Taking Orders over the phone - Now taking them online

commadus

I am thinking of setting up a business selling a select line of small form factor PC.

I belive most of my sales will be to business customers but I would also like to sell the PC online but I really dont think I want an online shopping cart - I dont expect to sell more than say 5 devices a month (niche market) and I would like to speak to customers and take their order over the phone and then input their details.

Are phone orders less secure than internet only orders?

I know I will need to set up a bank account - Abbey national looks like the best. But what else do I need?

jonesMUFCforever

From a buyers point of view I would not buy from you if you did not offer credit card payments.
This gives me protection should a dispute occur or you go belly up.

commadus

Just looking at the charges for credit card payments its like 3%. Would you still buy from a site if you were charged 3% fee if you paid by credit card?

Conor_3

If the price were right, yes. OTOH, would you be prepared to take a 3% hit to get the custom? I know I would.

Just to add, make sure you're aware that under the Distance Selling Regulations, the customer has the right to return the item within 14 days for a full refund.

Fonz_2

Personally I wouldn't be happy to pick up the 3% charge as a customer - 5 years ago that was the norm but not now.

Apreciar

Fonz wrote: »

Personally I wouldn't be happy to pick up the 3% charge as a customer - 5 years ago that was the norm but not now.

You are paying it still, good business people just work additional costs into their selling price, it is then up to the punter if the price is acceptable or not. To add a cost like credit card charges after the price just alianates folk.

commadus

But how many people use their debit card to shop? I would like to be fair, debit card transactions cost 50p while credit card transactions cost 3% or more in fees.

If the item costs £500 then I would need to charge £15 extra for the simple fact of taking a payment via a credit card. I would rather provide the disciunt to the customer.

Poppycat

I do use debit card to shop accept high value goods etc not that I can now afford to for time being. I agree CC does give you better protection particularly if your not established seller.

I also think small form factor pc's have good potential for a dedicated pc for entertainment value to main TV, LCD. Obviously there more expensive than a standard pc

jonesMUFCforever

commadus wrote: »

But how many people use their debit card to shop? I would like to be fair, debit card transactions cost 50p while credit card transactions cost 3% or more in fees.

If the item costs £500 then I would need to charge £15 extra for the simple fact of taking a payment via a credit card. I would rather provide the disciunt to the customer.

As I started this argument can I possibly expand my thoughts.

Others have said that companies work in their costs (including credit and debit card fees) in to their prices. Have you worked out the cost of banking cheques into yours?
Business accounts are normally free for 12 to 18 months but thereafter charge a fee either on turnover or on items going through the account.

You say that you would incur costs of £15 on an order for £500 - well in my case you would lose a lot more. Instead of losing £15 you would lose an order worth £500!

I would also not deal with a company by telephone unless they were an established company ie somebody I know will be around in a year's time.
I find that this is nigh to nil as everybody I order from these days have the facility to pay online.
I understand that you will only be a small business but everyone has costs - if you do not work out yours now before you start it is likely to fail.

You say that you are looking at business customers as the niche of your business - have you worked into your figures the fact that businesses are much more difficult to get money out of than individuals?
Your comment that you would rather give the customer a discount of £15 rather than charge them for using a credit card is also worrying - once in business you need to be hard nosed and think profit profit profit.

I wish you well in your venture but its dog eat dog out there!

commadus

Thanks for that ejones999

I am looking at integrating Google Checkout as they charge 1.5% plus £0.15 per transaction.

I have worked out my costs and want to keep as little stock as possible. As to getting paid by business customers I agree totally that they can be hard to get payment from. Usually I have found the bigger the customer the slower they pay.

Looking at taking payments online if I use Worldpay they could charge upto 8% of the transaction value but whats more worrying is they will keep the money for 30 days before payment.

As to banking costs I was looking at the Abbey where I can have free banking for life for transaction volumes that suit me.

So is there a solution out there where I can take online payments without having to pay excessive monthly fees or huge percentage of sales?

jonesMUFCforever

Does your local council have a Small business advisory service?
I think the benchmark of 3% is fairly industry standard (just look at how Ebay 's fees are worked out).

I think you need to make a significant business decision now - and decide which business sector you are going to try and attract business from.
I think you need to decide whether you will specialise with business customers or private individuals.
If its the latter then IMO you will need to accept card payments.
If it is the first option then you might decide that you don't but then you have to draw up a suitable terms of payment contract for potential businesses to sign.
Any business needs cashflow - no point getting a decent size order if they don't pay anything for months and you are eating beans on toast with no heating in your house!