Operational costs eat up profits. Don’t understand your merchant fees or rates? Don’t know if you’re getting the best deal on your software? You’re not alone. We’ve worked with hundreds of gyms and athletic clubs like yourself who didn’t know where to start or ended up going down the wrong path somewhere along the way.
Don't Give Away Profits For Operational Costs
Understanding your merchant statement can be very challenging, especially with today’s high processing costs and hidden software fees. After counseling thousands of RhinoFit clients, we know how to reduce operational costs at your gym. We’re here to help you break down your statements, show you where your payment processor is over-charging you, and identify key areas where you’ll save the most money.
Below are 3 simple steps that you can take today to help reduce your operational costs at your gym.
Switch Your Members to ACH
Many business owners are unaware of the financial advantages of collecting payments via ACH (E-Check) over credit cards. The truth is many payment processors don’t want you to know this fact so they can take more money out of your pocket. When you accept a credit card payment, such as Visa or MasterCard, you’re charged a percentage of a transaction rather than a flat fee. Since some processors can charge as much as 3.5% for a transaction, the fees can really add up quick.
With high-ticket amounts, credit card transactions could cost you up to $5 a transaction. By contrast, with ACH you only pay a flat rate of $0.50 a transaction regardless of your ticket amount. By implementing this payment option, you can cut your processing fees by 75% or more.
Invest in The Right Software For Your Gym
If you’re just starting out, don’t get caught up in all the hype over your gym software. Most companies love to sell features. The more features, the more the software costs. While having lots of features sounds good, paying for the ones you don’t use can add to your operational costs.
Make sure you purchase only the features that will help run your business. When choosing a software partner, make sure they offer great customer support along with an easy-to-use interface. An efficient software system should have the basic functionality needed to help simplify your member management while automating your billing process, scheduling, and financial reporting. This way you can reduce you and your staff’s time spent doing tedious administrative tasks.
Check for hidden fees. The software might look good at first glance, but if you can’t go to your partner for support or see past the fancy features, you could trap yourself into a long-term financial commitment that could hurt your business.
Remember, the right software for your business should be designed to save you both time and money in the short-term as well as in the long run!
Eliminate Unnecessary Processing Costs
Although accepting credit card payments is convenient, many gym owners don’t realize how much they are REALLY paying with all the hidden fees. Credit card processing includes an interchange rate that includes what card issuers (VISA, MasterCard, Discover) charge, plus a network cost and the sales organization’s markup.
Be careful! Too often we see processors taking advantage of merchants by adding huge markups to their interchange rates. The best way to avoid paying for high processing costs is to request a payment professional review your merchant statement so that they can give you a simple breakdown of your fees and show you where you can save the most money.