By now you may have heard several different stories about the upcoming light bulb ban.  Although a complete ban was put on hold http://money.cnn.com/2011/12/16/news/economy/light_bulb_ban/index.htm, it is inevitable.  Incandescent bulbs are basically unchanged since Thomas Edison brought them to light..lol.  Times are changing and countries all over the world began to ban incandescent bulbs years ago.  http://en.wikipedia.org/wiki/Phase-out_of_incandescent_light_bulbs.

Although a complete ban in the US has been put off for now you will notice that by July T12 fluorescent tubes will be banned along with 100 watt incandescents.  New energy standards prevent at least these bulbs from being manufactured in the future.  Two years ago the magnetic ballast that was required for T12 operation was discontinued.  If you have been putting off that replacement, you’d better stock up on bulbs right away.

The replacement bulbs that meet the new standards are already on the shelves.  Whether you choose the risk of mercury poisoning from compact fluorescents or the higher cost LED bulbs, you’ll be making changes in the near future.  The out of pocket could get out of hand.  Give us a call and we’ll point you in the right direction.

Jeff Tieger

Business Advanatge Group

(888) 377-3331

Business owners have already had the right to suggest that their customers use a form of payment different from a credit card. Have you ever seen the handwritten sign “$10 minimum on credit cards” or notice the cash price vs. credit price at the gas station?

A recent judgement by the Department of Justice gives business owners the right to also suggest or encourage their customers to use a different type of card.

In case you haven’t been brought up to speed, “rewards” cards cost you more to accept. Hey, someone needs to pay for the cost of the rewards programs. There are over 200 cost categories, each more expensive than the next. This recent judgement gives you the right to suggest that your customer use a card with a lower cost.  You can suggest a non-rewards card, or Visa instead of MasterCard…or vice versa. You can even suggest a debit card, or American Express or Discover. Here is how it can be done:

• Offer a discount or rebate
• Offer a free or discounted product
• Offer an incentive or benefit
• Express a preference for a particular brand of general purpose card
• Promote a particular brand of general purpose card
• Communicate to the customer that the cost of the card they wish to use is higher than other cards

Credit card processing rates have gotten out of hand, but now with a little understanding on your part, you have even more control over what you pay.

You can see the actual DOJ judgement here www.justice.gov/atr/cases/f273100/273170.pdf.  You can also see the text of Visa’s rules here http://usa.visa.com/merchants/operations/op_regulations.html.  I assume you can also find MasterCard’s rules on their web site, although I have not yet seen a link.

 As always, if you have any questions just ask.

Jeff Tieger

President

Business Advantage Group

jeff@BizAdvantageGroup.com

(888) 377-3331 ext 3

Times are tough…no surprise there.  This is an economic situation like no other in history.  In order to stay ahead or get back ahead, you’ll need to try some strategies you’ve never tried before. 

 Here is a unique opportunity to particpate in a seminar that joins strategies in revenue building as well as  expense reduction.  Action Coach and Business Advanatge Group have teamed up to give you some new ideas about how to increase your profits.

Join us October 19th at 5:30 pm.  70 Wood Ave South Iselin, NJ.

Today’s businesses are running leaner than ever.  Most of the recent cut backs have been in payroll, but expenses still need to be cut.  The only problem is, there are now fewer people to spend the time it takes.

The current craze is to outsource cost containment.   Find a company to cut costs for you, while you focus your time and energy on increasing revenue.

You may wonder, “How can an outside company better reduce my expenses than I can?”  Simple.  Expense reduction firms close the gaps between buyer and seller.  Those gaps are mainly knowledge of true cost, and time to research the best buying situation.  These firms, like Business Advantage Group, are made up of individuals each with their own specialty.  When those specialties are combined, they can cover most of your monthly expenses.

For example, let’s say you are looking at cutting telecommunication costs. Would you prefer your CFO spend the time (and your money) researching what our telecom consultant with 30 years telecom experience already knows? 

Business Advantage Group has saved its clients millions of dollars and countless amounts of time.  What are you waiting for?

Jeff Tieger

jeff@BizAdvantageGroup.com

(888) 377-3331 ext 3

We have heard many times that the government was going to get involved in credit card processing regulations.  Let’s hope this is the start.  Yesterday it was announced that the Federal Government is going to impose a $0.12 cap on debit card processing fees.  You will articles about this  on CNN, MSNBC, Daily News, NY Times.  Read them all as they all tell a great story.

The major argument against it is that Visa and MasterCard will take a hit (they already have as shares DROPPED after the announcement), as well as the banks. Finally the government seems to be on the side of American SMB’s.  Kudos!  The cap reduces the current average fee ($1.15) by 90%. 

There are currently 2 ways for a merchant to process a debit transaction.  The first is signature based, where the card holder signs for the transaction which is processed through the same Visa and MasterCard interchange as credit cards (with a lower cost).  The second is pin based, where the card holder enters a secret pin number for the transaction which is processed through the debit networks. 

The better choice depends on the size of the transaction.  Signature based debit transaction fees are more about the percentage of the sale, where pin based tansaction fees are based more on “cents per transaction”.  A cap already existing on the debit networks (MAC, NYCE, STAR, etc), which is on average $0.65.  Generally speaking, if your transaction is $50 or less you would want your sutomer to sign.  If the sale is more than $50 give them the pin pad.

Any questions?  Contact me at any time.

http://money.cnn.com/2010/12/16/news/companies/debit_card_fee_rule/index.htm

http://www.msnbc.msn.com/id/40706796/ns/business-us_business/

Jeff Tieger

Business Advantage Group

jeff@BizAdvantageGroup.com

Anyone who has taken an economics class knows that when there is profit in an industry it will quickly become overcrowded.  Anyone who owns a business knows from the thousands of phone calls, e-mails, and flyers, that energy reduction is such a  business.

I suppose it is no surprise that when I mention energy savings to a client their head drops in frustration because they have heard it all before.  Still, they halfheartedly listen.  Either to be kind or with the hopes that this may be the “real deal.”

In any competitive business you have the good, the bad, and the ugly.  BUT…Energy Advantage is DIFFERENT!  Yes you have heard that before!  But you tell me, where else can you find RATE REDUCTION, CONSUMPTION REDUCTION, and GET MONEY BACK…all in one place.  Pay less for what you use…use less…and then get money back that you have overpaid for the past 6 years.  Not to mention we will handle ALL of the necessary paperwork for state incentives and tax credits.  Now THAT is different.

Want more?

Call me today…

Jeff Tieger

President

Business Advantage Group

jeff@BizAdvantageGroup.com

www.BizAdvantageGroup.com

888-377-3331 ext 3

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

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

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