Last night I had a rather uncomfortable conversation with a Father of the Bride about payment for the remaining balance for his daughter's wedding desserts.
The question came up, "Why don't you take VISA?" I've been stewing over that question since the conversation and discussing it with several other industry professionals. The wedding business is made up of MANY small businesses. Yes, I am a small business, but I'm actually smaller than a small business. I like to call myself a micro business.
Did you know that in order for a business to offer credit card transactions they have to pay 3-5% per transaction? For a micro business THIS IS A LOT! Assume a $600 wedding cake, a very average transaction!, I would pay between $18-30 for the transaction. Let me put that into perspective... a case of butter is $34, a bag of sugar is $15, a bag of flour is $18.
I love what I do, I love taking care of my brides and giving them beautiful and amazingly flavorful desserts to share with their family and friends on their wedding day. That being said, I want to grow and become a small business, so I have to choose where I spend my money very wisely!
I understand that weddings are a big expense. I've been a vendor at many of them and I too was married last year. I remember. So, to offer a compromise to the hard line of not taking ANY credit cards, I'll be setting up a Paypal account in the next couple of days to accommodate those couples who need to pay with a credit card. Unfortunately, even Paypal charges fees, so those fees will be passed on to those who choose this option, but at least now it is an option.
What do you think? Sound fair? Is there another alternative? What are other vendors doing? I'd love to hear from you!