PAYMENT SOLUTIONS

THE COST OF WINNERS AND QUITTERS AT YOUR FRONT DESK

Saving $2948 / month is as good as making money but without the work.

For me it started in 1999. I was in charge of a call center in New York City for a grassroots adult tennis campaign. I was managing over 11 operators who were answering the phone and taking credit card orders for our adult group lesson program. It cost $5,000 a week to run and we were blowing through our USTA grant money quickly. Needless to say, it wasn’t the most efficient operation so I immediately recommended changes. Instead of hiring temp workers who needed lots of training I decided to outsource the telephone operation to to an answering service in Midtown and save 50% right off the top. We were now operating at $2500 a week and had operators ready 24 hours a day rather than simply 9-5. I thought it was a good value proposition. Saved half and got more coverage. But to my surprise the outsourced operators still needed training and lots of it since they didn’t really know anything about the tennis business. They knew how to answer the phone and take orders. I needed another solution and I knew what it was since we were blowing through too much cash even at 50% savings. It was time to take things online via the internet.

 

TREADMILL THEORY

Most small business owners say finding reliable workers is their biggest headache and cost. Hiring, training and retaining key staff requires time, energy and a big part of your budget. Additionally, any staff turnover adds to payroll costs even if you are outsourcing like I did in 1999. Because repeating processes and starting over gets expensive. It’s like a treadmill that freezes and needs rebooting. You never get a workout if you keep getting up to speed and have to stop suddenly then start over.

 

TODAY’S COST CONUNDRUM

How much does it cost to collect payments in your business? Let’s remove some of these cumbersome costs and find a more efficient way to collect money that allow you to reorganize your staff and lower costs significantly. I’m not suggesting 50% savings like in 1999. Think bigger. Think transformational. How about if I saved you 6,000% on your payment solutions? That’s not a typo. I mean six-thousand percent.

 

FRONT DESK MATH

Today your average front desk person at a tennis club today makes above minimum wage.

$12/hour + $3/hr for payroll taxes = $15/hour

In this scenario let’s say you hire two at 20 hours per week to keep their part-time status. In this scenario you are spending $2400 a month just to have someone watch the door and collect payments. Their primary duty is to the swipe and sign payment operation on your desktop computer at your club. I’m familiar with the operation as I used to be a front desk person in 1989 when cash and old school carbon slider machines that made an impression of you credit card digits.

 

ADDITIONAL COSTS

If you have a full time worker add least $300-600 month for health insurance depending on their marital status and family size and your group plan. This now leaves you at $3,000 a month in front desk costs.

New staff needs guidance to understand your system even if they are tennis aficionados unlike my 1999 call center who were tennis neophytes. But even if they can hit a Continental grip serve they will need hand holding to learn how to swipe cards and use your merchant software. More than likely you as the manager will be conduct this training. Let’s budget your time at $40 and hour. Training should take 5 hours per week for the first two weeks for a total of $400.

We are up to $3400 in development costs to bring this payment collector and gatekeeper up to speed. But just to be realistic and acknowledge the original number one problem of tennis facilities, finding good workers, we need to make one more calculation.

 

COST OF QUITTERS

Surprise. During your morning Latte you just found out someone just quit from your staff. The dog ate their homework, the broke up with their boyfriend or got a new job. You need a contingency plan. It’s time to pay for the Latte and find someone new to hire.

First, you will need to spend money on an ad and networking to find qualified replacement. Since we budgeted your time at $40/hour let’s budget 5 hours per week to put together an ad, call the newspaper, networking with peers and start collecting resumes and setting up and conducting interviews into your already busy schedule. Let’s budget $150 a week to buy the ad over two weeks for $300 total. Also, let’s assume a $12/hr worker might not care to give you two weeks notice and bails after one week. Now you cover their responsibilities at your $40/hr value x 20 hours because your other part time staffer has to go to their second job. We are up to $1820 after only 2 weeks. So if you don’t have someone in that short amount of times you will easily go over $3600 each month until you hire someone new. With staff turnover at entry level positions in small biz is 3-6 mos on average. So you can look forward to repeating this process almost quarterly.

 

BUDGET SAVINGS IS LIKE MAKING MONEY WITHOUT THE WORK

"A budget is telling your money where to go instead of wondering where it went."
- Dave Ramsey

Let’s use some simple scenarios. Let’s say your club does 100 transactions per month for your lesson programs and we charge you .52 cents per transaction using our dedicated Private Payments plan. We will also run a second scenario for our public Marketplace plan, which includes advertising at $2.85 per transaction.

Backhand City Payment Solutions (per 100 orders)

Private Payments: $52 / month
Marketplace: $285 / month (includes advertising)
Existing Front Desk Operation: $3,000 (not including contingency plan costs)

 

YOUR PAYMENTS SAVINGS

Private Payments your club saves: $2,948 a month (35k a year) = 6,000% savings difference

Marketplace Payments: $2715 a month (32k a year) 1,100% Savings for Marketplace Payments (includes advertising)

 

EFFICIENCY EQUALS GROWTH

Most point-of-sale transactions at tennis facilities are handled by these entry level workers. Their primary focus is to collect payments for you. Peak times are typically at the top of the hour leaving no time for upselling or customer service. It’s a game of "whack a mole" as front desk personnel hurriedly churn out electronic transactions on your terminal as antsy customers wait to get on the tennis court. This is followed by back and forth communication with on court staff who eagerly wait for a confirmed head count of paid players.

 

TENNIS PRO: ONE MAN SHOW

If there is no "front desk" even more exhausting is the task for on court provider who doesn’t want or have time to reconcile administrative tasks. The idea of running from oncourt to offcourt in sweaty conditions to do this important administrative detail is so overwhelming providers will simply forget to collect payment.

 

OUR PAYMENT MISSION

Our mission is to remove this administrative grind from your operation and let you focus on your job while you money ends up where it should be in your bank account.

 

EMPOWER YOUR CUSTOMERS WHILE FINDING NEW PROSPECTS

Let’s allow the customers sign up for your classes and make their payments on the device of their choosing ahead of time. This frees up your front desk and liberates customers to sign up for class before they arrive to the court.

This also allows your staff to have a copy of the paid class roster on their phone and free’s up your front desk operation with a focus on service and upselling.

 

BUNDLE PAYMENTS WITH ADVERTISING USING MARKETPLACE

The second biggest complaint managers and decision makers have is "no money for advertising". Everyone wants to advertise and get new customers but no one has the budget to pay. We understand.

Consumers are looking for efficient and frictionless ways to find your business and give you money so they can utilize your service. We provide solutions to make it easier to collect payments while advertising your business at the same time no matter if you are a multi-court tennis facility or the individual teaching pro.

Imagine if you were still using the Yellow Pages to find customers while your competitors are using Google. It would be like playing with a wooden racket. Consumers use their mobile phones as an everyday utility. Your goal should be to make it easy for them to find you AND give you money using these ubiquitous devices.

Our Group Lesson Marketplace not only removes administrative grind it also promotes your service at the same time. There are no upfront costs you simply pay for each transaction on our site while we promote you tennis club. This lead generation allows your to sell membership, pro shop accessories and develop new prospects for tennis professionals looking to add new students to their customer base. Imagine what you could do with an extra $2900 in your budget every month.

 

DIRECT DEPOSIT

The best part of our service is the sales go directly into your bank account minus our transaction fees outlined below. There is no set-up or monthly fee. It’s a performance based payment model.

We have created a frictionless experience for both your business and consumers searching for your tennis service. Our onboarding is easy to set up as we manage your account and set up deposits that go directly into your checking account. All that’s left to do is pick the service that works best for your business.

 

CHARTER OFFER

As this is a new innovative payment solutions platform for the tennis industry we are offering early adopters our low charter rates. Pick from one of three customized options below to help each club or individual tennis pro suit their payment needs.

  1. 1. PRIVATE PAYMENTS: Ideal for tennis clubs looking for web and mobile payments that free up your staff and reduce administrative grind. This service is easy to add to your existing website or social media page.
    Price: .52 cents per transaction

  2. 2. MARKETPLACE: List your tennis services on our Backhand City Marketplace to drive new business while streamlining your payment collections with deposits directly into your checking account. This is a great way to cost effectively advertise your business with no upfront fees while easing administrative duties.
    Price: $2.85 cents per transaction

  3. 3. LICENSING: Operate and develop custom adult tennis programs to drive Millennials to your business and add new private lessons leads at no extra cost. Each License includes customized branding and advertising campaigns for your operation to build value in your business while adding new customers. Example: Cardio Tennis, LiveBall or Club Events.
    Fee based on Market size and Operation

 

THE SWEET SPOT

The Sweet spot for this product is lower costs and increased sales utilizing technology’s effectiveness and efficiency. All of your sales, minus our fees, are deposited directly into your checking account. There is no invoicing or waiting for a check in the mail. You get to focus on your business and let us handle the marketing and payment processing. Now you can transform your operating costs, reassign front desk personnel while increasing awareness of your business to drive sales. No more staffing issues or extra marketing costs. Two of your biggest headaches have just been solved.

 

Sales Contact:

Brian Lutz
Brian@Backhand-City.com
917-312-9454 whatsapp

P.s. Your tennis business is one phone call away from being more efficient and 6,000% more profitable. Let’s get you onboard today.