Let’s face it, we won’t be going back to “normal” anytime soon. The food and beverage distribution industry is constantly changing. Many Vendors and Distributors are in a belief that the changes brought on by the COVID-19 pandemic is temporary, but it’s clear that’s not the case.
To protect your distribution business during COVID and beyond, you will need to implement solutions that reduce overheads, minimise risks and increase profitability.
Here are four ways to save your Food and Beverage Distribution business during COVID and beyond.
1. Remove debt
This may seem far-fetched to achieve but it’s the easiest change you can make. COVID is forcing us all to move to more efficient ways of doing business. We know how you feel, as a distributor, debtors are your biggest frustration. Businesses can't afford to keep gathering debt, it’s unhealthy and you could risk going out of business.
A solution for food and beverage distribution businesses is a Payment Gateway. A payment gateway provides vendors and distributors with an automated payment solution. A Payment Gateway automates everything from invoicing to receipting. The benefit of a Payment Gateway is customer invoices are generated and sent automatically at the correct interval. On top of this the payment is taken from your customer automatically at the correct time.
A Payment Gateway reduces time spent on invoicing, reduces your businesses level of debt, and opens your doors for growth during and beyond COVID.
2. Eliminate customers closing down owing you money
Recent studies released by Xero showed that Australian food and beverage business wait over 28 days for payments. No matter what business you are in waiting almost a month for payments is unhealthy and you could find yourself in a cashflow hole. Adding to this headache many distributors experience customers who already owe money - close down.
In this situation a payment gateway is so helpful for businesses. Using a payment gateway you don’t need to worry about late or missed payments from customers. Once you set Payment Gateway up in EasyVend, the system will automatically handle the entire payment and receipting process for you. Once a customer places an order the total is taken from the assigned account instantly, accurately, and securely. You never have to ask for money again.
3. Eliminate payment processing staff cost
Reducing costs is by far the quickest way to improve profitability and set your business up for future growth. Many distributors are reluctant to invest into systems like the payment gateway due to cost, without seeing the clearer picture.
You are currently paying around 1% or more for existing credit card transactions, plus a far more expensive wage cost for someone to chase money, allocate and chase again. In reality you are actually increasing your overheads far more than the costs associated with implementing a payment gateway. With Covid continuing to present obstacles for businesses it’s so important you find ways to decrease costs, increase efficiency and maximise cashflow.
4. Pass on payment processing fees
As a business you incur costs whenever you accept a payment from a customer. Many food and beverage distribution businesses fall into the trap of writing these costs off. A simple way your business can improve cashflow is by passing on a payment processing fee to your customers.
Using the Payment Gateway in EasyVend will cost you 1.5% plus 30 cents per transaction. If you want to, you can even add this as a surcharge onto your invoices - meaning you will save even more money.
The Payment Gateway has become a massive success for many Australian Food and Beverage distributors. These Vendors and Distributors have gained a competitive advantage and set themselves up for future growth.
Due to the success, EasyVend has customers that now refuse new customers unless they setup automated payment methods. It’s very accepted today, in fact its far safer than people giving credit card numbers over the phone.
To find out more about the Payment Gateway call us on 1300 473 744 or click the button below.
For food vendors and distributors, EasyVend supports and automates every part of your business, freeing you up to grow your sales unlike other ERP systems on the market that are designed more for wholesale supplier than for distribution businesses like yours.
To learn more about EasyVend or to set up a free demo submit the form below.