November 2010
We were at a conference recently with 250 other companies who sell credit card processing services. We’d like to call them our peers, but what we do is so different than these businesses that we’re apologetic to have to call them our competitors. We were both shocked by what we heard from these other companies and re-invigorated that we are on the right path to help wineries escape from these unscrupulous sales organizations.
We found ourselves in a room with middle aged men who would look more at home on a used car lot than in a hotel conference center. Yes the comb-over was prevalent, but worst of all the dodgy sales tactics were overflowing.
Here’s one that takes the cake – At Winery Payment Solutions we refuse to lease equipment to our clients, simply because it’s a bad deal for your business. We gladly post our prices for equipment on our website, starting at $199 for a basic terminal. Because you can acquire the equipment for so little, leasing the same equipment for $25 a month is predatory pricing and we simply won’t do it.
So we were shocked when a competitor proudly announced to us that they had found a way to lease Virtual Merchant access. Virtual Merchant is a website so you can submit your wine club orders, phone orders or integrate directly with your e-commerce websites. So, we provide a user id and password to a website so our winery clients can perform transactions. This competitor was proud to tell us that they “lease” access to Virtual Merchant for $23 per month to their clients. WHAT??? They “lease” access to a publicly available website? This is on top of a monthly fee to use Virtual Merchant.
The economics of this are scandalous. The competitor is committing the winery to pay $23 per month for 48 months which adds up to $1,104, for nothing. This is pure profit for the agent and purely disgraceful tactic to pad their bottom line.
We hope that you have not fallen prey to tactics like these as we work hard every day to educate our clients and provide honestly better payment processing services. Never lease your credit card processing equipment; we can help you along a better path.