellation fee and complies with all credit card rules and regulations
If you auto batch by 8:00 PM EST, you get your money the next day
Up-and-running within a week
Benefits to the Merchant:
Being fair to your consumer by offering them a choice to pay a fee or not, while eliminating your credit card fees, which can be up to 3% of your total credit card sales.
Simple to use and all charges are viewable through real-time online portal.
Support: our team is there when you need us, but it truly is very straight forward.
We realize this solution is not for everyone. But, you now have the opportunity to no longer pay credit card fees, forever. Reach out through ASO or here if you are interested in discussing further: https://www.lomasolutions.com/contact
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By tirengolf
I was looking for some input into advertising. I have really not done any the last 25 years. We are rebranding or should I say changing directions a little. Going back to tires, brakes ,alignment and maintence. When I did it last other than the phone book we did a little newspaper. I think those have basically gone. So many options out there, I just do not want to throw a bunch of money away on the wrong advertising. Any help would surely be appreciated. Sincerely David
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By tco
Loma Solutions represents a 0% credit card fee solution. We have 1000's of customers in the US and our solution makes auto shop owners thousands of extra dollars every year.
How does 0% processing work?
When your customer decides to pay with a card, they have 2 options. If they use a credit card, a small percentage of the transaction will be charged to their card. If they use a debit card, there will be no fee to the customer. Our software does all the work and explains to the customer of their choice prior to the card being authorized.
What exactly are the costs to the merchant and to the customer?
For credit cards: Merchant pays zero credit card fees, the customer pays 3.5% of the transaction
For debit cards: Merchant pays 1% + $0.25/authorization, the customer pays 0 fees
Facts:
- A card swiper is not needed: credit card information can be typed in a phone, computer or over the phone. There is a 'brick' card swiper if needed*
- No set-up costs or any other fees
- Our agreement is month-to-month
- If you auto batch by 8:00 PM EST, you get your money the next day
- The solution complies with all card rules and regulations
- We'll have you up-and-running within a week
Benefits to the Merchant:
*** You are being fair to your customer by offering them a choice to pay a fee or not, while you are eliminating your credit card fees, which can be up to 2.5% of your total card sales.
- Simple to use and all charges are viewable through our real-time online portal.
- Support: our team is there when you need us. We will show you and anyone on your team how to use the solution, but it’s very straight forward.
Making you more money!
If your current credit card fees are 2.5% of your total card sales, for every $50,000 in credit card transactions, you'll put an extra $1,250 in your pocket.
* we will provide you with a ‘brick’ terminal: $35/month if needed. This includes free paper re-supplies.
Reach out if you'd like to discuss. -
By AutoShopOwner
Advance Auto Parts Expands TechNet Program with New and Enhanced Offerings for Professional Shop Owners Improvements designed to help strengthen relationships between shops and customers
RALEIGH, N.C.--(BUSINESS WIRE)--May 29, 2019-- Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers, is introducing new benefits and enhanced offerings to TechNet Professional members in 2019. These new benefits and offerings include insurance and affinity benefits, enhancements to the nationwide warranty, digital menu boards, a TireAmerica.com partnership and a TechNet-branded Virtual Vehicle tool.
TechNet is a business solutions partnership program from Advance designed to help independently owned repair facilities grow their business and develop customer loyalty while maintaining their own identities and serving their local communities. More than 10,000-member shops across the United States and Canada are part of the TechNet banner program creating a trusted network of automotive repair shops across North America.
“We continue to listen to our TechNet members, many of whom have been partners of the program for more than 20 years, and are leveraging the feedback of shop owners and operators to introduce new benefits and optimize the banner program,” said Walter Scott, Senior Vice President of Professional Marketing and Programs at Advance. “TechNet is a key component of delivering the right experience and solutions to Professional customers. Ultimately, we strive to help our customers serve their customers better and grow their business as independent operators.”
The launch of a new insurance and affinity benefits program was a top priority to current TechNet customers. The insurance benefit program enables TechNet member shops to access health insurance plans for the individual, family or small business, including medical, dental, life, prescription discounts, disability and pet insurance. Business coverage, as well as HR and payroll services, launched in May.
Among the new enhancements for 2019, TechNet’s nationwide warranty has been simplified for an improved customer experience for both motorists and member shops. When motorists have service and repairs performed by an authorized TechNet professional service facility, they are covered by a nationwide limited repair warranty that extends across North America for 24 months or 24,000 miles, whichever comes first. At the same time, TechNet also increased value for member shops by increasing the rate paid for local labor reimbursement claims.
The TechNet digital menu board is a new benefit included in membership that displays the shop’s services and pricing, as well as educational programming related to car maintenance and care, on a smart TV in the customer service area of a TechNet member’s shop. This digital menu board is customizable, enabling shops to make updates in real time to showcase their offers, and TechNet can also provide custom content tailored to the shop’s program preferences.
TechNet’s new national installer program partnership with TireAmerica.com gives shop owners the ability to offer their customers access to Tire America’s inventory for a wide range of vehicles. This partnership allows customers to select the necessary tires for their vehicle online, with Tire America shipping the tires directly to the TechNet shop for installation.
Virtual Vehicle, another important element of TechNet, supports the service recommendation by bringing the inspection results to life via vehicle system animations that illustrate the cause and effect of each problem. The inventory of more than 400 animations can be viewed in the shop lobby or can be emailed or texted to the customer allowing them to make an informed decision with confidence. Virtual Vehicle is also integrated with several shop management systems that enable the animations to be included in a regular communication process, and can easily sent to a customer via text or email. Finally, a customized loop of animations can be served on a lobby monitor or embedded in the shop website providing customer education opportunities.
“The enhancements introduced recently are programs that truly benefit our business,” said Christa Browne of Dave’s Automotive in Stockertown, Pa. “For example, increased labor rate reimbursement for warranty items speaks volumes to Advance’s commitment to bring us the best quality parts backed by the best industry warranty. We’re keeping our customers very happy knowing we stand by our work. That is commitment.”
For more information about TechNet and other services available from Advance, visit technetprofessional.com or call 1-877-280-5965.
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of April 20, 2019, Advance operated 4,931 stores and 146 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,238 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos, British Virgin Islands. Additional information about Advance, including employment opportunities, customer services, and online shopping for parts, accessories and other offerings can be found at www.AdvanceAutoParts.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190529005545/en/
Source: Advance Auto Parts, Inc.
Advance Auto Parts Contact:
Media Relations
Darryl Carr
T: (540) 589-8102
E: [email protected]
Investor Relations:
Elisabeth Eisleben
T: (919) 227-5466
E: [email protected]
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