Operating a business can be costly. From skyrocketing overhead costs to fluctuating transaction fees, merchants may find even the seemingly smallest expenses to be massive money drains. However, companies have alternative solutions. By tracking and analyzing where their dollars are being spent every month, businesses can learn how to save a significant amount of money on a regular basis. As a consequence, they can use these funds to reinvest in their companies.
Cutting down on critical resources and streamlining mundane processes are two key spaces where employers should first look when trimming their budgets. By employing some basic negotiation skills and utilizing available technologies, business owners can find ways to save time and money within their organizations.
Batching Credit Card Transactions at the End of the Day
The practice known as batch processing is now being regarded as one of the most financially savvy ways for businesses to submit and process credit card payments. Companies that rely heavily on digital or credit card-based sales, such as restaurants and e-commerce businesses, are able to minimize the costs associated with transaction fees through the process of batching. Every time a customer makes a purchase with a credit card, that business must pay an associated fee to process that transaction. However, companies that batch their sales at the end of the work day are able to diminish the amount of money they spend on these fees. This is because instead of paying a batch fee for each individual transaction, they are only charged one batch fee for all of the transactions from that day.
Once consumers enter their credit card information on e-commerce sites and complete their purchases, the transactions are processed by merchants. Then, the funds in the consumers’ accounts will be put on hold until the transactions are batched. Consequently, companies will send all of these pending transactions to their processors, who will claim the money from the purchasers’ accounts. Within two days, the funds will be deposited into the merchants’ accounts. Depending on the types of cards that customers use, merchants will pay transaction fees that average between 1.5 and two percent of the total purchase. However, employers who batch their transactions in groups, rather than individually, are able to considerably reduce the cost associated with these fees.
Using Robotics API to Complete Manual Tasks and Save Money
As companies grow in size and scope, business owners must consider utilizing new technologies to optimize their productivity and profits. Many large-scale operations are turning to robotics application programming interface (API) to complete manual tasks such as data entry and retrieving processes. For companies that own and manage dozens of e-commerce websites, gathering data every day can take hours of an employee’s time. As a result, organizations may be paying hundreds of thousands of dollars each year for workers to perform actions that robots can do for minimal upkeep.
API has the ability to perform the repetitive, time-intensive tasks that companies need to accomplish. These robots are also responsible for facilitating most online interactions or transactions that consumers participate on a daily basis. Some specific examples of API capabilities include:
- Consolidating information – Consumers often make online purchases using a third-party web interface. Moreover, when buyers book hotels, flights or cruises, they view information collected from other sites. That is because APIs retrieve information for users and present the data in a single, uniform platform.
- Building and connecting apps – All applications that consumers have on their mobile devices or tablets are made possible by APIs. In this sense, APIs are programmed to link users’ app icons with the actual sites they are trying to reach. As a result, the APIs work as gateways that lead customers from their entry portals to the companies’ product pages or sites. Similarly, APIs allow apps to build off of one another effectively and intrinsically.
- Data entry and retrieving – In the same way that APIs can collect information from different applications at varying companies, this technology can also be programmed to gather data from different interfaces within a company. Data entry and retrieving specialists are familiar with the monotonous actions of accessing particular portals in a specific order every day. Developers can use API to complete these same motions at a quicker rate that is less likely to produce errors. As a result, this saves businesses human, time and financial resources.
Negotiating to Cut Company Costs
Companies with eloquent team members can utilize these skills to cut down on company costs. In the business world, various expenses are open to negotiation, as long as the company has some form of leverage. As a result, organizations that have office managers or transaction processors with strong intercommunication skills may be able to negotiate for lower prices associated with clients, services or suppliers. Examples of areas where companies may be able to reduce their spending include:
- Credit card processing fees – Every time consumers make purchases using their credit cards, merchants pay associated transaction fees. These prices may seem small at first, but as businesses grow and sales rates multiply, these charges can add up quickly. Due to the competitiveness of the credit card processing field, merchants should negotiate with their providers in order to find the best deals for their businesses.
- Office supplies providers – All companies need supplies, and large-scale operations generally rely on particular office suppliers for their purchasing needs. As stable clients for these vendors, companies should be able to negotiate flat fees with their office suppliers. Taking this simple step can help businesses save thousands of dollars every year on purchases that they needed going to make in any case.
Free Marketing Campaigns and Outlets
With the onset of social media, gone are the days when companies need to invest thousands of dollars in marketing campaigns designed to reach new and current clients. A significant percentage of the U.S. population in metropolitan areas maintains some sort of digital presence, yielding benefits for merchants to advertise through these platforms. Furthermore, technology or e-commerce sites have an additional advantage when it comes to marketing themselves through these social networks, because their consumers are most likely already online.
By posting content on different social media platforms, businesses are able to maintain reciprocal communication with their target audiences. In addition, companies that create shareable content are more likely to have their content distributed organically throughout different channels. In general, most social media users find content via the platforms’ algorithm systems, which tend to benefit organic reach. On the other hand, companies that have larger marketing budgets may pay for social media promotions that yield additional ad campaign opportunities and exposure.