Whether you are a retail, restaurant, software or service business reducing online ordering costs is important to increase your profits. Take eBay for instance, if you sell products on their platform you pay about 12% of gross sale price, plus PayPal fees of 2.9% plus $.30 per transaction. If you sell that same product through your own website you save that 12% eBay fee. If you set up your own merchant account, instead of going through PayPal, you may be saving additional 1%. Even 1% savings on $100,000 of gross sales is a savings of $1,000 for your business which is a significant savings.
Takeout Rocket – Online Ordering Made Easy!
Reducing Online Ordering Costs by Using Your Website
There are many sellers using platforms like eBay, Etsy and Bonanza. If you don’t have your own website or don’t want to go through the hassle of setting one up, then those selling platforms may be worth it. However, there is a lot to be said about building your brand, and it has never been easier to do that, especially online using various software tools and social media. There are a number of software programs that integrate the social media platforms to help you promote your products and services and website. Most social media tools have free versions that you can try before deciding to pay for their premium features.
Reducing Online Ordering Costs through Merchant Processing
As we mentioned above, standard fees charged by PayPal are 2.9% plus $.30 per transaction. If you sell most of your products at $30.00 you are paying $1.17 to PayPal per transaction, which equals 3.9% and is considered to be high as merchant processing rates go. If you sell most of your products at $20.00 you are paying $.88 to PayPal per transaction, which equals 4.4% and is very high to be paying for credit card processing and significantly adds to your overhead. Check around and get some quotes to see how you can lower your rates. Takeout Rocket has a very competitive rate it provides as part of its online ordering program for restaurants and it is bundled in our software with great features to help restaurants increase their takeout orders.
Restaurants Can Reduce Online Ordering Costs with Takeout Rocket
There are a number of options available today that make reducing online ordering costs for restaurants quite easy. Several years ago there were only a few options like GrubHub, Seamless and Eat24. These online ordering companies still charge between 10% to 30% and some even tack on an additional five dollars per transaction. With these kinds of numbers restaurants barely make a profit.
Well today, reducing online ordering costs for the restaurant industry is easy thanks to companies like Takeout Rocket. We don’t charge a percentage and provide social media promotion and in-store marketing materials to restaurants all as part of our monthly fee. While some restaurants will work with two or three online ordering companies because they want the exposure online, they don’t realize that most of their business is simply repeat business from their regular customers. That makes online ordering for these restaurants quite expensive when they pay 10% to 30% for what amounts to very simple online ordering software. It’s not rocket science so why overpay?
Don’t Pay a Percentage-based Fee
Probably the best advice we can offer is no matter what online ordering program or software company you go with, don’t agree to a percentage-based fee of your sales. When you agree to a percentage-based fee you are making the software company your silent partner that takes its profit off the top.
Example: if a customer places an online order for $30 and your restaurant has a 40% profit margin on average and you have to pay in online ordering company 15% (equal to $4.50), you are giving up almost 38% of your profits to your silent partner, a software company with a simple online ordering solution. Talk to your accountant and look for some other lower-cost online ordering solutions. Feel free to discuss with him Takeout Rocket’s monthly rate $49.99 per month and have him run numbers. We are sure you will be impressed with the savings that Takeout Rocket can deliver by reducing online ordering costs for your restaurant.
Using a POS System with Integrated Online Ordering
Most POS systems will charge $50.00 per month to integrate online ordering from your website. Seems like a good deal, but is it? Let’s take closer look. Is the POS or merchant processing company giving you a bundled deal with features like 100 social media posts per month and push notifications to promote your restaurant? Are they giving you free in-store promotional materials to promote your takeout business? Are they including ordering from Facebook? How about mobile apps, are they including iPhone and Android apps to make it easy for your customers to order? Well Takeout Rocket does all that for $49.99 per month. If you still want to integrate with your POS system, give us a call and we’ll give you a flat rate quote, or you can use our tablet. Takeout Rocket’s hardware and set up cost is just $199.00. So you see, $50.00 per month to integrate online ordering into your POS system is not going to help in reducing online ordering costs if the POS company is not going to actually do social media posting, link building, provide push notifications when you run specials or discounts and provide in-store marketing materials at no additional cost. That is why Takeout Rcoket offers all that as a bundled service for $49.99 per month.