The financial industry is often viewed with a lot of contempt, with the financial services providers such as brokers and bankers particularly coming under fire for not creating anything and subsequently not adding any real value to the world, yet they are the ones who are operating in a position which gives them the potential to make tonnes of money. They probably don’t care though and they’ll keep pushing deals and trades to rack up their commissions.
There are however some products and services within the financial sector whose existence is more than justified, such as credit card processing as a service which would mean that buying customers can still complete their purchases without the risks associated with carrying physical cash. So the financial sector is not all bad.
Your local grocer’s is perhaps looked at with a bit more fondness as they’re providing goods for sale which would make for a logistical challenge for you to purchase them directly from their source, but when one comes to look at it, they’re also not really producing anything. They’re merely selling convenience — the convenience of being able to go to just one location and stock up on all your household goods and supplies.
But how do these physical goods sellers gain a competitive advantage however when the end-client retail price of those goods is perhaps pretty much the same for all other competing retailers? This would be a matter of even more importance to you if you were looking to get into the retail space, whether as a full scale retailer or indeed if you aim to target a small segment of the market.
Driving down “production” costs
I put “production” in quotation marks because as mentioned, if you’re a grocery store owner or similar type of retailer selling physical goods, chances are you don’t manufacture or produce those goods yourself, but rather source them elsewhere like from their production factory, have them delivered to your store and then resell them after adding your mark-up to account for some profit margins. So in a world where the retail price you’d be offering is not all too different from that of another retailer, you gain that tiny competitive advantage by working to offer the best price to your customers.
A customer won’t mind walking a couple hundred metres further than the first outlet they come across if that extra couple hundred metres could equate to cost savings as small as mere pennies on the pound. For the storeowner who benefits out of that it all incrementally adds to the bottom line, so you can continue to offer lower prices, however slight the difference is, all the while benefitting from the increased trade volumes created by more buyers patronising your goods.
Something as simple as deploying credit card machines is one of many ways through which to gain that competitive advantage you can put into the pricing of your goods since credit and debit card payments incur less charges on whatever transaction is being completed (if any at all) and those slight margins in saved fees could add up quite considerably.
Email Merchant Account Solutions if you want to deploy this and other POS solutions to save more and perhaps pass those savings onto your customers as well.