How Cash Discounting Can Help Your Autoshop Business Save Money
The automotive repair shop industry is a challenging and demanding field, and paying off credit card processing fees can be another obstacle when you’re trying to run your business. Automotive shops can bring in thousands of dollars per transaction; however, credit card fees can start to take away some of those profits. During times of high inflation, it is more important than ever for businesses and customers to make the most of every transaction. Luckily, there is a solution… cash discounting.
What is Cash Discounting?
Here’s how cash discounting works: Your customers are given the choice to pay their bill with their credit card, which includes a service fee, or they can choose to pay with cash and receive a discount on their bill. Offering an incentive for customers to pay in cash instead of a card eliminates many processing fees.
The Benefits of Cash Discounting For Your Business
Credit card issuers have steadily increased rewards for cardholders, which has encouraged people to shop with their cards rather than with cash. In the era of ever-increasing digital payment processor costs, participating in a cash discount program can increase your auto shop’s bottom-line profits, saving up to 90% in credit card processing fees!
Furthermore, the majority of cash discounting programs do not require you to register with major credit card companies, and they can be used with credit, debit, PIN, or swiped transactions as well.
Cash discounting programs don’t eliminate monthly credit card processing fees entirely, but they can reduce them significantly. In many cases, these programs reduce the monthly fees for auto shops by hundreds of dollars a month.
The Benefits of Cash Discounting For Your Customers
Not only is cash discounting beneficial for business owners, but it’s also something your consumers will appreciate as well. A majority of consumers want to save money, especially when it comes to larger purchases, and cash discounting allows your consumers to do just that.
Offering your customers an easy, simple way to reduce the cost of their transactions is a great way to foster customer loyalty. In fact, since cash discounting is so easy to take advantage of, many businesses report receiving positive feedback from their customers after implementing it. Your customers want incentives, and you want to lower your payment processing costs, so it’s a win-win.
Is Cash Discounting Right For Your Auto Repair Shop?
Regardless of size, industry, or type, any business can benefit from a cash discounting program, but the ones that see the greatest benefits are those with frequent small-ticket sales. This could be beneficial for items like vehicle inspections, oil changes, and extra parts sold to your customers.
All that being said, cash discounting is a great program to consider if you feel that your profits are being eaten away by credit card fees. It also helps your customer reduce the cost of the services they are buying from your shop.
Choosing the Right Cash Discounting Solution
Workshop Software is an automation software that uses digital means to organize, manage, and reduce the costs of your automotive repair shop.
For over 30 years, Workshop Software has helped thousands of global automotive and mechanical workshops become more efficient and profitable. With instant onboarding, quick-start training, and affordable costly setup fees, Workshop Software is the solution for modernizing automotive and mechanical workshops around the world.
Workshop Software also has one of the best cash discounting programs in the automotive software industry, making it easy to set up with in-store signage and employee training.
Contact us today to learn more about how Workshop Software can help you transform your auto shop into a streamlined profit machine. Check out our special offer for ASA members, where you can get 1 month FREE and qualify to get a free credit card terminal when you sign up for a merchant account.