I have a small retail business employing 8 people. I started my business 26 years ago retailing women's fashion & some of the women who work with me have been with me since I started, so we are very much like a family.
I have never known trade to be as bad as it is now & I am suffering at the hands of my bank, as are most small businesses at the moment.
Last week my Card Processing Machine broke down (as it often does) as it was the week-end we were without the machine for a few days until we received a replacement machine.
What was interesting, is that, we never lost any sales, which made me think...
Do I really need this machine ? Do I really need to take plastic ?
We are lucky to have an ATM Machine close by & customers either paid by Cheque or got Cash from the ATM. Plus, the price of the average item we sell is less than £25.
I realise that this may not suit every business to do this, but, I have decided to take my Card Machine out & go back to basics- taking Cheques & Cash only.
Banks want every transaction to go thru them & the government want to know how much money is in our pockets & how much money we are spending. They will want every individual to keep personal books soon !
Paying for everything by card is adding to the cost of what the consumer buys & encourages people to get into debt with Credit Cards.
With my percentage charges of 2.9% on every sale (more on Amex) plus, the 50p Refund Charge on Card Refunds - bearing in mind that as many as 1/3 of purchases are returned for a refund - I've calculated that I would need to loose above £25k from my turnover before I actually start to loose any profit.
Plus, because I close at 8pm my transactions take 4 days to go into my bank as I am in the later slot for the banking window.
Big businesses have the advantage of being able to negotiate a reversal of percentage fees i.e. they get paid a percentage of the money they take on cards because of their high turnover. So again, small businesses are at a disadvantage.
I could keep my prices down by doing this and if other businesses followed suit the consumer would eventually benefit. I see it as taking control of our own finances again, both as a retailer & as a consumer. After all, we retailers & small businesses are also consumers too.
There may well be some minuses with this idea, but if small businesses started a campaign to rebel against the Banks starting with this one simple idea, then maybe this will drive transaction costs down for other small businesses who cannot trade without taking plastic.
Remember how successful the campaign was to "Buy British" in the '70's recession ? That idea was started by two young women- if I remember correctly. So, why don't we small businesses, do what we can to regain our independence and instead of relying on the banks before we spend a penny... lets start a campaign to by-pass the banks at every single opportunity.
This could be just one of many small ideas to force change in the banking system. It seems to me, that the banks don't know which comes first - the Chicken or the Egg. So, we need to show them.
It may also be a lesson for our younger generation. I watch our younger customers using plastic for everything. They walk into my shop with a bunch of car keys in one hand and their mobile and plastic card in the other hand- no handbag. They will then attempt to pay for something that only costs as little as £1.50... with a credit card !!!
We need to change the mentality of this generation as they are the least prepared for this credit crunch because they are so use to living now... Mum & Dad will pay later. They need to learn that the Piper has to be Paid and Mum & Dad won't always be around to pay their credit cards off.
After all, it's this generation who will become our future Politicians and Bank Managers. It's this generation who may one day have the power to.... stop Mum & Dad's Pension !
I invite your comments, feedback & further ideas to bypass the banking system.
Nobody is going to help us to get thru these bad times... so, lets get together & help ourselves.
The very best of luck to every small business out there...
Spanglesooty... or SS for short !
Small Businesses Retaliate ! Back to Basics 
Re: Small Businesses Retaliate ! Back to Basics 
