Ms. Ransom,

I had the pleasure of reading your article today.  You have successfully illustrated the small business “pains” in accepting plastic – which is a necessary part of business today.  Not only does everyone want their “Airline Miles”, but even medical offices are forced to accept credit cards due to our pre-tax flexible spending accounts.  Those funds are deposited into bank accounts and participants are issued debit and credit cards to access the funds. Of course, you cannot ignore the fact that a family of four now costs well more than $25 at McDonald’s.   There are many reason that credit card usage has increased.

In addition to the increased usage, you have all the new and wild ways the credit card associations come up with for banks to make money so they will keep issuing cards.  The most popular was the April ’05 separating of rewards cards.  Post April ’05 interchange increased either 11 basis points or 36 basis points (visa) depending on the type of business you own.  The biggest issue that Merchants face is NOT the stupid infinitesimal fees that keep coming up, it is how the processors take advantage of how to charge for those fees.

My name is Jeff Tieger, President of Business Advantage Group.  I have many years experience in the Merchant Services World.  I left the business to use my knowledge of interchange to negotiate FOR my clients as opposed to against them.  It is no less than amazing to see the blatant misuse of knowledge in the credit card processing world.  I have clients that previously paid 5%, 7%, up to 14% to accept credit cards.  Credit Card Processing negotiation is only one of the contingency based services we provide, but since your article is specific and this is my expertise, I will stay focused here as well.

In keeping with my 5 year old example, which still costs business owners way too much, allow me to illustrate how the end user gets taken for a ride.  In most cases the pricing structure consists of a base rate (or teaser rate) plus a surcharge for downgrades.  A transaction will downgrade for any of countless reasons.  In most cases the surcharge for a mid-qualified transaction is  50 to 100 basis points and 75 to 200 for non-qualified.  A rewards card can be placed in either of the categories depending on what the processor wants to do…fair right?  Theoretically a merchant will pay an additional 50 to 200 basis points for a rewards transaction when it should only cost no more than 36 basis points.  How many credit cards out there today are not tied to some type of rewards program?

In your article you cited the example of coffee and a muffin.  Both Visa and MasterCard have rates designed for “small ticket” items.  The interchange percentage is 10 basis points higher but the flat transaction fee goes from $0.10 to $0.04.  The $0.06 is much more important than the 10 basis points (or $0.015 on a $15 transaction).  These are just 2 of a million examples of how the processors are a much bigger problem than the associations. 

American Express has highly discounted rates for specific industries and it is always suggested that a merchant goes through Amex directly and NOT through their processor.  If you do not fall into one of the verticals that Amex offers discounts to, there is not too much you can do.  Although some processors are beginning to process Amex now and offer discounted rates to do so.  Many processors have been processing Discover transactions for quite some time so those rates have become more controlled as well.

I strongly disagree with one point made in your article.  Small business is not left out in the cold to pay higher rates, while the aggressive rates are saved for the Wal Marts of the world.  Although that was true as recent as 5 years ago, today you simply need to know what to look for and more importantly, what to ask for.  The most immediate opportunity for business owners to control their credit card processing costs, is to understand how it works and negotiate with their processor.  Since that is a tall order, there are companies like mine that do the negotiations for them on a contingency basis.  Our service will never cost them a dime.

Thank you for taking the time to read my e-mail.  Have a great day.

Read the article I commented on.  http://online.wsj.com/article/SB10001424052748704094304575029091882451812.html

Jeff Tieger

President

Business Advantage Group

jeff@BizAdvantageGroup.com

Maximize Revenue…Minimize Costs…Plan for the Future

All too often business owners abide by the old philosophy that increasing revenue will fix problems.  That is a very outdated and one dimensional look at a business in a world that has become much more complex and…three dimensional.  Focussing solely on sales to stop the bleeding is only part of the solution.  It costs much more to go out and get a new client than it does to look at what you are spending in order to service that client.  By overlooking inefficiencies in spending you will dig an even deeper hole with each new client.  Making expense analysis part of your regular routine, you will ensure better security when the sales are just not there.  Performing an expense analysis is a waste of time unless you really know what you are looking for.

Contingency based cost management consulting is not a new thing, however the value of expert knowledge being used to your advantage is much more appreciated now.  We have witnessed the worst economic crisis since The Great Depression.  The result is an amazing change in strategy.  One of those strategies has been seeking the help of industry experts to assist in the decision making process.  Business Advantage Group’s client base has grown significantly since the down turn.  That growth is attributed to our clients’ need for cost savings…yes…but also increased efficiency.  If we are using our years of knowledge in different areas of business, their employees can be focusing on driving sales and improving different areas of the business.

Increasing revenues and cutting costs will certainly bring success for today, but what is your guarantee for tomorrow.  Investing in your businesses financial security will solidify your success in the future.

What would happen to your business if you were no longer running it?  Do you have someone to take your place?  How will you create an equitable situation with one child in the business and the other one not?     If something happened to your partner would a spouse now own that part of the company?    How and when would you transfer the business and would there be value enough that you could retire comfortably?  What can you do to keep key employees?  According to Dan Katzeff, Financial Services Professional at Lee-Nolan Associates, “The day you open the doors of your business is the day you should start exit planning.”  Planning is the way to keep the promises you have made. 

Have the foresight to use a portion of your increased revenue and cost savings to put plans into place to protect your business, prepare for succession and save for retirement.  3-D thinking will help your business thrive during economic highs, survive during economic lows, and drive through whatever may happen next.

Building your pipeline and keeping it full is always a challenge.  Getting in front of enough prospects to generate a buzz and create interest in your business takes a lot of time for potentially minimal return. No matter what your product or service is, the most important thing you are selling is yourself.

Print ads in trade mags, Wall Street Journal, Crain’s, NY Enterprise Report, etc can be very expensive with the potential of no return.  TV commercial campaigns can be tricky and pricy as well, unless your target audience is watching Seinfeld re-runs on TBS at 2 am.  Any expert will tell you to diversify and attack multiple mediums in order to be effective.  For small and mid size businesses, the cost and risk of an advertising campaign is just not feasible. 

Like many other issues, this too can be solved by using the internetto your advantage.  All you need is 60 seconds in front of an infinite number prospectsto open countless doors.  You can create a 60 second video to play directly from your web site or even on You Tube.  The link to your video can be e-mailed to your entire database as well as being out there for anyone to see on You Tube!  This gives you the unique opportunity to speak directly to your prospects and give them a reason to visit your web site or contact you directly.  

Business Advantage Group has partnered with 18 Productions (www.18Productions.net) to provide small and mid size businesses with an aggressively priced video of you communicating your message, that can be sitting in your next client’s e-mail within 48 hours.

For more infomration contact

Mike Lauer

President

18 Productions

(908) 510-5920

mike@18productions.net

When you actually consider what it costs to make a dollar in today’s world, it is amazing that anyone can actually stay in business.

First of all you have to have a home base.  Even though many business owners can actually work from home and have a completely virtual operation, the overhead can still be significant.  Computer networks, back-up and data storage, and telecom all add up.  Now you need to create a fantastic impression with a tremendous web site and marketing materials.  A worth while investment (especially considering, if done properly, your web site will be a 24/7 sales rep with no goegraphic restrictions), however potentially expensive.  What about advertising?  There are low cost / high impact options (internet videos that can be e-mailed give you an opportunity to “talk” to your prospects with out being there), but they still have a price tag.  Then of course we have to think about staff…both revenue generating and non-revenue generating.  Salaries, commissions, benefits, vacation time…it makes you want to do it all alone.

Point??? Business Advantage Group will analyze your monthly expenses, identify hidden fees overcharges and more efficient pricing structures, negotiate with your current vendor, use our buying power to your benefit with our preferred vendors, AND manage all of these relationships for you so you don’t ever have to spend time on hold waiting for customer service.  All of this costs you nothing.  We simply earn a percentage of what we SAVE for you.

That is what cost reduction and cost containment are all about.  Small Business, Big Business…does not matter.  Take advantage of  the knowledge of our team (each analyst has a a specialty in one of our areas of concentration) to do the research for you, while your team can now be more efficient working on their other tasks.

Now, about that proverbial penny…

For more information please contact me anytime

Jeff Tieger

President

888-377-3331

jeff@bizadvantagegroup.com

Mayor Michael Bloomberg makes it perfectly clear that small businesses will restore the strength of our economy. I recently saw him at an event celebrating the 400th anniversary of  Henry Hudson’s journey up the river that now bares his name. Mayor Bloomberg, who regularly advocates for financing for small businesses, mentioned that if every small business were able to hire one more employee it would solve our unemployment issues.

During a brief conversation with Mr. Bloomberg, I suggested that one of the obstacles facing small business today is the disadvantage they face when shopping for products and services they require just to open their door every day.  Since business owners rarely have the research time and detailed knowledge of the profits generated in providing those necessary products and services (such as telecommunications, merchant services, energy, office supplies, etc.), they are open to being overcharged.

The Mayor’s response was that someone should start a business that does the shopping for them.  So true Mr. Mayor, and that is the exact service that Business Advantage Group provides.  Not only do we do the actual shopping, it is done by analysts who each have a specialty in the area we are shopping. Who better to find you the best pricing and sevice for your business than someone on YOUR side who knows what cost is?

Thank you, Mr. Bloomberg, for the confirmation.  Business Advantage Group looks forward to every opportunity to help a small business achieve the success they work so hard for.  By uncovering hidden fees and overcharges, we add to the profits of our clients which will undoubtedly help them grow.

Jeff Tieger

President

Business Advantage Group

jeff@BizAdvantageGroup.com

(888) 377-3331 ext 3

It is no secret why corporate sponsorships and donations to nonprofits have dwindled.  The generosity is still there (thankfully) but $1000 sponsorships have become $100 or even less.  Unfortunately, the need for these donations is just as great…if not greater than ever.

Nonprofits can still meet their goals in an efficient way…it jst takes a little “out of the box” thinking.  Rather than deciding how much a business can stand to GIVE for a donation, let’s discuss how much a business can GET for a dontaion.  I am not talking about advertising space that may or may not generate exposure and revenue.  I AM talking about increased profits.

Business Advantage Group has a nonprofit partnership program that generates monthly residual donations for nonprofits that will cost their corporate sponsors NOTHING! 

When a nonprofit refers BA Group in to a business and we can save that business money, we will then donate a percentage of the savings back to the nonprofit.

Imagine an income stream generated by your corporate sponsors…that not only costs them nothing…but actually MAKES them money.  Whether you represent Big Brothers/Big Sisters, Children’s Miracle Network, American heart Association, or other organization large of small, Business Advantage Group can help you achieve your financial goals through innovative and economicly relevant programs.

For more information, please call 888-377-3331 ext 3.

There are many reasons to start your own business.  “I have always wanted to own a business.”  “I am tired of making money for someone else.”  “I got down-sized.”  Despite the reasons for doing it, the goal is always the same…success.  You will be a success because you have something to offer that is different or better than what is out there.  You know something that most people don’t know.

Unless you have started businesses before, you are about travel down a new road.  “Where can I get money?”  “How do I set up a network?”  “Who kind of phone system do I need?” “How can I come up with a strong logo?”  “What should my website be like?”  “How do I get business?”

Just like your new business, it takes years to understand the intricate details behind the services you need just to open your doors.  Starting off on the right foot is the best way to make sure you are part of the small percentage that will survive the first 2 years.  Finding the right vendor who will actually sell you what you need and not more, while charging you a fair price, is not easy to do.  Even if you find a vendor you like, how do you know you are getting a good deal and not leaving money (which is not easy to come by) on the table?  You will always be at a huge disadvantage when negotiating with someone who knows more than you.

The best price is not always the best deal.  You are the expert in your business.  There is not enough time to become an expert in other businesses as well.  During our time in business, BA Group has carefully created realtionships with vendors in all areas of business service.  All of these vendors are leaders in their industry.  They are leaders because of one main reason…they provide top quality customer service.  The service you will need to make sure your business is always running at full speed.  You can leverage BA Group’s vendors relationships as well as the unmatched pricing offered to BA Group clients.

Each member of our team is an expert in one of our areas of concentration (telecommunications, merchant services, payroll processing, office supplies, energy, IT, start-up capital, sales training, shipping, etc).  Not only will you be able to take advantage of our pricing, but our team will manage your vendor relationships for you.  Bottom line…all you have to do is focus on what you do best, because we focus on everything else.

Jeff Tieger

President

Business Advantage Group

jeff@BizAdvantageGroup.com

You, like most business owners/executives, have done your research, comparisons, and shopping around.  You have negotiated with several potential vendors.  Finally the pain staking process has ended and you feel GREAT about the “deal” you have.  You may feel great, but how do you know you have the best possible deal?  After all, haven’t you been negotiating with someone who knows true cost?

Let’s take telecommunications for example.  If you carefully look through your latest invoice, do you know exactly what each line item is?  What each fee is for?  Your vendor does.  You are at a serious disadvantage if you do not know as much about telecom as your sales rep.  If you hired your telecom rep to work for your company with the primary responsibility of getting you the best possible deal on telecom service, you would probably pay a lot less.  Especially if you new employee benefitted from saving you money.

Knowledge is a saleable product.  Business Advantage Group is comprised of a team of analysts who each have expertise in one of our areas of concentration.  We will level the playing field for you by using our inside knowledge of the different services your business needs to operate.  It is that knowledge and the years of experience that make us uniquely qualified to negotiate rates for you that are pennies above true cost.

If you can match 30 years intelecom, 10 years in credit card processing, 12 years in payroll processing, 10 years in offices supplies, and 53 years in  energy; then you probably won’t require our services.  If you can’t, the overwhleming odds are, you should be paying significantly less for your necessary monthly services.

Jeff Tieger

President

Business Advantage Group

jeff@BizAdvantageGroup.com

How much can you take?  It is everywhere.  “Economic Downturn”, “Recession”, “Stock Market is down again”, “It will take years to recover”.  Rather than panicking due to the depressing stories we watch and read every day, perhaps a little creativity and positive thinking is what we need avoid furthering the decline.  The question is, “What are some things you can do right now that will NOT have long lasting negative effects on your business?”

Obviously our current economic situation requires us to make many changes to survive these challenging times.  Drastic decisions will only hurt you in the long run.  If you cut salaries and jobs, your employees lose all sense of security and therefore lose focus.  If you cut down on benefits and bonuses, you also cut down on incentive and motivation to go the extra mile.  It is that extra mile that will help you rise above your competition.  If you cut back on your advertising, you will quickly be forgotten.

What can you do BEFORE you get to that point?  Go back to basics!  There are two ways to grow a business…

1) Bring as much down to the bottom line as you can

2) Increase the top line

Use a scalpel not a machete when cutting costs to build your bottom line.  This is the time to investigate your monthly expenses. When was that last time you really looked at your telephone bill, energy bill, merchant statement, or payroll service?  Most people will say “I look at them every month” or “I shop my rates every year”.  You can probably save a few dollars here and there by shopping and drudging through proposals from your RFPs.  Are those dollars worth all of the time it takes to find them?  You could probably save even more if you worked with someone who knew more about each service you use.

There are so many nuances, unknowns, and variables to every service your business needs to operate.  It is just not possible to be able to know it all well enough to be certain your rates are fair.  Obviously sales people want to sell you their product or service at the highest price you are willing to pay.  How can you be sure this is the product or service that best meets your needs at the best price?  Seeking the lowest price from a list of proposals is only one step in the process.  You will also need to make sure that competing proposals list products or services that are equal when it comes to the benefits they offer you, rather than the features you will never use.  Next, by asking the right specific questions you will be able to make sure you can “trim the fat” by not paying any unnecessary fees.  Knowing what you are actually paying for is imperative in ensuring a fair deal.

While your competitor is spending time in the corner office comparing apples to oranges, you need to be focusing on building sales and growing your client base.  When you are out increasing revenue, you need people who understand the costs you incur each month to effectively reduce them.  Those people are out there and easy to find.  Consultant is a popular word these days, but that type of relationship offers you so many possibilities.  The most important thing it offers you is the ability to get something done by those that know every detail.  The initial thought is that you can do it yourself, or that is the CFO’s job.  I personally have spent the past few years improving the CFO’s efficiency as my method of consulting is slightly different.  It carries no risk and no cost to my client as my company simply earns a percentage of the savings it creates.  This way, your CFO can focus on everything else on his/her desk while you focus on building sales and the experts perform the analyses and comparisons to maximize savings.

Caution is of utmost importance.  Making the right decision the first time is imperative.  Put the talent in the right place.  You are the expert in your business and therefore the best person to build your customer base and create revenue.  The best way to turn as much of that revenue into profit is to have Business Advantage Group managing your expenses.  Each member of our team has many years of experience in the industries that provide the services you use.  That gives us the ability to ensure your relationships with your service providers effectively satisfies your needs at the lowest possible rates.  BA Group is a performance based firm, simply earning a percentage of the savings we create for your business.  This provides a cost free/risk free opportunity for you to effortlessly turn your revenue into profit.

If you would like further information, please contact me ASAP.

jeff@BizAdvantageGroup.com

www.BizAdvantageGroup.com

888-377-3331 ext 3

The main focus by the top offices in today’s business world is the bottom line.  Maybe, just maybe, cost efficient, innovative ways of creating revenue can offset some of the need to lighten the load.  Even in today’s market, you can increase sales.  You may have to be willing to think out of the box.

“Insanity: doing the same thing over and over again and expecting different results”, Albert Einstein.

Like many businesses, it is possible that your “cash cow” turned into a “lame duck”.  Should you find different ways to sell that same product or service, or should you find different products and services to sell?  The more you diversify the better chance you have of making a sale.  A different light on your previously hot item may make it fresh and new again.  In addition, take a look at some old product ideas that you have steered clear of in the past.  They may be more relevant now.

Outstanding customer service is of ultimate importance.  Those people that you take great care of now will remember you when it is time for a larger purchase.  The extra mile goes a long, long way.

Going in a different direction when building your client base will help you stay a step ahead of everyone else.   Just like you, the first thing your competition did was to slash their advertising budget.  It saves money, but at what cost?  The number of people who receive your message is lower; therefore the number of people who buy from you is lower as well.  While your competitor is figuring out which bills to pay with the money saved from their advertising budget, you need to get out and rebuild your networking skills!  The more people talking about your business the more prospects you will have.  In addition, every referral you make to a client or prospect adds value to your sale.  The more you do for your client, the better the chance you have of making that sale.

There are so many new and creative ways to network.  The days of the lead quotas and 7 am meetings are over!  For a nominal fee you can join groups like 24-7 Networking Sales www.24-7netsales.com .  This is a brilliant model that connects buyers with sellers.  The beauty of 24-7 is that for every lead you submit that generates revenue, you earn a commission.  Even better than that, the other members are motivated to learn about your business so they can get a commission from you.  For a slightly larger fee you can play golf with other business owners through the World Golf Network www.worldgolfnetwork.com. You’ll be in a strategically designed foursome with decision makers that are looking to do business…right now.  Networking gets your message out there in a much more personal way and opens that door for you while your competition is still outside knocking.

During your mission to increase sales, do not forget the endless value of the internet.  The most important thing about your web site is how it is used.  Having a web site to direct prospects to is important, but only a small piece of successful internet marketing.  Your web site should be bringing prospects to you.  It can be a valuable asset and a relatively inexpensive way to advertise.  Yes, the price tag may be high, but the impressions you will make are immeasurable.  So the cost per impression is minimal.

You are the expert in your business.  Let everyone know how much of an expert you really are with your blog.  Blogging is a great way to drive traffic to your site and reach your entire database to remind them you are still in business. It is also the fastest no cost way to get picked up by search engines.  Make sure you are easy to find where most people go when they look for information.

In trying to effectively trim your advertising budget, consider e-mail vs. direct mail.  When you combine a menial return with $.42 for a stamp, the price of the direct mail campaign really cuts in to your potential profit.  Especially when you consider how many of those expensive mailers will end up unopened in the shredder.  While your competition is stuffing envelopes, you need to be compiling a database and sending out e-mail blasts.  At the click of a mouse, your advertisement, newsletter, or blog can be waiting in thousands of inboxes.  Perhaps you can expect the same small return, but you have spent much less.  You will also gain so much more information.  If you use e-mail marketing websites like www.constantcontact.com or www.emailbrain.com they can tell you everything you need to know about how your message was received.  You can view statistics on how many were deleted, how many were opened, how many clicked the attached link to your web site.

People are spending money.  Certainly not in the same way, but they are still spending.  If you are proactive and not reactive you will always stand a better chance at closing the deal.  Take advantage of the current situation and carefully put procedures in place that will not only build sales in a more cost efficient way, but continue to grow your business well beyond the economic rebound.  On the other hand, if you are not careful now and you make drastic decisions, you will spend the first year of the rebound catching up rather than reaping the benefits.

To quote my brother, “My business is recession proof”. It is not luck. It is just how he built his business.  In this time of panic, do not make quick “knee jerk” decisions.  Take some time to think about how each of your options will affect your business over the next few years and into the rebound.  Ask for opinions.  Assemble a group of friends and family to bounce ideas off of.  They may not understand your business completely, but they can certainly tell you how they would react to the changes you are considering.  Follow these simple suggestions, and you too can make your business Recession Proof.

If you require any further information, please contact me ASAP.

jeff@BizAdvantageGroup.com

www.BizAdvantageGroup.com

888-377-3331 ext 3